Impact-of-leadership-on-organizational-sustainability-2-1

Impact of Leadership on Organizational Sustainability 1

IMPACT OF LEADERSHIP ON ORGANIZATIONAL SUSTAINABILITY

Student’s name

Code & Course

Professor’s name

University

Cit

Date

Impact of Leadership on Organizational Sustainability 2

Contents

1.0 Introduction ............................................................................................................... 3

2.0Transformational Leadership Theory .......................................................................... 3

3.0 Charismatic Leadership Theory ................................................................................ 6

4.0 Leadership, Gender and Diversity ............................................................................. 7

5.0 Global strategic leadership ........................................................................................ 9

6.0 Leadership development ......................................................................................... 10

7.0 Leading Teams and Others ..................................................................................... 11

8.0 Conclusion .............................................................................................................. 12

9.0 Reference List ......................................................................................................... 13

Impact of Leadership on Organizational Sustainability 3

Impact of Leadership on Organizational Sustainability

1.0 Introduction

In the current information age, organizational management has been refined to

accommodate minute details which are comprehensively discussed and executed in

order to meet organizational requirements and goals. Among the issues that have

grown in importance in organizations globally is sustainability which currently covers

different aspects including social, political, legal, economic, environmental and

technological aspects. Sustainable development is currently the present challenge in

organizations and has been strategically integrated into leadership to comprehensively

influence in organizations (Benn et al, 2014). Sustainable development in organizations

means that organizations are striving to change their current modes of operations to

better statuses of operations that are beneficial to the current workforce as well as the

future one (Benn et al, 2014).

Sustainable leadership encompasses responsibility over individuals, groups, an

organization as well as a society (Epstein & Buhovac, 2014). Additionally, sustainable

leadership involves responses to the organizational environment and strives to maintain

and employee force that is loyal to the organization. Maintaining sustainability in

leadership requires that all organizational policies, operations and values be linked to

sustainability (Dillon et al, 2014). Over the years, there have been different approaches

to leadership used in different organizations to execute the goals of the companies.

These leadership strategies continue to evolve with respect to increased information

and evidence of strategies that have worked. In response to the impact on

organizational sustainability in Coca-Cola Company, this retro respect paper seeks to

discuss different types of leadership theories applied in the company as well as the

leadership themes used in the management of the successful brand with regards to

sustainability.

2.0Transformational Leadership Theory

Transformational leadership has been linked to the success of CEOs (Zhang et al,

2015), the effectiveness of managers in the middle level of organizations (Ou et al,

Impact of Leadership on Organizational Sustainability 4

2014), leadership across cultures (Muenjohn & Armstrong, 2015) leadership in the

military among other studies. Transformational leadership is primarily defined as an

approach to leadership that causes a shift in individuals and social systems (Wang et al,

2017). The theory on transformational leadership was first introduced by Burns (1978)

who pointed out the differences between management and leadership as attributed to

different behavior and characteristics (Wang et al, 2017). Basically, transformational

leadership promotes change among the followers with the ultimate goal of making

leaders from followers. This type of leadership encourages positivity and valuable

change. In transformation leadership, the morale, motivation and performance of

followers are enhanced through diverse ways. Among these mechanisms are the

connection of the follower’s sense of identity to the mission and the overall

distinctiveness of the organization. Additionally, the motivation and performance of

followers can be enhanced through inspiring them by acting as role models and

challenging followers to be accountable for their work. Transformational leadership

moreover recognizes the strengths and weaknesses of followers so that tasks can be

aligned based on their performance. There are different components of transformational

leadership including consideration of an individual, intellectual stimulation, inspirational

motivation and idealized influence (Kark &7 Shamir, 203). Individual consideration takes

into account the extent to which the leader pays attention to the needs of the follower

through coaching and listening to the concerns and requirements of the follower. In this

element, the leader is empathetic to the followers and provides support. Additionally,

communication between the leader and the followers is open and there are challenges

placed upon the followers. This element furthermore emphasizes on individual respect

and appreciation of the follower on the contribution that the follower makes to the team.

