The leader of an organization can either have a positive or negative impact on a company. A great leader can influence their employees to do their best, this includes guiding them in a positive direction instead of criticizing their mistakes. A leader must learn to adapt to new situations to help the firm succeed. A leader’s style is also important, one leadership style may work for one company but not another. It is important for a leader to embrace their leadership style while also recognizing how to adapt that style to what employees need to succeed.
Throughout this exercise, we have learned a lot about the impact that a leader has on an organization. “When good leadership is in place, it can be felt throughout the entire organization. With good leadership, corporate culture isn’t forced, it is developed” (Anderson, 2013). Under good leadership, communication is open, and employees understand the vision and goals of the company and they feel that they are an important part of the organization. Leadership means motivating people to do their best, working at full efficiency and in the best interest of the company. Leadership can impact a company in several ways. Positive leadership can increase sales, production and influence culture. With bad leadership, “there is a lack of clear, consistent communication from leaders to the employees. Employees are uncertain of the company’s goals and objectives for success and they have no idea how they fit into that picture” (Anderson, 2013). In that respect, the company could see increased turnover, reduced productivity and a lack of trust in management and the company as a whole.
In the case of Charles Coffin, we see that his impact was letting employees have the freedom to be creative. He wasn’t an overbearing leader and by giving the employees the ability to create, adapt and manage themselves, he was able to boost the company’s market value to over $184 million. John Welch practiced some of the same values of Coffin and also saw increased value of the company in the billions during his tenure. He also encouraged employees to brainstorm while supplying them with the tools they needed to succeed. Without these two leaders, it is safe to say that General Electric would not be the company that it is today.
This exercise showed us how important leadership style is and greatly increased our knowledge in understanding the different leadership styles. All leadership styles can be effective if used appropriately. We were able to see how the leadership styles at GE evolved from 1892 to 2001 while our selected leaders were in command. At the beginning of GE, ideas and creativity were greatly valued and encouraged. Over the next several years, a more bureaucratic leadership style was used, which aligns with how most companies were functioning at that time. Although they were still doing well, it was when John Welch came in, and again used the idea of putting power and creativity back in the hands of the employees, that we really saw the business take off and reach new heights of success. Reginald Jones was one of those using a bureaucratic leadership style throughout the seventies and early eighties, which was common and successful throughout that time period. Each of our leaders experienced massive success throughout their tenure by adapting and challenging the business culture they oversaw.
Leaders of an organization and their leadership style have an enormous impact on the companies they work for for many reasons. In Management: An Integrated Approach, author Ranjay Gulati says it best when he says:
“By the nature of their role in the organization, leaders are held responsible for results. They also significantly influence the manner in which those results are achieved as well as the values that are upheld. Employees at all levels look to leaders for guidance about what is important, what is measured, and what is rewarded in the organization. Given that employees look to leaders for clues about appropriate behavior, leaders at all levels in an organization must comprehend the implications of what they say and do. In other words, as role models, leaders must be vigilant that their actions do not result in adverse consequences. The leaders of an organization often have the responsibility to ensure that the culture reinforces positive behavior.”
Leaders are the driving factor to success in all organizations. With their direction, support and communication, employees are able to meet goals, cultivate a company culture and set the standard for achieving success in the organization. General Electric, and their many leaders throughout the centuries, have fostered this idealization of leadership and thus, has contributed to their many accomplishments.
References
Anderson, A. (2019). Good Leaders Are Invaluable To A Company. Bad Leaders Will Destroy It. Retrieved 3 August 2019, from https://www.forbes.com/sites/amyanderson/2013/01/14/good-leaders-are-invaluable-to-a-company-bad-leaders-will-destroy-it/#4d81b0a81138
GULATI, R. (2018). MANAGEMENT + MINDTAP V2 MANAGEMENT, 1 TERM 6 MONTHS ACCESS CARD (pp. 216-217). Boston, MA: SOUTH-WESTERN
The Leadership of General Electric 