Leadership Effectiveness In Organization

Final Paper Organizational Behavior

Lecture: Dra. Anita Lestari, M.Si

By :
Muh. Sirojuddin Amin
15/391823/PEK/21269

MAGISTER OF MANAGEMENT
FACULTY OF ECONOMIC AND BUSINESS
UNIVERSITAS GADJAH MADA

I.

INTRODUCTION

In the process of achieving organizational goals, strategic ways or steps are

necessarily needed to be taken by the entire member of the organization. The steps will not be
working well without a good corporation from the member of the organization, that is why it
needs coordination among lines and it takes a figure of leader to lead the process of achieving
the goal. In other word, the most important aspect needed in order to reach a certain goal is
leadership. Leadership can be defined as a process of social influence from the up line toward
the down line to make the organizations mission comes true.
Leadership is very important in an organization because a good and effective
leadership have to be able to build, to stimulate, and to promote cultures in organization in
order to achieve the goal. The importance of effective leadership takes good productivity,
work satisfaction, group work, well-organized activity, spirit of the worker and coordination
to reach the aim of an organization. Trust building toward a leadership is the duty and
responsibility of the leader. Without trust, productivity will run down, chances for
development will be missed, and performance will be decreased. The components of a
leadership are there has to be a leader, the capability of the leader to make a move to reach
organizations aim, follower or people under the authority of the leader, a certain goal to
reach, and the organization itself. These 5 components are significant in an organization, in
case one of those five components does not work, the organization will not run well.
From the explanation above, it needs a study concerning on leadership, so it can be a
reference for leaders or organizations on how to reach the goal.

II. THEORY
Leadership is one of the most important components in an organization. The role of a
leader in organization is significant to define the achievement of the organization. According
to Kinicki and Fugate (2012: 364) leadership is defined as a social influence process in
which the leader seeks the voluntary participation of subordinates in an effort to reach
organizational goals. Hasibuan (2006:43) defined a leader as seorang dengan wewenang
kepemimpinannya mengarahkan bawahannya untuk mengerjakan sebagian dari pekerjaannya
dalam mencapai tujuannya. In fact, a leader must have a part in making decisions because
basically, employees or workers have different point of views and different characters. This
decision making will make the decisions taken significantly and related in organization are
used as a consideration for organization strategy making. Leader as a organizer can direct,
develop, influence, and work together in order to make organizations goal comes true. An
organization must have a leader and several workers who are responsible to organize the
tasks together to get maximum result as it is formed at the beginning. There are several
indicators for someone to be defined as a leader, or commonly known as leader trait.
Leader trait are physical characteristics that can be used to differ leader from employee.
Kinicki and Fugate (2012: 365) stated that there are five traits, they are: (1) Intelligence, (2)
Dominance, (3) Self-Confidence, (4) Level of energy and activity, and (5) Task-relevant
knowladge.
According to Rivai and Mulyadi (2010:7), there are four approaching theories
included in leadership, they are:
1. Pendekatan berdasarkan sifat-sifat kepribadian, sosial, fisik atau intelektual yang
membedakan pemimpin atau bukan pemimpin. Kepemimpinan itu dibawa sejak lahir atau
merupakan bakat bawaan. Misalnya ditemukan enam macam sifat yang membedakan
antara pemimpin dan bukan pemimpin yaitu ambisi dan energi, keinginan untuk
memimpin, kejujuran dan integritas, rasa percaya diri, intelegensi, dan pengetahuan yang
relevan dengan pekerjaan.
2. Kepemimpinan berdasarkan pendekatan tingkah laku tertentu yaitu yang membedakan
antara pemimpin dan bukan pemimpin. Maka yang melahirkan pemimpin bisa dengan
mendesain sebuah program khusus.

