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What are the effects or impacts of leadership in organization?

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The impact of leadership is significant - both positively and negatively. Great leadership drives high performance and increased profitability whilst poor leadership can cause low morale, increased absenteeism and poor performance.

One of the main problems with leadership is that people are promoted due to technical proficiency and aren't given the tools that they need to become strong leaders. Recent research by the Chartered Institute of Personnel and Development has shown that 60% of businesses site leadership as the skill they need to develop in order to drive their business forward.

In my opinion great leaders are able to adapt their style according to the situation and people they are managing. It requires them to have strong self awareness and a high level of emotional intelligence so that they understand the impact that they have on others. It also requires them to create a culture of trust in their teams and be prepared to be vulnerable.

Leadership directly impacts on engagement. The Department for Innovation and Skills has reported that engaged employees are 43% more productive than disengaged employees. This makes it really easy to value the impact of positive and negative leadership in an organisation.
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