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The Impact of Leadership Styles on Organizational Effectiveness Term Paper

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Updated: Feb 27th, 2020


As development is one of the key objectives of an organization, managers always strive to achieve this objective. Organizational development is highly dependent on issues like teamwork, management practices, and leadership styles.

Effective leadership helps managers to empower their workforce, and thus increases organizations’ productivity, supports the delivery of service quality, and eventually results in successful development.

Therefore, it is crucial that managers and chief executive officers concerned with management should employ good leadership styles that enhance teamwork and motivation among employees.

According to Iqbal (2013), some of the leadership styles that managers can use include authoritarian, democratic, Laissez-faire, and transformational styles. Outstandingly, it is impossible for managers to employ a single leadership style in management of employees and achieve objectives and goals of the organization.

As a result, leaders need to be competent and innovative so that they can utilize diverse styles of leadership depending on the conditions of organizations. Hence, this paper analyzes the leadership styles that the chief executive officer (CEO) of Hype Travel Agency uses in the management of the organization.

Leadership Styles of Hype Travel Agency (CEO)

Currently work with Hype Travel Agency, which is an organization that deals with tourism products such as expeditions, nature walks, cruises, and restaurants. The CEO of the company employs authoritarian and democratic styles of leadership in the management of the human resources.

Authoritarian style of leadership is applicable in instances that require directions and guidance on the part of the management. The CEO of Hype Travel Agency holds the belief that human resources perform well under minimal supervision.

Remarkably, leaders who use democratic leadership style believe that employees are capable of steering an organization to achieve its objectives and goals (Hamilton, 2007). Additionally, the CEO encourages the workforce of the agency to strive and achieve organizational goals, objectives, and visions.

The authoritarian leadership style applies only in situations that require the management to provide directions. Human resources sometimes need guidance on issues that concern the management of the agency. Therefore, the CEO issues directions and policies for the workforce to follow in effecting the vision of the agency.

Carroll (2011) states that effective use of authoritarian style of leadership and good communication enhances performance of employees. Thus, the blend created by the leadership style is very efficient and has led to increased production, teamwork, and good interrelationship among employees.

In my opinion, the combination of democratic and authoritarian leadership styles enhances my performance in the workplace. I am able to relate well with my colleagues and work as a team to achieve the objectives and goals of the agency. Therefore, the CEO is very instrumental in the attainment of successful development.

Organizational Structure and Culture

Hype Travel Agency has a practical organizational structure, which defines roles and operations of human resources and the management, details job specifications, and provides fair division of roles among employees.

Definition, specification, and division of employees’ roles and responsibilities enable the management to motivate its workforce, encourage performance, and increase productivity. Moreover, Hype Travel Agency has a very organized communication system that permits the passage of information from employees to management and vice versa.

Garber (2004) explains that a good organizational structure encourages specialization and flexibility of employees, and consequently, promotes coordination and supervision of employees’ performance. The culture of the agency encourages flexibility, supports teamwork, enhances motivation, and facilitates job specialization and interaction in the workplace.

The organizational structure of Hype Travel Agency is very effective in promoting teamwork and good relationship in the organization. Since the structure of the agency is organized and provides a clear distinction of roles that the human resources can undertake, employees have specialized in their duties and developed good organizational culture.

Organizational culture and good relationship among the employees lead to increased performance in various aspects of the organization such as production and delivery of services. Good organizational structure does not only increase consumer satisfaction through delivery of good quality products but also promotes employees’ motivation and communication (Kusluvan, 2003).

In addition, the agency champions for flexibility and good relationship among employees, which are very instrumental in improving teamwork, unity, and cooperation within the company.

Therefore, the approach of the agency towards organizational structure and culture, which encourage the development of corporate culture, improves my ability to acquire advanced relationship skills and build strong teams in the workplace that empower teamwork.

Ethical Conduct and Effective Communication of the CEO of Hype Travel Agency

The CEO of Hype Travel Agency believes in the effectiveness of teamwork among the managers and the employees. According to the CEO, employees have equal opportunities in the development and growth of the organization.

To achieve optimum performance from the employees, the CEO encourages individuals to be innovative and productive in their respective fields by generating novel ideas for the company to utilize. According to Carroll (2011), some of the activities that a leader can exercise include instilling ethical values and encouraging teamwork in an organization.

As a leader, the CEO acts as a role model and practices a number of ethical values such as respect, love, assertiveness, self-control, and hard work. Through the practice of these values, the management and the human resources easily follow and practice the values.

To enhance good communication within the agency, the CEO uses a simple communication system among the managers and the employees.

The simple communication system enables the human resources to relay their opinions, suggestions, and ideas to the management and at the same time facilitates the conveyance of information from the management to the employees.

Since the leadership style practiced in Hype Travel Agency is democratic and partly authoritarian, it promotes openness and good communication among the staff and the management.