The element describes the followers as having intrinsic motivation to carry out their

tasks.

The second element in transformational leadership is intellectual stimulation which

describes the degree to which assumptions by the leader are challenged. The leader

takes risks and invests in the ideas of the followers. Moreover, creativity is encouraged

and independent thinkers are nurtured. The first two elements on individualized

consideration and intellectual stimulation apply to the Coca-Cola Company where there

Impact of Leadership on Organizational Sustainability 5

is a corporate culture that appreciates the individual contribution and encourages

growth through empowering its employees (Coca Cola, 2017). Through concentration

on the talent and skill of its employees as well as the unique characteristics of every

country, Coca-Cola Company has sustainably shown evidence of its social

responsibility through target advertisement and activation on different levels based on

the countries of operation (Coca Cola, 2017). The subsequent element as discussed in

transformational leadership is inspirational motivation which is the extent to which the

leader challenges followers with high expectations and communicate positively about

upcoming goals. The leader additionally gives meaning to the task to help the followers

have the motivation to move forward. Empowerment of employees is high in Coca-Cola

Company and the leadership allows for ideas from their followers as well as nurturing

them (Coca Cola, 2017). Coca-Cola Company is known for its work culture of

challenging people to think diversely and be inspired to be significant. The fourth

element in transformational leadership is an idealized influence which offers an

exemplary model for outstanding ethical conduct and behavior that gains trust and

respect as well as instilling pride. The Coca-Cola brand is known for its distinctiveness

and its employees as well as consumers of the brand pride themselves on the unique

products and services as well as the feeling of belonging that the brand provides. The

elements discussed above portray this company as an organization that has taken up

transformational leadership in its operations and execution of sustainability.

It is noteworthy to establish the benefits of transformational leadership in a company as

they create unique advantages for the organization. According to Burns (1978),

transformational leadership develops exceptional people skills which are beneficial to

the organization in terms of motivating employees to be productive in their tasks (Wang

et al, 2017). Furthermore, the transformational leader has a high ability to retain

employees as they feel comfortable and proud to be working in the organization through

the confidence instilled in them. Further benefits include new initiatives that can be

adopted by the organization to enhance its operations as well as corporate learning

which improves outcomes of current employees and equips them for fruitful work. As

seen from the exceptional performance of Coca-Cola Company across different

countries, transformational leadership has played a great role in sustainably defining the

Impact of Leadership on Organizational Sustainability 6

organization through different aspects including economically, socially and politically in

their business. Criticism of transformational leadership, however, has to be taken into

account based on different studies and experiences from a business that provide

alternative thinking to the theory. According to Jolley (2015), transformational leadership

cannot be taught easily due to the comprehensiveness of the elements. Jolley (2015)

furthermore states that transformational leadership may easily result in abuse of power

and as such provide an avenue for unethical practices. There is an immense argument

about the lack of clarity of the definitions and components of transformational leadership

which have been debated as seemingly overlapping each other. Ciulla (2014) moreover

states that the leadership style is more of personal attributes as opposed to particular

requirements for a leader.

3.0 Charismatic Leadership Theory

Charismatic leadership involves a strong personality and attributes of a leader where

followers attracted to the leader due to this quality (Dillon et al, 2014). In current

leadership scenarios, the personality of the leader in an organization strongly affects the

corporate image of the organization (Antinakis & House, 2013). Charismatic leadership

works through reliance of followers upon the charismatic leader. Among the

characteristics of charismatic leadership is the control that the leader has overt the

performance of the organization as he or she establishes opportunities for the followers

(Dillon et al, 2014). Charismatic leadership additionally entails the presence and

dependency upon the relationship that exists between the leader and the followers. The

leader provides opportunities for the followers and has the ability to motivate these

followers to follow through with the drive to achieve the goal for the organization (LePine

et al, 2016). In charismatic leadership, the relationship between the leader and the

follower is significant as the two have to coexist for this leadership approach to work.