3. Kepemimpinan berdasarkan pendekatan kemungkinan atau situasional bukan berdasarkan

pada sifat atau tingkah laku seorang pemimpin akan tetapi efektivitas kepemimpinan
dipengaruhi oleh situasi tertentu, demikian pula pada situasi yang lain memerlukan gaya
kepemimpinan yang lain pula.
4. Kepemimpinan pendekatan kembali kepada sifat atau ciri dari suatu perspektif yang
berbeda yaitu melainkan didasarkan pada kemampuan seorang pemimpin dibandingkan
dengan orang lain.
There are 8 types of leadership that are commonly used, they are:
1. Autocratic Leadership Style: In Autocratic Leadership, a manager retains as much power
as possible. It involves decision making and passing them to the subordinates. Employees
are expected to follow the orders without soliciting any explanations. Employees have
little opportunity to give suggestions even if is for the welfare of the organization.
Autocratic Leadership has been greatly criticized as it leads to high levels of absenteeism
and staff turnover. On the other hand, it could prove effective to train new staffs who do
not know the tasks and the procedures.
2. Bureaucratic Leadership Style: In Bureaucratic Leadership, managers are governed by the
rule book. They strictly abide by the rules, policies and procedures. Managers expect the
same from their followers. The restraint and discipline enforced can curtail their freedom
and creativity. However, this style of leadership proves to be effective for employees
working on routine tasks, handling sophisticated items etc.
3. Democratic Leadership Style: Democratic leadership style or participative style is the most
popular leadership style from the perspective of an employee. Employees enjoy the
confidence of their leaders and are invited to contribute to the decision making process. It
increases their job satisfaction and develops a sense of personal growth. It also yields high
quality of work and boosts the staffs morale by allowing them to accomplish their goals.
For democratic leadership style the only drawback lies in the fact that it is a time
consuming affair.
4. Laissez-Faire Leadership Style: Laissez-Faire literally means leave alone to act freely.
In this style of leadership, the managers provide little or no direction to the employees. In
fact the authority to determine the goals, making decisions and resolving problems are
vested with the employees and they enjoy the maximum freedom. This sort of leadership

style is applicable for highly experienced employees and also for employees working in a
creative organization like that of fashion designing.
5. Charismatic Leadership Style: Charismatic leaders gather followers by virtue of their
personality and charm. They do not use authority to force followers to obey their orders.
They make best use of their body language and persuasive skills to arouse a sense of
enthusiasm in the minds of their followers. The presence of the leader, the way he handles
things can be seen as success in the eyes of the followers. Thus a charismatic leader carries
lot of responsibility to satisfy the demands of his followers.
6. Transformational Leadership Style: Almost the same as charismatic leadership style. The
only difference lies in the fact that the transformational leader focuses on transforming an
organization whereas charismatic leader does not change anything. In this leadership style,
the managers instill lot of enthusiasm in their teams by adding value with positive
contribution. Transformational leader understands the strengths and weaknesses of his
followers and assign tasks that optimize their performance. It is gaining importance in
recent times and is being adopted in many western societies.
7. Transactional

Leadership Style: This type of leadership style largely involves

implementing managerial activities, as it starts with the idea that team members will abide
by the leader. Moreover, the leaders have the right to punish the team members if they find
the working standards do not comply with the required standard. In this case, the leaders
follow reward for better work policy. This type of leadership style is suitable for short
term tasks.
8. Servant Leadership Style: The term was originally coined by Robert Goldleaf in 1970s.

According to this style of leadership, the leaders achieve results by focusing on the needs
of their peers and their bosses. They would look at the needs of the people and work
towards solving their problems and foster personal development.
Siagian (2007:47) argued five functions of leadership which are:
1. Pemimpin sebagai penentu arah, yaitu sebagai penentu arah yang hendak ditempuh oleh
organisasi menuju tujuannya sedemikian rupa sehingga mengoptimalkan pemanfaatan
segala sarana dan prasarana yang tersedia.

2. Pemimpin sebagai wakil atau juru bicara, yaitu pemimpin merupakan puncak organisasi
menjadi wakil dan juru bicara resmi organisasi dalam hubungan dengan berbagai pihak di
luar organisasi.
3. Pemimpin sebagai komunikator yang efektif, yaitu suatu proses pemeliharaan hubungan
yang baik ke dalam maupun keluar oleh seorang pimpinan melalui komunikasi baik lisan
maupun tertulis.
4. Pemimpin sebagai mediator yang handal, yaitu seorang pimpinan yang berfungsi sebagai
mediator dalam menyelesaikan situasi konflik yang mungkin timbul dalam satu organisasi,
tanpa mengurangi pentingnya situasi konflik dalam hubungan keluar yang dihadapi dan
diatasi.
5. Pemimpin sebagai integrator yang aktif, yaitu kepemimpinan berfungsi sebagai penyatu
dari berbagai individu dan kelompok yang berbeda pola pikir dan cara bertindak yang
berkotak-kotak menuju pada tujuan bersama.

