10 Ways That Effective Leadership Is Important.

effective leadership

Effective leadership is important for the growth and success of an organization because a true leader’ function is to provide direction, energize employers/followers and obtain their voluntary and sincere commitment in order to achieve departmental tasks and goals.

Leadership is a process by which both the leader and follower work together to get their needs satisfied. Here are 10 important roles that effective leadership play in an organization:

  1. Leaders create vision and set a direction for the organization.
  2. Leaders provide effective performance appraisal and good compensation for employees.
  3. They establish and define goals clearly for subordinates/followers.
  4. Leaders foster innovation and the attainment of long-term organizational goals.
  5. They acquire and manage human resources.
  6. They help in settling disputes among employees.
  7. Leaders influence and motivate employees to put in their best and move them toward the ideal future.
  8. Effective leaders maintain sound corrective measures in a workplace.
  9. Leaders create cohesive groups and teams that are required to meet the stated goals.
  10. Effective leaders improve the communication skills of his followers for a better interpersonal relationship.

Effective leadership in an organization creates a vision of the future that considers the legitimate long-term interests of the parties involved, develops a strategy for moving toward that vision.

How To Carry Out Your Organizational Planning Process In 7 Simple Steps.

The Planning Process comprises of seven (7) steps which may differ from one organization to another or from one situation to another.

These steps are:

  1. Identification of Opportunities: This involves a thorough analysis of the business environment in relation to customer wants, market, identifying organization’ strength, weakness, opportunities and threats (SWOT). It’s very important that the current position of the business is evaluated before establishing objectives.
  2. Establishment of Objectives: Long term and short term objectives are formulated for the entire organization and for each department. Objectives describe what is important to an organization and various sub-units. Objectives specify the expected end results to be achieved.
  3. Establishment of Course of Action: This step when taken, identifies promising alternative action plans to achieve the stated objectives. The success or failure in achieving objectives depends on appropriate action plans.
  4. Evaluation and Selection of Alternative Course of Action: These activities involve the examination and comparison of all action plans in line with established objectives.
  5. Allocation of Resources: Resources here refer to the popular 4Ms( money, machine, material, man). Managers should allocate resources to action plans selected to meet objectives. The amount of resources to utilize is controlled by the use of budget.
  6. Implementation of the Course of Action: Without proper implementation of a chosen course of action, the whole planning process is useless. For proper implementation, managers must delegate responsibility, give adequate authority, persuade and motivate subordinates, and guide their actions by formulating policies.
  7. Evaluation of Result: Where there is a plan, there must be control. Controlling involves measuring action results, comparing them with performance standards and making necessary adjustments where there is variation.

10 Reasons Why Business Planning is Very Important.

Business planning

The benefits of planning to an organization cannot be overemphasized. Planning projects an organization toward where it wants to be in the future.

Here are some importance of planning in any business or organization.

  1. Planning helps to identify the objectives and goal of any business. This can only be achieved in the long run.
  2. Organizations exist to tap into the opportunities in the environment and manage available constraints. These opportunities and threats are identified through the planning process.
  3. Planning facilitates effective control. Where there are plans, there must be control to check whether things work accordingly.
  4. Performance improvement: since planning involves selecting and implementing better course of action, it brings progress to the organization.
  5. Planning unifies employees’ actions toward the chosen objectives.
  6. It promotes proper coordination of organizational resources direction and sense of purpose.
  7. It helps the organization in area of cashflow. This creates room for proper cash management.
  8. It secures the means of funding by identifying the sources of raising capital and borrowing in starting up a business.
  9. It helps to support and lay a strong foundation on the growth of the business.
  10. Since planning is future-oriented, it predicts the future and offsets uncertainty.

Although planning is a continuous process, it is a method of accomplishing a predetermined result thereby attaining stated objectives within a time frame.