The attributes of a charismatic leader include self-confidence, extraordinary behavior,

strong faith in their vision, seekers of change, image builders, role models, the

inspiration of the motives of followers and the articulation of goals (LePine et al, 2016).

The benefits of having charismatic leadership in a company include a single vision that

the entire organization can focus on. Charismatic leadership moreover creates a

Impact of Leadership on Organizational Sustainability 7

cohesive workforce that is dedicated towards meeting the goals of an organization. In

charismatic leadership, the leader helps the members of the organization to clearly see

the goal and addresses any gaps between what the organization is required to deliver

and the performance of the organization. The previous CEO of Coca-Cola Company,

Muhtar Kent had several charismatic attributes including self-confidence and strong

faith in his vision to see the company at the top of the industry which was ultimately

achieved as the organization has succeeded in carrying out sustainable business over

the years (Banks, 2016).

The strengths of charismatic leadership include the inspiration that the leaders give their

followers to work together. Organizations with charismatic leadership moreover have a

purpose that drives them towards the completion of the company goals. Muhtar Kent’s

era as the CEO of Coca-Cola saw a dedicated team of employees who worked with

passion to maintain the reputation of the brand and provide quality products and

services which made the company a leader in the industry (Banks, 2016). The

weaknesses of charismatic leadership, on the other hand, include too much

dependency on the leader which devalues the contribution of other members of the

organization as all the importance goes to the leader. The charismatic leader may also

assign himself too much self-importance which undermines the priorities of the

company as the leader will only care about his personal success. Charismatic

leadership is often affected by the absence of leaders that could succeed the position

since charisma is not a general quality that can is possessed by everyone or one that

can be learnt (Grabo et al, 2017).

4.0 Leadership, Gender and Diversity

Sustainable leadership has bettered the concept of appreciation of diversity and gender

at the work place through advocating for policies such as equity (Boulouta, 2013).

Leadership has a great impact on the corporate culture towards the treatment of the

different genders and persons from diverse backgrounds (Boulouta, 2013). Most

employees will treat their colleagues based on how their leaders approach them. It is

therefore upon leaders to encourage change through leadership styles such as

transformation to achieve equal treatment and opportunities in the workplace. Despite

Impact of Leadership on Organizational Sustainability 8

there being an improvement in the treatment of women at the workplace and

appreciation of different backgrounds, there is still more that can be done to make work

conditions comfortable for every employee. Challenges that affect the sustainable

leadership practices regarding gender and diversity include rigid beliefs by the senior

leaders of the company, strict cultures in different countries, little information on

progressive leadership and unethical behavior (Western, 2013).

Management of diversity covers the social, economic and moral aspects and needs to

be accounted for through evidence from the workforce and creation of a culture that

respects diversity. Coca-Cola Company has diversity policies that promote inclusion of

diversity in their operations and treatment of their employees (Coca Cola, 2017). The

company has a diversity library and diversity education programs that provide

considerable opportunities to the entire workforce. In the current year 2017, a parental

policy has been introduced that offers paid paternal and maternal leave (Coca Cola,

2017). In 2013 Coca-Cola Company recognized the impact of women in leadership and

has since then adopted inclusion of women in senior management (McElhaney & Smith,

2016). There has also been a strategic prioritization of women in recruitment,

advancement and development. This move has increased Coca Cola’s initiative in the

global representation of women.

Leadership that encourages diversity in the workplace has a stronger employee force

and better performance in the industry (Randel et al, 2016). Employees from different

backgrounds and different genders are able to advice on diverse customers as they

have an ingrained knowledge of the preferences of these clients (Randel et al, 2016).

Diversity, therefore, saves costs for the company that would have gone into extensive

research since the management gets to have first-hand information. Gender differences

and diversity may, however, have negative impacts due to conflicts of interest such as

cases where women get more privileges at work than men due to the championing for

women rights. The leaders of the organization are therefore mandated to appropriately

address gender and diversity in a fair manner for every individual.