III. DISCUSSION
Leadership is importantly needed in an organization in order to reach organization
goal. There are a lot of leadership types that can be used in organization. Each types
consisting both weaknesses and strengths. Here are some studies about leadership in an
organization.
A study by Chuang (2013) stated, Due to globalization, technologic innovation, and
demographic changes, international organizations are seeking effective leaderships for
diverse work force management. Leadership in such global environment conditions involves
cultural awareness, global mindset, interpersonal skills, and effective manager-employee
relationships. Global leaders need to develop leadership skills demanded in a global context.
Eleven essential skills for leadership effectiveness in the diverse work place development
were identified in this study for global leaders who intend to (a) cultivate human potential of
employees, (b) enhance the overall organizational performance, (c) take social responsibility,
and (d) obtain skills in international leadership and cross-cultural human relations. The basic
premise is global leaders need to constantly update their leadership knowledge, skills, and
abilities for effective leadership performance in diverse workplace development and crosscultural management, as well as for the competitiveness in the global market.
International business management and human resource development communities
would be beneficial by continually exploring and empirically investigating the essential
leadership skills for global leaders. Future research that compares global leadership strategies
across international organizations from various countries will be of great value to global
leadership practice. Another avenue forfuture research involves the use of qualitative methods
to examine dynamic cross-cultural competencies on virtual working environments, which
may further explorethe global dimensions of leadership development practices.
According to the study above, a leader is demanded to master the condition of global
environment in his leadership. The global environment is including culture awareness, global
mindset, interpersonal skill, and an effective relationship between the leader and his
employee. When a leader is able to master the condition of global environment, he will also
be able to effectively lead an organization. He can make a proper decision because it refers to
the global environment. The decision will be taken considering many things that probably
influence the organization.

A study conducted by Carrigan (2013) showed Winning organizations understand the

significance of motivating employees and maintaining that motivation over the life of the
business. Motivation effects productivity, employee orale, customer satisfaction, and profits,
to name just a few. Its success depends on their ability to identify and meet the needs of their
employees. It is important for managers to build trusting relationships that facilitate open
communication and cooperation within departments and up and down the organizational
chart. The majority of the literature concluded financial rewards can be effective in
demonstrating appreciation but falls short as a lasting motivator. Intrinsic rewards have,
however, been determined to be most satisfying and motivating over the long term. Intrinsic
motivators such as development, empowerment, organizational identity and meaning,
recognition, and performance management were all discussed in order to illustrate the variety
of tools organizations can implement for the purpose of increasing motivation.
From the previous studies, it can be concluded that what can make leadership run
effectively in an organization is a leader who is able to motivate his employees to be more
productive at work. Besides, the capability of the leader to indentify and to fulfill the needs of
his employees is also needed. The fulfillment of the needs will help to build trust between the
leader and the employee so that there will be an open communication and corporation among
lines in organization.
A study by Sethuraman and Suresh (2014) stated, The selection of an appropriate
leadership style depends on the situation as well as the personalities of leaders for
influencing. Knowing and understanding the different types of personality preferences of a
leader, can form the basis of a leadership style which will result in high probability of
success. This will also help the leaders to flex their leadership styles appropriately as and
when there is a need. It is found that an leadership style need not be inborn, but can be
developed.
Based on the study above it can be concluded that a proper leadership is based on the
situation and how a leader influence the employee. Knowledge about many types of leader
personality will also influence someones leadership style, the more a person know the higher
level of success a person will get in leading organization. It is because he is able to analyze a
problem from many points of view so the decisions he makes are also varied.
A study by Redick, Reyna, Schaffer, and Toomey (2014) said, Through this research
it is clear that leaders should generate a personal leadershipphilosophy. Leaders have a

