Paper Example on Factors Affecting Organizational Leadership and Management

Published: 2023-01-22
Paper Example on Factors Affecting Organizational Leadership and Management
Type of paper:  Term paper
Categories:  Business management Organizational culture Leadership style
Pages: 7
Wordcount: 1792 words
15 min read


One of the most important aspects of any organization is that of management. Management involves leadership, and it is what directs and steers a company towards the direction that it takes. Effective management leads to the achievement of the organizational goals while a poor one leads to failure. This means that every organization must be keen enough to engage effective leadership so that the management of that organization is effective thus goals are achieved. Nevertheless, there are various factors that affect the leadership and management of an organization (Noe et al., 2017). Some of these factors include internal and external policies, group dynamics, and culture. Internal and external factors vary depending on the organization and the environment within which it operates. On the other hand, group dynamics and organizational culture are highly dependent on the organization and the potentials of those who work in it. This paper presents an analysis of how group dynamics, internal and external factors, as well as organizational culture, affect the leadership and management of an organization, and looks at the positive ways in which the leaders can use these three areas to effectively improve services to the external customer and create a positive internal environment for teamwork.

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Group Dynamics

There are various groups in organizations that work as teams. Such teams need to employ teamwork in all their undertakings for the success of the organization. Since a team is made up of people with a diversity of backgrounds, egos, ideas, and goals, it is important that the appropriate leadership and management styles are taken into consideration to avoid unnecessary conflicts (Wheelen et al., 2017). The composition of a group and the underlying dynamics are generally likely to affect the management of an organization in various ways.

First, group dynamics affect the decision-making process through unnecessary delays. The decision-making process is affected since every decision that is made within the organization has to be appropriate due to the fact that it affects every member of the group (Chang, 2016). In that case, every leader must clearly understand the dynamics of the groups they are working with so that they relate such dynamics with the role they play in the company. For successful management to occur, the groups have to be organized in such a way that every individual agrees to work towards the achievement of company goals (Noe et al., 2017). This explains why consultations have to be made in advance before any decision that touches on the members is made. However, this may negatively impact on leadership since the decision-making process may end up delaying as the consultations are being made. Furthermore, harmonizing the views of each group member may take longer than expected and, in some cases, become complicated.

On the other hand, the life cycle of a group may affect the leadership and management in an organization. There are five general steps that demonstrate the formation of a group. They include forming, storming, norming, performing, and finally, adjourning (Wheelen et al., 2017). Forming involves the coming together, storming is all about seeking common ground, norming involves investing in the group goals, performing is about contributing towards the achievement of the goal while adjourning involves disbanding of the group upon the achievement of goals (Chang, 2016). A good leader must understand this life cycle for the management to work since some members may want to dominate the group at various steps. Failure to understand the steps affects organizational leadership since it becomes difficult to guide and evaluate the group at each step, especially considering the dynamics involved. In my organization, for instance, there is a time we had to disband a group selected to plan the company's marketing strategy at the storming stage since the conflicts were too many and the members could not establish a common ground. The management had to go back to the drawing board and form a new group. Understanding the group cycle is therefore critical for the management to provide the appropriate direction.

Nevertheless, the management of an organization can use group dynamics to effectively improve services and create a positive environment for teamwork. All the management needs to do is understand the importance of strong leadership within a group, recognize the impact of diverse personalities on team dynamics, consider the role of each step in the life cycle of a group and ensure effective communication when dealing with these groups. By so doing, the potential of every member will be utilized, and this will lead to better services, customer and employee satisfaction, as well as the achievement of company goals.

Internal and External Policies

The management of an organization can also be affected by both internal and external policies. The internal factors can be controlled by the leaders within an organization while the external ones may not. The success of an organization depends on how well the management is able to handle these aspects.