Impact of Leadership on Organizational Sustainability 9

5.0 Global strategic leadership

Global leadership involves the various qualities and idealities that one as a leader may

require handling different cultures, alternative product lines and managerial challenges

(Reiche et al, 2017). It occurs when an individual or individuals navigate collaborative

efforts of different stakeholders through environmental complexity towards a vision by

leveraging a global mindset (Daft, 2014). Strategic global leadership requires a global

mindset where the company formally manages its global operations while still

maintaining relevance in the local region. Coca-Cola Company has achieved this based

on its worldwide distribution yet unique packaging according to the different countries

and cultures that the beverages are sold in (Coca Cola, 2017). Sustainability has

furthermore been adopted by the company in its global forum. Large multinational

companies are more restricted by sustainability compliance in comparison to local and

smaller companies. Being an international company Coca-Cola has an enormous effect

on the globe as a whole. They have a number of initiatives set up to give back to the

community .This is through the empowering of women by uniting with other top

consumer companies. They also support veterans and have provided jobs for a large

number worldwide. Coca cola as a company has made it a priority not only to supply the

public’s demand of their product but also to impact the society and make a difference.

In global strategic leadership, a leader with a global mindset standardizes the product

globally and is still able to customize it to the local region. Local customization requires

some flexibility in the region which is based on policies of the region that the company is

in, specifications and the needs of the consumer. Coca-Cola Company has

standardized its products such as the taste of the company’s product is the same in one

region as it is in another. However, in aspects such as marketing, the company has

adopted the use of regional languages and places to advertise its products. Global

leadership development is achieved through examination of global leaders who are fit to

lead the company at an international level (Reiche et al, 2017). Education on different

aspects of global leadership is also needed to familiarize the leader with global

leadership concepts. Experience makes the leader better qualified as well as exposure

to leadership in a global context.

Impact of Leadership on Organizational Sustainability 10

Global leadership is however challenged by myriad factors and companies are more

susceptible to global impacts in comparison with local impacts due to their magnitude. It

is thus important for a global leadership strategy to be established to deal with risks and

any unexpected global concerns. Coca-Cola for instance is struggling to remain relevant

in the current era due to the social factor of health concerns about carbonated drinks

and sugar. The company has however adopted an alternative strategy where they

provide diet beverage.

6.0 Leadership development

Leadership development involves the enhancement of individual capacity to be

productive in leadership roles (Norris, 2017). There is evidence of success among

companies that have engaged their personnel in leadership development programs

(Norris, 2017). Development of individual leaders involves the improvement of the

abilities and attitudes of individual for better leadership. Among the issues addressed in

leadership development include the development of leaders that are self-aware;

development of leaders that are ethical; development of enterprise leaders;

development of women leaders; leadership development for a social change, focused

leadership, strategic change and performance management. The need for leadership

development has been brought about by demands from organizational boards, need to

manage competition and a growing technological era that requires integration of

different work styles and thus improved leadership (Norris, 2017). This development can

be enhanced or hindered by the personal characteristics and traits of the learner.

Successful leadership development programs are characterized by their impact on the

results of the organization, their inclusion of all levels of management and the creation

of opportunities for internal promotion (McCleskey, 2014). The benefits of leadership

development are thus positive outcomes on organizational results such as improved

performance, gaining of a competitive edge and the existence of a skilled, qualified and

capable workforce. There are different programs that offer leadership development

training and they can be integrated into the organization’s program or done outside the

work environment. A good number of companies have taken up leadership development

programs to better their leaders including the Coca-Cola Company. The beverage

Impact of Leadership on Organizational Sustainability 11

company has a leadership academy that focuses on how to thrive in a business

environment that is dynamic and help their teams succeed (Coca Cola, 2017). Among

the programs that the learners participate in include being placed in scenarios without

warning and the expectation is that the learners think quickly on how to come out of the

situation (Coca Cola, 2017).

