Leaders Matter

According to the Journal of Leadership Studies:

The results show conclusively what one would expect: leadership has a direct relationship to a perception of Organizational Efficacy. In other words, how leaders behave influences an overall perception of how the organization will perform. This is significant for leaders to understand, since they may be unaware of how their behaviors impact their employees.

Correlations between Leadership and the factors of Organizational Efficacy showed that leadership is most strongly related to collective capability. This makes sense: leaders orchestrate teams, show direction, apply resources, and give encouragement to stay on course. The high correlations between organizational efficacy and individual leadership behaviors is more striking since they show how leader consistency, leader communication, leader track record, and leader focus relate to perception of organizational efficacy.

Well Duh. I hope people understand that now. Leaders affect perceptions in an organization. That is why Enron was so bad. Lay and Skilling built a corporate culture that doomed the company to make poor decisions.

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