Internal Policies

Some of the internal policies include company mission and vision, leadership, and employees (Goetsch & Davis, 2014). These aspects affect management in various ways. The ability of the leaders to make effective decisions regarding finances, marketing, budgets, human resource and other critical ones affecting the organization is an important factor in organizational management. Also, the mission and vision statements have a great impact on the management team because they need to offer leadership on these aspects. Every employee has to be aware of the reason behind the existence of the company they work for and the direction they have to take to achieve their mission. Additionally, employees affect management. If the employees are not motivated and do not clearly understand their roles, they are highly unlikely to meet the expectations of their leaders. This makes the management fail in steering the company into achieving its goals. Leaders can utilize the internal factors by structuring the management in such a way that the employees feel motivated and empowered to offer solutions to issues that may hinder the achievement of the organizational goals as spelled out in the mission and vision statements. By providing the appropriate training, tools, motivation, support and constant communication, the working environment will be improved and customers will be served satisfactorily.

External policies

Some of the external factors affecting leadership in an organization include the economy, government policies, economy, and competitors (Goetsch & Davis, 2014). These factors are usually beyond the control of the leadership of an organization. Government policies on taxation, for instance, are not negotiable. Since the company has to comply, decisions are made in line with the stipulated policies. The economic and political environment within which the organization operates also affects the management because decisions have to cater to the interests of the environment. The companies are normally forced to adjust their operations depending on the current situation. Additionally, the competition for customers is an external factor affecting the management of a company. The strategies that a company sets could determine their ability to gain a competitive edge in business (Bolden, 2016). This means the decisions made are highly dependent on this external factor other than what the company management thinks is better.

Nevertheless, the management of an organization can utilize these external factors for their own good. As long as they comply with the law, they can, for instance, identify a gap that they need to fill and capitalize on it to gain more customers and increase their profit margins. Our company, for instance, strategized to please customers about a year ago. Since the customer always came first, the employees were empowered to offer discounts to customers without the need to consult the supervisors as long as the prices were within the agreed range. This saw an exponential increase in the customer base as they started recognizing our efforts to appreciate them. When a company is able to offer better services and a conducive environment for workers, then it is bound to succeed.

Organizational Culture

The culture of an organization is another important factor that affects the management and leadership in an organization. Since people from different cultural orientations perceive things in different ways, there arises the need to streamline these perceptions by having a well-laid out organizational culture that applies to everyone within that company. Organizational culture refers to the beliefs, values, and perceptions that are shared by all the members within an organization (Goetsch & Davis, 2014). The culture affects management in various ways since it has to be considered before any decision is made. An organization that has no stipulated culture lays the ground for failure. Therefore, the leaders are forced to consider culture before making any decision. There is a very close relationship between organizational culture and job satisfaction due to the resultant attitudes and behavior among employees (Noe et al., 2017). Cultural ethics are crucial and the employees need to be updated constantly on what is expected of them in various situations. They also make management easier since everyone knows what to do under different circumstances without necessarily consulting the leadership. Leaders can use the aspect of culture to create a positive internal environment for teamwork by ensuring that they constantly communicate any new ideas regarding the behavior of employees and take any complaints seriously. This will improve the motivation levels thus better services will be offered to the customers.


It is clear that group dynamics, internal and external policies as well as an organizational culture have a notable impact on the leadership and management of an organization. These factors ought to be carefully considered by managers so that they do not bring an organization down. Groups are made of people with different personalities thus leaders must be careful when dealing with them due to their dynamic nature. Internal and external factors are crucial in decision-making thus leaders should examine their impact on the organization before making any step. Finally, organizational culture affects the way leaders make decisions within organizations. All the same, these aspects can be utilized by managers and leaders to improve services offered to customers, as well as create a positive internal environment that is conducive for job satisfaction and effective teamwork. If utilized well, the three factors will help the leaders steer their companies towards achieving organizational goals and maximizing profits. Therefore, it is crucial for every management to recognize how group dynamics, internal and external policies, as well as organizational culture, affect leadership within organizations.


Bolden, R. (2016). Leadership, management, and organizational development. In Gower handbook of leadership and management development (pp. 143-158). Routledge.

Chang, J. F. (2016). Business process management systems: strategy and implementation. Auerbach Publications.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: Pearson.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.

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