Inasmuch as leadership development programs are the norm in most organizations,

some are simply used at face value to give the organization a certain image.

Implementation among companies is limited and this is one of the challenges faced in

the execution of leadership development (Gurdijan et al, 2014). Furthermore, there are

companies that undervalue the leadership development programs in favor of production

activities and as such invest very little. Coca-Cola has however been steadfast in its

execution of the program with its leaders intensively overseeing the development

course.

7.0 Leading Teams and Others

A leader is usually in charge of a number of people in an organization and how the

management of these people is done is an impact based on the purpose of leadership.

An organizational leader may be required to form groups or teams to implement

organizational tasks. A group is focused on independent work while a team coordinates

its work. Groups have an individual goal, individual accountability and individual

evaluation. A team, on the other hand, has collective goals, mutual accountability and

collective evaluation. Both groups and teams are important in the leadership of people

but the use of teams is best when high quality is needed with adequate time. There are

different kinds of leadership teams including laissez-faire, authoritarian, participative,

situational and transformational leadership teams (Khan et al, 2015). In laissez-faire, the

manager does not intervene in the operations and as such, there is no input from the

manager to the team. Authoritarian leadership has the leader directing the team in the

way he wants it to run. Participative leadership, on the other hand, is the best for team

building as every single personnel has a role in the department. Situational leadership

may involve a combination of participative and authoritarian leadership while in

transformational leadership there are drastic changes in the management of the team.

Impact of Leadership on Organizational Sustainability 12

While the previous CEO of Coca Cola Muhtar Kent was focused on participative

leadership, the current CEO, James Quincey is more focused on transformational

leadership where he has made a lot of changes and shakeups in the team.

Contemporary leadership teams are faced with diverse challenges including

management of politics within the team particularly with a diverse workforce (Northouse,

2015). Furthermore, keeping the team sustainable may be dependent on the ability of

the leader to inspire the team members, a task that requires the leader to have personal

traits of a motivational leader (Northouse, 2015). Contemporary leadership teams also

face the challenge of developing the team where every team member has to be

mentored and coached to achieve an equal level with other members of the team. While

leading teams may pose challenges, there are different elements that help in the

effective management of teams and these include the establishment of goals,

determination of roles, the building of interpersonal relationships and governing the

standards and expectations of procedures and processes in the team (Northouse,

2015). The workplace culture of Coca-Cola encompasses a diverse team that

appreciates talent and ideas embrace multiculturalism (Coca Cola, 2017). The company

has teams based on the departments with a culture per region, effective communication

and a motivated team.

8.0 Conclusion

This paper has expounded on the importance of leadership in the management of

organizations through discussing leadership theories and different themes that affect

leadership. Using Coca-Cola Company as a suitable example, the paper recognizes the

current need to transformational leadership in a sustainable world but still establishes

that the leadership style in itself does not solve the entire problems of an organization

as it is not perfect. The discussion on the types of leaders, especially charismatic

leaders shows that the traits of an individual have great importance in leadership. This

paper has additionally highlighted the significance of teams, leadership development,

global leadership strategy and diversity in leadership for a sustainable business.

Impact of Leadership on Organizational Sustainability 13

9.0 Reference List

Antonakis, J. and House, R.J., 2013. The full-range leadership theory: The way forward.

In Transformational and Charismatic Leadership: The Road Ahead 10th

Anniversary Edition (pp. 3-33). Emerald Group Publishing Limited.

Banks, H., 2016. The business of peace: Coca-Cola's contribution to stability, growth,

and optimism. Business Horizons, 59(5), pp.455-461.

Benn, S., Dunphy, D. and Griffiths, A., 2014. Organizational change for corporate

sustainability. London: Routledge.

Boulouta, I., 2013. Hidden connections: The link between board gender diversity and

corporate social performance. Journal of Business Ethics, 113(2), pp.185-197.

