How do you measure the effect of organizational leadership on performance?

understanding the organisational context is very important. However, as you have started, you need to consider three things. 1. the organisational leadership, 2. Ensuring how the leadership is practices, 3. The financial and Non financial organisation performances.

For the first case, the leadership style, governance documents, Policies, and procedures need to be accounted. for the second one, you need to assure that, all these are practically implemented in the organisation. Whereas for the third issues, financial performances (profitability, income growth, Asses and investment growth, etc, for the non-financial, employee retention, and satisfaction level, customer satisfaction, shareholders satisfaction, etc). you can use smart-PLS or AMOS to analyse the SEM.

Manu Vasudevan Unni

Measuring the effect of organizational leadership on performance is a complex task that requires a comprehensive approach. Here are some steps that can be taken to measure the effect of organizational leadership on performance:

Define Performance Metrics: The first step is to define the performance metrics that will be used to measure the impact of organizational leadership. These metrics should be relevant to the goals of the organization, and may include financial performance, customer satisfaction, employee engagement, productivity, and other key indicators.

Collect Data: Data can be collected through various methods, such as surveys, interviews, focus groups, and performance records. This data can provide insights into how leadership behaviors and actions are impacting performance outcomes.

Analyze Data: Once data has been collected, it can be analyzed to identify patterns, trends, and relationships between leadership behaviors and performance outcomes. Statistical analysis can be used to test hypotheses and determine the strength of relationships between different variables.

Conduct a Comparative Analysis: A comparative analysis can be conducted to compare the performance of different teams, departments, or business units within the organization. This can help identify the impact of leadership on performance in different contexts.

Conduct External Benchmarking: External benchmarking can be used to compare the organization's performance against industry standards or best practices. This can help identify areas where the organization may need to improve its leadership practices.

Develop an Action Plan: Based on the analysis of data and benchmarking results, an action plan can be developed to address areas where leadership practices need to be improved. This may involve developing leadership training programs, establishing performance goals and metrics, or implementing other initiatives to improve leadership effectiveness.

Measuring the effect of organizational leadership on performance is an ongoing process that requires regular evaluation and continuous improvement. By defining performance metrics, collecting data, analyzing results, conducting comparative analysis and external benchmarking, and developing an action plan, organizations can identify areas where leadership practices can be improved to drive better performance outcomes.

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I would recommend reading the following article:

- Dhaifallah Obaid Almutairi (2016) The Mediating Effects of Organizational Commitment on the Relationship between Transformational Leadership Style and Job Performance, International Journal of Business and Management; Vol. 11, No. 1.

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