Leadership essay
There are many approaches to the definition to the role of leader and leadership. Typically, leader is a person in a group, who has gained credibility and influence on the team (Wortman 2012). Any kind of company needs a leader. According to experts, the competitiveness of organizations depends on its ability to effectively form a team of specialists. Business needs a leader who can manage teams of professionals and motivate them.
There is formal and informal leadership. In formal leadership, process of influencing is carried from a position, and in the informal – a process of influencing is done by personal abilities and skills. Leader is defined by a set of characteristics that affect the efficiency of management of other people, but there are some of the most important among them. These are ambition, drive, perseverance, confidence, psychological openness, realism and a thirst for knowledge. American expert on leadership Warren Bennis, in one of his works argues that successful leaders must be able to creatively adapt to the environment, attract others to form a general opinion about what is happening, have expressive voice and be a whole person (Varelas 2013). American expert on leadership John Maxwell believes that a true leader must have 21 mandatory qualities. First, a leader must be “solid as a rock”, a fix for a leader is a turning point, he has two options – to show the character or compromise. If the leader shows unstable character, followers stop trusting him. Second, the leader must have charisma – the ability to attract people. To turn into a charismatic person, according to John Maxwell, one should “love life, give people hope, share himself and his advantages” (Maguire 2012). The expert notes that people go for those leaders who are committed to their business, it is the third quality. The fourth quality is leader’s ability to communicate: effective leaders always need to develop first-class communication skills. The fifth quality is the competence that goes far beyond words. It is the leader’s ability to formulate and plan what he needs, so that the others understand. Next quality is courage, which is inherent to a leader and inspires his followers. Another important quality is insight – the ability to find a solution to the existing problem. Eighth quality is focus, where the main place is occupied by priorities and concentration. Next quality is generosity, which, in his opinion, is most convincing for followers. Tenth quality is initiative, we should remember that success is linked to concrete actions. Eleventh is listening, a leader must be able to hear what supporters tell him, and not what he wanted to hear. Also true leader should possess positive attitude and ability to solve problems. According to the theory of John Maxwell, a leader must be able to get along with people and be responsible, to be sure, self-disciplined, self-learning capable and willing to serve others. The 21st quality is “long-term vision,” which is of great important to a real leader (Geisler 2012). Generalizing different classifications, we can confidently assert that a good leader should possess exemplary character. It is important that people should trust their leader in order to trust him. A leader must be reliable and known for his honest life. Only such a leader has the right to take responsibility for others.
Corporate governance is the system of interaction between shareholders and management of the company. The subject of corporate governance is to control the commission of corporate actions. The main objective of corporate governance is to find an optimal balance of distribution of rights and responsibilities between all participants of corporate relations – shareholders, board members, members of executive body, audit commission, etc. (Hays 2012). The need for corporate governance stems from the fact that business as the property belongs to investors, and management rights are assigned to the board of directors and management. Shareholders’ meeting may decide on the reorganization, mergers, securities, main executive bodies, major transactions, internal documents and disclosure of company information. Corporate governance mechanisms are designed to provide the board of directors responsible to the shareholders. Corporate governance is focused on the fact that all groups and institutions perform their functions well while maintaining a balance of interests between them. The structure of corporate governance should provide: protection of the rights of shareholders, equitable treatment, recognition of statutory rights of stakeholders, timely and accurate disclosure of all material matters relating to the corporation (Eisenhower 2012). Corporate governance is based on the principles of fairness, honesty, responsibility, transparency, professionalism and competence. An effective system of corporate governance involves respect for the rights and interests of all participants of corporate relations and contributes to the success of society.
Corporate social responsibility in the broad sense, is the impact of business on society. Corporate social responsibility means achieving commercial success in ways that value the ethical principles and respects people, communities and the environment. The practice of CSR is subject to much controversy. Some argue that it has a strong economic rationale; critics argue that it takes away from the fundamental economic role of businesses (Shelton 2012). In a market economy, success of business depends on various circumstances, including the prevailing market conditions. Experts believe that those companies that have been at a time more successful than others, must understand that in order to maintain a certain balance and stability in society, they need to exercise corporate social responsibility to society.
The importance of effective business leader is sufficiently large: he defines the dynamics of development and success of the business, charges employees with energy and stimulates their activity. Effective leader defines and formulates strategic priorities and objectives of the organization, selects the data, analyzes trends and interdependence.
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