Ciulla, J.B. ed., 2014. Ethics, the heart of leadership. ABC-CLIO.

Daft, R.L., 2014. The leadership experience. Cengage Learning.

Dillon, P.J., Back, R.M. and Manz, C.C., 2014. Authentic corporate social responsibility

based on authentic empowerment: An exemplary business leadership case. The

Journal of Values-Based Leadership, 7(1), p.7.

Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in

managing and measuring corporate social, environmental, and economic

impacts. Berrett-Koehler Publishers.

Grabo, A., Spisak, B. and van Vugt, M., 2017. Charisma as a signal: An evolutionary

perspective on charismatic leadership. The Leadership Quarterly.

Gurdjian, P., Halbeisen, T. and Lane, K., 2014. Why leadership-development programs

fail. McKinsey Quarterly, 1(1), pp.121-126.

Impact of Leadership on Organizational Sustainability 14

Jolley, S.E., 2015. Exploring transformational leadership (Doctoral dissertation, Wichita

State University).

Kark, R. and Shamir, B., 2013. The dual effect of transformational leadership: Priming

relational and collective selves and further effects on followers.

In Transformational and Charismatic Leadership: The Road Ahead 10th

Anniversary Edition (pp. 77-101). Emerald Group Publishing Limited.

Khan, M.S., Khan, I., Qureshi, Q.A., Ismail, H.M., Rauf, H., Latif, A. and Tahir, M., 2015.

The Styles of Leadership: A Critical Review. Public Policy and Administration

Research, 5(3), pp.87-92.

LePine, M.A., Zhang, Y., Crawford, E.R. and Rich, B.L., 2016. Turning their pain to gain:

Charismatic leader influence on follower stress appraisal and job

performance. Academy of Management Journal, 59(3), pp.1036-1059.

McElhaney, K. and Smith, G., 2016. Investing in Women is Just Good Business (If you

do it right).

McCleskey, J.A., 2014. Situational, transformational, and transactional leadership and

leadership development. Journal of Business Studies Quarterly, 5(4), p.117.

Muenjohn, N. and Armstrong, A., 2015. Transformational leadership: The influence of

culture on the leadership behaviours of expatriate managers. international

Journal of Business and information, 2(2).

Norris, S.E., 2017. What Motivates an Individual to Lead and Engage in Leadership

Development?. In Encyclopedia of Strategic Leadership and Management (pp.

Impact of Leadership on Organizational Sustainability 15

696-706). IGI Global.

Northouse, P.G., 2015. Leadership: Theory and practice. Sage publications.

Ou, A.Y., Tsui, A.S., Kinicki, A.J., Waldman, D.A., Xiao, Z. and Song, L.J., 2014.

Humble chief executive officers’ connections to top management team

integration and middle managers’ responses. Administrative Science

Quarterly, 59(1), pp.34-72.

Randel, A.E., Dean, M.A., Ehrhart, K.H., Chung, B. and Shore, L., 2016. Leader

inclusiveness, psychological diversity climate, and helping behaviors. Journal of

Managerial Psychology, 31(1), pp.216-234.

Reiche, B.S., Bird, A., Mendenhall, M.E. and Osland, J.S., 2017. Contextualizing

leadership: a typology of global leadership roles. Journal of International

Business Studies, 48(5), pp.552-572.

Wang, H.J., Demerouti, E. and Le Blanc, P., 2017. Transformational leadership,

adaptability, and job crafting: The moderating role of organizational

identification. Journal of Vocational Behavior, 100, pp.185-195.

Western, S., 2013. Leadership: A critical text. Sage.

www.coca-colacompany.com

Zhang, X.A., Li, N., Ullrich, J. and van Dick, R., 2015. Getting everyone on board: The

effect of differentiated transformational leadership by CEOs on top management

team effectiveness and leader-rated firm performance. Journal of

Management, 41(7), pp.1898-1933.

Impact of Leadership on Organizational Sustainability 16

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."