platform of power than should encourage and enable their teams toperform cohesively and
collectively. Also, it is evident that various skills of leadership strategyare required; these can
be learned through dedication and persistence. Through this process welearned that
adaptability and commitment along with a desire to succeed are essential, as areinterpersonal
skills. Most importantly, we learned that getting the project members to work as a team is
perhapsthe greatest challenge a leader will face. It requires a strong leader to be able to
facilitate the team bonding and team culture required to make a project successful. It is also
important to note that being a boss does not necessarily make a leader-bosses manage,
whereas leaders inspire. In orderto be an effective leader in this sense, the components we
explored revealed that the leader mustbe willing to use authority effectively and efficiently
while building relationships amongst team members, thus growing trust. Anyone can manage,
but not everyone can lead. One of the most important things to remember as a leader is that
there is not a black-and-white answer for what makes a successful leader. There are shades of
grey in many styles, techniques and skills that canblend together in numerous ways to
develop a successful and inspiring leader.
Through the analysis of project management and leadership research and development
it is clear that successful project managers must be able to exhibit interpersonal and
intrapersonal competency skills in order to lead and develop project teams. The Four-Factor
Model of Effective Project Leadership provides the foundation from which project leaders
should establish their thoughts, intentions, and actions in order to accomplish the end goal of
their project as well asenable their team to be successful. The management and leadership
skills assessed and discussed throughout this paper provide the groundwork for team leaders
to not only make a positive impact within their respective organizations, but also lead their
team towards successful project-basedresults. This paper has striven to provide a
comprehensive look at what it takes to be a successful and effective leader. A wide-angled
approach was taken by looking into the subsections of the Four-Factor Model for Effective
Project Leadership Competency to try and create a cohesive picture of what it takes to be a
high-performing project manager and leader.
This study indicates that a leader should have a leadership philosophy. A leader has
dominance and power to influence the employee. Besides, leader also needs various strategic
skills. It can be learnt through dedication and perseverance. A powerful leader is also needed
to facilitate team bounding and team culture which is needed to set the goal.

A study conducted by Paustian, Walker and Woehr (2014) stated that This metaanalysis contributes to a recent debate in the literature regarding gender advantages in
leadership effectiveness by showing that when all leadership contexts are considered together,
thereis a nonsignificant gender difference in leadership effectiveness. More important, this
study answers a call in the literature to examine the influence of contextual moderators
developed from role congruity theory (Eagly & Karau, 2002) and some additional theoretical
frameworks.
The result of this study shows that both men and women have the same right to be a
leader. Gender is not a major issue in leadership. Sometimes it needs a woman figure as a
leader in an organization. The feminism character of a woman can be used as a reference in
certain decision making. For example, when a company is about to launch a product, natural
characters of woman can be put in the product specification to convince consumers
perception to buy the product.

IV. CONCLUSION
From the previous explanation, there are several types of leadership with weaknesses
and strengths for each type. The effectiveness of leadership is not based on certain type. Most
business organization does not rely on only certain type of leadership because it would be
risky if someday that type of leadership is not suitable anymore to be applied. They usually
combine several types of leadership to reach the goal of the organization. Leadership is
commonly relied on personal skill, position, situation and condition.
The capability of someone to lead can be acquired by blood, which means that person
was naturally born to lead. Leading capability can also be acquired through process, which
means a person is intentionally trained to be used to lead others, and to be used to make
decision in organization.
Position factor here is domination structure which is possessed by a leader. This factor
cannot be avoided, moreover in this modern life everything seems to be well-structured. If
there are two persons with good leadership ability but one of them has position, the other one
will be defeated. Or both of them have power but in different level, the influence they spread
will be different.
Situation here means the condition that includes leadership behavior. When the
situation become chaos it will be more effective if there is a charismatic leader. If the problem
faced by organization is the difficulty to move forward because the member does not have
progressive personality, it needs a leader with transformational leadership style. If the
organization wants to show a religious identity, a leader with spiritual and religious skill will
be significant. That is how situation work in defining a leader, it select and choose leaders
skill whether it comes at the right time or not.

V. REFERENCES

Carrigan , M. D. 2013. Performance Appraisals: Demotivation vs. Motivation. Journal of

Leadership and Organizational Effectiveness, Volume 1, Number 1.
Chuang, S.F. 2013. Essential Skills For Leadership Effectiveness In Diverse Workplace
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Kinicki, A., & Fugate, M. 2012. Organizational Behavior. New York: Fifth Edition, McGrawHill Education.
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Paustian, S. C., Underdahl, Walker, L. S., & Woehr, D. J. 2014. Gender and Perceptions of
Leadership Effectiveness: A Meta-Analysis ofContextual Moderators. Journal of
Applied Psychology Volume 99, Number 6.
Redick, A., Reyna, I., Schaffer, C., & Toomey, D. 2014. Four-Factor Model for Effective
Project Leadership Competency. Journal of IT and Economic Development 5(1).
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Siagian, Sondang P. 2007. Manajemen Sumber Daya Manusia. Jakarta: Edisi Pertama,
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