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Role of Corporate Leadership in Reforming Organization



  • Qualities of a leader
  • Theories of leadership


Corporate leadership comprises of the executive and the managers who define the strategies for running the company. The leaders are effective and they determine the methods which strengthen the day to day business operations of the organization. The leaders depict a responsible behavior and they propose methods for effectively utilizing the organizational resources (Faleye, 2007). The actions and decisions which the managers take for aligning the individuals so that the corporate goals can be accomplished are called the corporate leadership decisions. A charismatic leader must have particular interpersonal skills and h must have the potential of communicating the goals which are required to be accomplished by the workforce. The corporate leaders are aware of the importance of customer satisfaction and they try to propose strategies which enhance the overall values derived by the customers. The leaders are motivated and confident and they constantly come up with strategies for engaging the employees. Leadership has nothing to do with the seniority or age of the employees and it is free from the dominance of the titles within an organization. Leadership is a trait which is not associated to the personal attributes of the individuals (Kur & Bunning, 2002).

In this report a discussion will be presented about the role of the leaders in aligning the employees of the organization. The role of corporate leadership in reforming some organization will be discussed in order to explain this fact. Various forms of leadership will give rise to a debate about the organization’s corporate leadership. Relevant models and theories will be used to analyze the role of corporate leadership in organizations ‘ success. For the analysis of the role of the corporate leadership on decision making of some of the companies will be discussed. These companies will be selected from the list of FTSE-100 companies listed on the London Stock Exchange. The companies which will be subject to discussion will include British American Tobacco, Glaxo Smith Kline and Tesco. The study of their corporate leadership’s role in organizational performance will be discussed in detail. Using the details presented and analyzing the examples discussed certain advices will be presented to the leaders of the SME’s located in Thailand. The learning outcomes of the report will be discussed so that the role of leadership and its contribution to the success of the modern day organization can be discussed.

Role of Corporate Leadership in Reforming Organization

Corporate Leadership

Leadership is considered as a major way in which the minds of the people can be changed and which moves the organization forward for accomplishing the identified organizational for acquiring success (Burgoyne & James, 2006).

Qualities of a Leader

The qualities which a leader must possess for dealing with the hurdles which came in the way of organizational success are shown in the chart below. The leader must possess some personal traits which include being confident, innovative, charismatic, intelligent, visionary and must take responsibility of his actions. The managerial traits which a leader must have are that he has knowledge, ability to administer, deal with people and must be able to quickly take decision which may be in line with the organizational benefits (Zaccaro, Kemp, & Bader, 2004).

Leadership Research Paper Example

(Rahul-notes, 2013)

It is essential that a leader possesses all these traits because these traits strengthen the corporate governance of the organization and align the work force towards accomplishing those objectives.

Theories of Leadership

There are different theories of leadership proposed by various researchers for understanding the methods using which the organizational objectives can be accomplished accurately. The characterization of the theories of leadership is done in the following ways (Zaccaro, 2007)

  1. Trait theory: This theory shows that effective leaders share a few common traits
  2. Behavioral theory: This shows that the leader’s way of leading is determined through their behavior. This includes (Epitropaki & Martin, 2004)
    1. Autocratic leaders
    2. Democratic
    3. Laissez-Faire leaders
  3. Contingency theory: This theory signifies that there is no one particular method of leading the workforce and the best approach which deals with the problem may be considered as the best applicable approach. This includes the (Sosik & Godshalk, 2000):
    1. Hershey-Blanchard’s situational leadership goals theory
    2. Path goal theory
    3. Fielders Contingency model
    4. Leadership process model
  4. Power and influence theory: This theory is different as it analyzes the methods using which the leaders exercise their power and influence. This includes the study using the (Maxwell, 2007)
    1. French and raven’s five forms of power
    2. Expert power form theory

All these different styles of leadership are used for increasing the employee engagement with the tasks which they are assigned. This ultimately enhances the productivity of the organization and makes accomplishing the organizational goals and tasks possible (Maxwell, 2007).

Pros and Cons of Leadership

There are several pros and cons which are associated to becoming a leader. To name a few are the following;

  • Money: Team leaders enjoy increased pay rates. If the leaders are not placed appropriately then they may be considered as ineffective liability which may enhance the overall expenses of the organization (Kotter, 2007).
  • Experience: The team leader must be experienced as all of the employees working in the organizations turn to the team leaders for seeking their assistance. The team leaders require sharing their experiences with the team members so that they can be motivated (Kaiser, Hogan, & Craig, 2008).
  • Independence: They require assisting the members but when it comes to individual actions the team leaders are not assisted by others (Shelton & CAC, 2006).
  • Placement: The stability of a particular department may be disrupted from the introduction of a new team leader. This may change the goal setting practices and the motivation level of the employees (Hackman & Johnson, 2004).

All these show the problems associated with assigning the team members to a particular segment of the teams.

