Professional Documents
Culture Documents
Sandra Jastrzembski
Dr. Madlyn Bonimy
11/14/2010
Leadership Roles and the Effects on Organizational Performance2
Introduction: Discuss the role of leadership and how it can impact organizational
performance.
Effective Leadership is the forefront of most organizations and strategic planning
exemplifies this philosophy (Hellriegel and Slocum, 2011, p.297). Organizational dimensions
such as leadership, culture, structure and processes are devoted to the effect of strategic planning
of an organization. Amongst the dynamic environment of the business world, it is necessary for
structure of an industry and its competitors in order to identify an optimal position. Furthermore,
must incorporate some attention to the hypothesis that leadership is of substantial importance.
leadership. This includes how effectively leadership communicates and translates the vision and
strategy of the organization to its members. How well the organizations goals, objectives, and
strategic focus is carried out by its members, how focused the leadership of the organization is in
utilizing collaboration skills, and the ability to remain flexible in motivating others with an
appeal to the common interests of the organization. Motivation is imperative as to how effective
leadership articulates the organizations performance through the needs of others and inspiring
therefore, can be theorized that leaders help shape organizational culture and, thereby,
performance.
Performance of the organization can be measured by its strategic direction and extent of
the organization over the long-term. The leadership, therefore, can substantiate successful
performance of the organization through their strategic planning and focus on resources within a
challenging environment to meet the needs of that organization and subsequently, fulfill
stakeholders’ expectations.
Discuss Mulally‘s leadership style at Ford Motor Company and provide examples of how
his actions fit this style.
Transformational Leadership starts with the development of a vision, a view of the
future that will excite and convert potential followers. The Transformational Leader seeks
overtly to transform the organization; there is also an implicit promise to followers that they
likewise will be transformed in some way, perhaps to be more like this amazing leader
(Hellriegel and Slocum, 2011, p.329-333). In some respects, then, the followers are the
product of the transformation. Alan Mulally, CEO of Ford Motor Company, assumedly
Company as a leader with zeal and a tenacious agenda; a Transformational Leader often
charismatic, but not as narcissistic as pure Charismatic Leaders (Hellriegel and Slocum, 2011,
individuals continually change themselves; they stay flexible and adaptable; and continually
improve those around them. The transformational leader encourages followers by acting as a
role model, motivating through inspiration, stimulating intellectually, and giving individualized
Alan Mulally encourages participation from all including, executives and managers, and
clearly conveys amidst his weekly staff meetings. In an articulated commitment of service to
each division his agenda illustrates belief in others that unites the organization.
accomplishment. This dynamic and innovative leadership style challenges and motivates an
entire organization, top to bottom. Alan Mulally puts passion and energy into everything, from
his previous role with Boeing and his current stand at Ford Motor Company. This type of
leadership cares about people and wants them to succeed. The result is individual, group, and
To be able to energize employees to fulfill corporate objectives to achieve those visions and
missions should be more than a sign on the wall (Hellriegel and Slocum, 2011, p.192-193).
Ford Motor Company was the only major auto manufacturer that did not pursue government
bail-out (Song, 2008). To choose a direction, an executive must have developed a mental
image of the possible and desirable future state of the organization. This image, which is
statement. Executives and managers should live the vision, be seen executing the objectives to
achieve those goals, and constantly communicating the objectives to achieve those goals with
their employees.
A goal is a long range endeavor for a specified period; it must be specific and realistic.
Long range goals set through strategic planning are translated into objectives and activities that
will ensure reaching the goal through operational planning. The major outcome of strategic
Leadership Roles and the Effects on Organizational Performance5
planning, after gathering all necessary information, is the setting of goals for the organization
based on its vision and mission statement. The vision of Ford Motor Company is simple yet
powerful, 'to become the world's leading consumer company for automotive products and
ideas and vision as he did with Boeing, Mulally exhibited his innovation that comprised the
adoption of ideas from outside the Ford organization in conjunction with the generation of those
ideas from within Ford Motor Company (Song, 2008). The message he portrays involves
planning initiation, execution, selection, and implementation of the objectives to achieve the
goals set forth by his administration. Focusing on fewer products to produce sustainability
improvement and service innovation involving the introduction of a service that is new or
substantially improved conveyed his characteristics for the agenda to achieve the goals of a new
and improved Ford Motor Company. The success of an innovation is connected to a market
forecast of customer needs and wants as well as effective management of the innovation
process. Alan Mulally’s focus for Ford Motor Company emphasizes on “One Ford – One
Team, One Plan, and One Goal”. He has high regard for executive management and maintains
open communication, in addition to his charismatic mannerism (Hellriegel and Slocum, 2011,
p.543-545).
Mulally has portrayed an agenda to serve and satisfy not only customers, but employees
as well, increase market share, increase profits, and communication is at the top. As a result,
Leadership Roles and the Effects on Organizational Performance6
every successful business requires effective leadership to fully utilize the skills of staff in order
to achieve the aims of the business and communication is a key attribute to a successful leader
Evaluate the effectiveness of Mulally’s leadership style and recommend whether he should
continue with this style, or use a different style.
Alan Mulally has a proven effective leadership style. He is persistent with innovative
processes that address numerous issues within the organization to ensure successful
include reducing the sense of risk; managing the customer interface; training and managing
staff performance; and engaging Ford’s executive team. Collaboration and innovation are the
foundation of Ford’s work in areas ranging from electric vehicles to human rights in the supply
chain. As Ford Motor Company has a proud heritage of improving, Mulally has proven the
adaptability of his leadership style to fuse with situational set-backs in economic turmoil (Song,
organizations begin the process of repositioning their assets and liabilities to move forward
Highlighting how successful this tactic can be, Mulally has cemented his reputation as
one of industry’s great leaders; it is well worth paying attention to what he says, after all, it is
extremely rare for one leader to play a major role in two of the world’s top industries. As
synthesis and embraced digital technology; he also made Boeing a model for global
manufacturing and guided the company through the aftermath of 9/11, which almost crippled
the aerospace industry. Moving forward to 2010 and he is just as successful tackling the
Leadership Roles and the Effects on Organizational Performance7
challenges facing the auto industry and Ford Motor Company through the Great Recession
(Song, 2008).
Communication is the key to any successful leader. Everyone has to know the plan, its
status, and areas that need special attention. It is essential that leaders model that behavior they
expect from others. These are challenging times to be a leader and, in the future, whether it is a
geographic crisis, financial crisis, energy crisis or environmental crisis, turbulence will be the
new norm but, if one can learn from the experience of a leader such as Alan Mulally, an
References
Hellriegel, D. and Slocum Jr., J.W. (2011). Organizational Behavior. Mason, OH: Cengage
Learning.
Song, K.M. (2008). Business & Technology: Boeing’s Mr. Nice Guy: Alan Mulally steps into