Openness and good communication emerge because the democratic style of leadership encourages human resources to present their grievances to the management and creates a platform where employees and management can communicate effectively (Iqbal, 2013).

Consequently, good communication in the organization, effective leadership styles, and good leadership from the CEO motivates employees and make them feel that the agency values and appreciates their efforts.

Best Practices Used in Employee Motivation

Employee motivation is vital in the success of an organization as it ensures that human resources invest maximum efforts in the attainment of the organization’s goals and objectives. It is imperative that leaders motivate their workforce and devise strategies that boost their morale and enthusiasm.

Notably, motivated employees have high levels of confidence and strongly believe in themselves. Therefore, motivation of employees is an important strategy in enhancing productivity and growth of an organization (Garber, 2004).

Confidence and self-esteem are crucial in the delivery of good quality services to consumers as they emanate from courage instilled in employees who believe in their capabilities.

Some of the best practices that leaders can use in motivating their employees include providing effective leadership, communicating efficiently, and caring about the concerns of employees. Effective implementation of these best practices can greatly improve the levels of employees’ motivation in an organization.

Some of the potential benefits that accrue from the exemplary behavior of leaders who act as role models include increased trust, honesty, industriousness, and loyalty on the part of the employees and management. Trust, honesty, industriousness, and loyalty occur when employees realize that the management is leading by example.

According to Hamilton (2007), encouragement of employee participation and interaction through good communication is a very fine strategy of motivating employees. In addition, good communication facilitates passage of information among the management and the employees, which is essential in addressing challenges that reduce efficiency in organizations.

Good communication can improve the quality of services delivered by organizations for the delivery of information takes place quickly within the expected time. Valuing employees and addressing their concerns is very essential, as it creates a feeling in the minds of employees that the organization believes and appreciates their efforts.

Diversity in the Workplace its Challenges and Benefits

Technological advancements, increased education, and civilization have led to numerous transformations in many organizations. The transformation is dependent on the diversity of employees and consumers. Currently, organizations have become very diverse because they have employees with diverse demographics such as gender, race, and ethnicity.

Owing to the diversity of employees in organizations, leaders are facing challenges like harassment, exclusion, discrimination, stereotypes, and favoritism in the workplace. The main victims of these challenges include women and marginalized individuals from different racial and ethnic groups.

These challenges transpire due to inadequate levels of awareness or misconceptions that the employees nurture concerning their differences in terms of gender, race, or ethnicity. Productivity, quality of products, and motivation decrease if employees experience discrimination and harassment at the workplace (Kusluvan, 2003).

Conversely, smart leaders can use the diversity of employees to improve market share of their respective products and services globally. Since employees usually interact with consumers, their diversity can be helpful in boosting organizations’ quest to meet the diverse needs of consumers.

Effective Business Strategy that Addresses Workplace Diversity Challenges and Issues

Organizations need to develop a business strategy to curb the challenges and issues related to diversity in the workplace. Empowerment of employees on how to appreciate diversities related to gender, race, and ethnicity aids in reducing harassment, discrimination, and other challenges associated with the diversity in the workplace.

Additionally, organizations need to encourage good relationships among their employees and promote teamwork so that employees can understand each other, and consequently, appreciate their differences. Exemplary leadership is paramount since the employees emulate and exercise what their superiors practice.

The structure and culture of organizations should advocate for good relationships and exercise ethical and moral values like love, respect, assertiveness, and self-control. Effective implementation of this strategy helps in curbing the challenges and issues related to diversity in the workplace.


Managers should apply effective leadership styles and use advanced management practices for remarkable development to happen in organizations. Authoritarian, democratic, Laissez-faire, and transformational leaderships are some of the styles that leaders can use in optimizing employees’ performance.

Besides, managers can only optimize organizational performance if employees have interest in their roles and motivation in their duties. Therefore, it is very important that managers motivate their employees and encourage them to work hard.

Technological advancement, increased education, and mobility of human resources have increased diversity in workplaces. It is vital that managers should encourage teamwork and cooperation among employees in workplaces irrespective of their gender, race, and ethnicity.


Carroll, A. (2011). Business and Society: Ethics, Sustainability, and Stakeholder Management. New York: Cengage Learning.

Garber, P. (2004). 99 Ways to Keep Employees Happy, Satisfied, Motivated and Productive. New York: Business & Legal Reports, Inc.

Hamilton, C. (2007). Communicating for Results: A Guide for Business and the Professions. New York: Cengage Learning.

Iqbal, T. (2013). The Impact of Leadership Styles on Organizational Effectiveness. Munich: GRIN Verlag.

Kusluvan, S. (2003). Managing Employee Attitudes and Behaviors in the Tourism and Hospitality Industry. New York: Nova Publishers.

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