The purpose of research is to explore the importance of different form of organizational behaviour and its contribution to the organization effectiveness and efficiency. Researcher also tries to evaluate the significance of organizational form, culture, motivation, creativity and leadership to the overall development of organization. In the first part of research the researcher outlines the leadership theory and practices effectiveness. In the second part, the impact of organizational structures and culture on the effectiveness of the organization is explained. In the third part, the role of organization in improving employee effectiveness to create more business opportunities is being explained followed by the role of decision making in organization.
There has been considerable interest in leadership for centuries. People are always fascinated to know the personality and character of exceptional leaders and whether they brought social good or ill to their followers. It is possible to divide leadership research into three broad schools: Trait, Behavioural and Situational approaches.
This theory emphasized on understanding the leadership by traits included physical characteristics, such as height, social background, intelligence and a range of personality features. Bennis and Nanus (1985) established some relationship between the effectiveness of leadership and the traits of logical thinking, persistence, empowerment and self control. So, this theory emphasized mainly on the personal characteristics of leaders. This theory was only connected with the traits and every person has unique traits so understanding leadership was very different ad then behavioural theory was suggested.
This theory examines leadership behaviour particularly that influences the performance and motivation of subordinates. Emphasize is placed on leadership style. According to many research leaders and managers exhibited characteristics which were employees centred and or production centred. Recently these have been labelled to task and people. So, behavioural trait exhibits leaders with a strong orientation to both task and people issues. For example the Leadership Grid can be used to measure the success of leaders who have been categorized as Behavioural Leaders, numbers such as(1,5) or etc. will be used.
Fiedler (1967) suggested Contingency hypothesis “leadership behaviour interacts with the favourableness of a situation to determine effectiveness”. This theory requires the assessment of both the leader’s style and three broad characteristics of the situation: * Leader group member relations- loyalty and trust. * Task structure – clarity and understanding about goals. * Position power- a leader legitimate power to tell others what to do.
The example of the theory is Delegating style which is used to supervise tenured professors, who understand the job requirements but are given freedom to teach in the manner they believe is most effective.
Impact of Managerial Style on Organization effectiveness 1. Autocratic: In this style leader makes the decision and uses the information available at the time. Leader collects the information and then solves the problems. Its effects on organization are it increases in productivity when leader is present, more positively accepted in larger groups, increase turnover rates, increase aggression level among followers. This style is not fruitful for long term examples are Adolf Hitler and Martha Stewart. 2. Democratic: in this style managers consult subordinates before making any decisions and the information is collected by all the team together. This increases innovation and motivation among the employees and the style is followed by many organizations like Apple, Lumina Leisure group etc. Carlos Ghosn former president and chief executive officer, Renault, France; President and Chief Executive Officer,