Primarily, leaders play a crucial work in the growth and operation of any firm. Additionally, leaders are always at the center of any company's goal, smoothening workers' daily tasks. Consequently, poor management often puts a firm at risk of losses and failed achievements. Although every organization strives to succeed, poor governance can lead to the company's downfall.
A leader failing to carry out their responsibilities properly can create rifts among their team. A leader who neglects to note the progress of their staff fails to recognize their accomplishments or is just plain unsupportive of their squad (Jung et al.). Such an ineffective leader can discourage and demotivate the team, who would eventually become less productive and reliable in their duties (Jung et al.). As a result, the company's daily operations would be affected and diminish its ability to succeed.
Furthermore, ineffective leaders can often create a competitive and hostile environment in the workplace. Poor leaders may attempt to take control of everything while disregarding the opinions of others and not allowing their team to collaborate (Jung et al. 56). Consequently, this can cause resentment among the workers, thus impeding teamwork and collaboration, which are essential in ensuring an accomplishment business.
On the other hand, poor governance can also cause financial losses. When leaders fail to make informed decisions or prioritize goals incorrectly, a business will likely face financial distress. Poorly managed budgets, inadequate financial control, and faulty investments can result in a company's inability to run effectively. Also, a lack of strategic planning or vision can cause the organization to make decisions that may not be in its best interest (Graves et al. 54). Thus, this is likely to weaken the business's competitive edge.
To sum up, leaders play a significant role in the achievement or failure of a company. In this regard, poor leadership can lead to decreased productivity, financial losses, and a lack of collaboration among the workers. Through practical and adept leadership, firms will be more likely to thrive in the long term. So, companies need robust and knowledgeable leaders to ensure their organization's achievement.
Graves, Laura M., Joseph Sarkis, and Natalia Gold. "Employee pro-environmental behavior in Russia: The roles of top management commitment, managerial leadership, and employee motives." Resources, Conservation and Recycling 140 (2019): 54-64. Doi.org/10.1016/j.resconrec.2018.09.007
Jung, Ki Baek, Seung-Wan Kang, and Suk Bong Choi. "Empowering leadership, risk-taking behavior, and employees’ commitment to organizational change: The mediated moderating role of task complexity." Sustainability 12.6 (2020): 2340. Doi.org/10.3390/su12062340
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