The leadership has a significant impact on the performance of the SME’s (Kantabutra & Avery, 2003). The leader must be such which highlights the vision of the company and takes the measures which enhance the organizational performance and align the workforce for attaining the organizational goals and objectives. In this competitive environment where the businesses are globalizing the leaders establish an understanding of the values and align with those goals accordingly (Gardner, 2003).

Current Forms of Corporate Leadership Along with Examples

In the modern times the businesses require to be led out of the financial crisis. In order to avail stability the businesses require that the leaders structure their decisions in such a way that the organizations can grow and objectives set by the strategic management can be accomplished. This requires that the leaders ensure that the workforce is aligned on the track and they understand the goals which lead to the organizational success (Eagly, Johannesen-Schmidt, & Van Engen, 2003).

For analyzing the role of the strategic management and the methods using which the organizations ensure employee engagement for attaining success three organizations from the FTSE-100 list of the London Stock Exchange will be analyzed.


The leadership and the corporate governance of British American Tobacco are monitored by the organizational board itself (BAT, 2012; 2013). The board takes full responsibility of the vision and the strategic direction of the organization. It is ensured that the employees are empowered and the leaders ensure that the organizational goals, values and the strategic directions are clearly dealt with. The business holds full responsibility of acquiring the benefits for the shareholders and ensures that the long term success of the business is ensured. The management takes notice for developing a framework which aligns the workforce towards accomplishing the organizational goals and success (BAT, 2012; 2013).

Leadership Research Paper Example

(BAT, 2012)

The chart which has been shown above elaborates the individual leadership roles. The chairman leads the board and chief executives lead the group which enables effective planning and execution of the objectives and strategies form for accomplishing the organizational goals.

The leadership styles which are used by the leaders working at BAT shows that some are autocratic, charismatic, democratic/ participative and task oriented forms of leadership are adopted. All the leaders have a separate and a distinct role with the sole objective of acquiring the organizational goals and success. The board members are aligned together and they follow a collaborative role for the collective decision making. This leads to the success of the day to day obligations which the organization requires o accomplish (BAT, 2012; 2013).

Glaxo Smith Kline

GSK gives strong heed to the leadership activities of the organization. It is considered as amongst the leaders in the pharmaceuticals industry with a leading market share of about 6.9% (GSK, 2011). The attributes of leadership which the professional at GSK require to possess includes flexible thinking, developing the people, implement the measures which lead towards constant improvement, enable change, focus on the customer objectives and build the relationship which benefit the entire organization collectively. The leadership style which is followed by the organization is more behavioral which promotes the people oriented approach. This depicts in all the actions which are taken by the management of the organization. The task oriented leadership is also applied so that the required targets can be acquired effectively. This is the management approach which benefits not only the individuals but also leads the entire organization on the path of success (GSK, 2011; 2012; 2013).

The corporate governance of GSK emphasizes on the following for the purpose of corporate governance (GSK, 2013).

(GSK, 2013)

For minimizing the risk the organization utilizes the leaders and vest them with the powers which makes them accountable for the decisions which they take and ultimately benefit the organizations (GSK, 2013).

(GSK, 2013)

The financial architecture of GSK which leads to maximum returns is shown below.

(GSK, 2013)

The role of the corporate leaders strengthened the organization and this resulted in growth and returns for the shareholders of the organization.

Leadership Research Paper Example

(GSK, 2013)

These measures show the responsibilities of the corporate leadership and determine the measures which result in success for the organization.

Tesco PLC.

Tesco Corporation is very serious about its corporate governance because it is the leadership of the organization which has a direct relation with enhancing the productivity, dignity and self-esteem of the employees. Effective governance improves the returns for the shareholders. The corporate governance policies of the organization are made for the empowerment of the employees and ensuring that the employees work for the sole benefit of the organization (Tesco, 2012; 2013).

The leadership styles which are adapted by the leaders of the organization is goal oriented and task oriented. The policies and the practices which are adapted depend on the behavior of the employees (Brunmmer, 2010). Appropriate compensation and remuneration is offered to the employees so that they can be aligned with the goals of the organization. The strategy which the organization adapts to is innovating and enhancing the offering for maximizing the customer satisfaction. This has enabled the organization in expanding globally (Tesco, 2012; 2013).

(Tesco, 2012)

The criteria for measuring the performance of the employees are shown in the chart below.

(Tesco, 2012)

The risk allocation methods and the understanding of the policies which show the actions which the leaders take for dealing with the situations are shown below.

Leadership Research Paper Example

(Tesco, 2012)

The long term and the short term performance of the employees are measured using the grid shown below. This contributes to the development and growth of the organization.

(Tesco, 2012)

The leadership structure of the organization is also autocratic which emphasizes on the completion of the goals and tasks accordingly. Besides this several behavioral actions are taken by the leaders to deal with the challenges which arise unexpectedly (Tesco, 2012; 2013).

