Whether you are attempting to run a Fortune 500 company or motivating a small group of volunteers, your organization requires strong leadership to succeed. If you are too authoritarian, do not provide direction or are unpleasant to your employees, they may not behave in productive ways and may eventually leave your organization.
Increased Turnover Rates
If an organization suffers from poor leadership, employees or volunteers may not be as motivated to stay with the company. People may enter the organization only to quit a few months later, causing the organization to constantly have to interview and hire new employees or train new volunteers. High turnover rates affect the morale of the employees who remain with the company as well as cost time and money as leaders attempt to fill positions and train new workers on a regular basis.
Poor leadership can leave employees unsure of what role they fill or what specific actions they need to take towards a goal. In addition, employees may be reluctant to do their best work for a leader they do not respect, particularly if the person is verbally abusive or otherwise unpleasant. Thus, organizations that suffer from poor leadership are less productive overall.
Lack of Focus
Organizations that suffer from poor leadership may lack focus. The organizational leaders may not have a clear vision of what they want the organization to accomplish or may not communicate their vision adequately to employees. Thus, employees may engage in activities that appear to be productive but do not bring the organization closer to their goals because of a lack of clarity about what those goals are or what is needed to achieve them.
Poor leadership styles may cause an organization to adhere rigidly to the way things have been done in the past or to the way the leader wants things to be done. If the leader does not take changing market conditions into account, he may direct his team to engage in behaviors that are no longer effective. This can cause the organization to fall behind on its goals or to lose clients to competing organizations that better meet their present needs.
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