Question

Is the concept of leadership necessary only in large organizations or does it come into play in small business too? Why do you believe this? How might leadership behaviors be different in a small business environment?

Answer 1

Leadership:

Leadership is a process through which an individual binds a group of individual towards attainment of a common goal. The leader should have a clear vision and motivate his team for them to excel in their work.

Concept of leadership is necessary for large organizations and small business too due to below reasons:

1. Strategy focused: Be it small or big, an organization has to be strategy focussed and a leader needs to possess more of strategic skills. He should avoid being more transactional and focus on strategic works which would develop his team and the organization whatever size it may be.

2. Communication: Effective leadership behaviour has the ability to convey messages with clarity. Leaders can expect positive results when their team knows what is expected out of them which in turn achieve the vision and mission, strategy of the organization. This is a requirement for all size organization to succeed.

3. Decision making: Taking right decision at the right time is must for achieving organisational goals be it small or big. Decisions have to be appropriate and thought through and leaders should avoid haste decision making. These characteristics of a leader lead towards best performance.

4. Motivation skills: Motivated teams perform better in any organization. Hence one of the important skills of an effective leader is to influence the behaviour of his team members towards achievement of goals.

Leadership behaviours in a small business environment

Typically Leadership behaviours depend up situations and not on the size of the organization. But due to the nature of small business, it may the leadership style may adopt the below characteristics.

1. Risk taking: Since small businesses are prone to business risk often an effective leader here has to stand by his team at times of emergencies. He has to own responsibility and not blame only the team for irregularities. A leader with this behaviour brings out a wonderful performing team.

2. Project management: To priorities work , to delegate, not to micro manage and to guide when necessary are the typical skills of a good leader in small business which reflects in the performance of the organization.

3. Personal Charisma: In small business the employees always look up to their leader for guidance and hence a leader should have the skill to influence others. This behaviour can happen only through interpersonal skills. A leader with charisma always has positive effect on his team’s performance which in turn leads to achieving organisational goals.