Leadership Advice to SME Start-Ups in Thailand

Thailand had been rated thirteenth in 2009 as being considered best countries for SME startups (CNN, 2009). This is because the benefits associated with registering the property, protecting the investors and paying taxes has reformed due to constant regulations. This strengthened the rights of the shareholders. This made the jobs more challenging for the corporate directors. New propositions were made which introduced income tax exemptions for small companies. The obstacles associated with operating an SME is challenging for the leaders and requires them to apply the practices which may lead the organizations towards excellence (Thongtep, 2012).

There are several researches which show the progress of the SME businesses in Thailand (Chittithaworn, Islam, Keawchana, & Yusuf, 2011). This requires particular action from the managers so that the operations of the businesses can be improved. There are several characteristics which the leaders of the organization must emphasize for improving the overall performance of the businesses. The factors which affect the change in the environment affect the SME’s more significantly rather than the large scale businesses. This requires particular plan of action to be implemented by the organizations. The core business values must be signified and the measures must be taken for implementing those values. These measures ensure employee engagement so that the organizational goals and objectives can be easily accomplished. SME’s are playing an important role in the economic development of the country (Chittithaworn, Islam, Keawchana, & Yusuf, 2011). The development of the SME’s in Thailand show dramatic development and for this purpose it is essential that leaders adapt to specific practices which benefit this growing environment which will ultimately lead towards economic growth and development (Chittithaworn, Islam, Keawchana, & Yusuf, 2011).

The leaders must take fearless and passionate measures for protecting the cash and managing the business operations efficiently. This requires that leaders adapt to a situational approach. At this basic state the challenges which may arise may not be completely predictable. This will require that the leaders adapt to the situation accordingly. The workforce must be inspired by the charisma of the leader and they must be delivered the ideology of the organization. This will define the goals of the organizations and at the same set a benchmark of performance for the employees. If the workforce is task oriented then the goals can be communicated and the workforce can operate efficiently aligned completely with the management’s strategy (Kerr, 2006).

Thailand is a growing economy and the examples of the organizations and their leadership which has been discussed above show the importance of being goal oriented so that the organizations can grow and progress with the passage of time. The leadership characteristics which are required for the SME start-ups are as following (Schreter, 2012):

  • Leader must possess the characteristics of an entrepreneur
  • The leader must define the goals of the SME
  • Strategic goals must be defined for promoting the performance of the business
  • Feedback must be used for promoting the organizational benefits

All these measures must be used by the leaders of the SME’s situated in Thailand for promoting the interests of the organization. Specific approaches and the strategic measures suggested above will enhance the performance of the SME start-ups located in Thailand.


The role of leadership is essential for the performance of the organizations. This shows the measure the leaders can take for aligning the workforce and accomplish the organizational goals and objectives. This shows the significance of the corporate leadership and the measures which must be taken for enhancing customer satisfaction. The role of the corporate leadership has evolved and this has promoted the global development of the businesses. In the markets such as Thailand where that business adaptability is improving and the business trends are reforming to meet the global challenges the role of corporate leadership has become very prominent. This corporate governance must ensure that the productivity of the organization is as per the needs of the customers so that the customer value can be improved along with the market sustainability.

The global needs of the business must be based on the core business values. The needs must be understood and measures must be taken for improving the profitability. These measures offer a business perspective which is beneficial for the development of the poor economies. The corporate governance measures must be structured in such a way that the entire economy and the businesses flourish. The propositions covered in this report present the significant role of the leadership. This shows the strategic implementation of the processes which improve the overall position of the business. This report discusses the role of the leaders and it signifies the measures which must be taken for benefiting the corporate entities. For this purpose three examples of the FTSE-100 companies listed on the London Stock Exchange have been discussed. The selected companies for identifying the role of the leaders are British American Tobacco, Glaxo Smith Kline and Tesco. All the organizations demonstrate sheer examples of a prominent role of corporate leadership. The leaders are the faces which have motivated the workforce and driven the organizations on the path of success.

Analyzing the discussed three companies listed on the FTSE-100 companies list shows the requirement of adapting to different forms of leadership. This shows the steps which the corporate governance takes for aligning the workforce and managing the risk associated to the business. Several different styles and situations of leadership have also been discussed which reason for evolutions arising in the business practices. This discussion also shows that how the leadership has impacted on the organizational growth and success. The role of leadership is prominent on the organizational performance and the elaboration of the process shows its impact on the economic growth. For this purpose the role of leadership and some advices have been presented for evolving the performance of the SME’s situated in Thailand.  The leaders must ensure that the performance of the organization is customer oriented and the focus is mainly on increasing the profits. This improves the position of the organization and the economic conditions too which results in economic growth and development. Employee engagement and increasing the value for the shareholders is the sole function on which the leaders must emphasize. For this purpose the leaders must depict passion and fearlessness in the decisions which they take. The role of the corporate leaders requires ownership of the actions and focusing on the core goals of the organization.

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