People and Organisations
(i) Critically discuss the ways in which the personality of a leader might affect employee turnover
An effective leader is a firm’s visionary; they are clear as to what the direction of the organisation is and can devise strategies in order to push it to survive and grow. It is therefore vital that a leader is able to motivate the employees around them, as they are fundamentally the roots to any firm’s success.
“A leader is a person who sees something that needs to be done, knows that they can help make it happens and gets started. A leader sees opportunity and captures it. He/she sees future that can be different and better and help others see that picture too. He/she is a coach, an encourager and is willing to take risks today for something better for tomorrow. A leader is a communicator, co-ordinator and listener.” (Bhatti, 2012; Maitlo, 2012; N. Shaikh, 2012; Hashmi, 2012; M. Shaikh, 2012).
This essay deliberates the personality traits of leaders. It critically discusses what affect personal psyches can have on employee turnover, whilst using a range of theory and commenting on two specific leadership styles to support and frame the discussion.
From a business perspective, employee turnover is ‘the rate at which employees leave a company and are replaced by new employees’ (Cambridge Business English Dictionary). Turnover rates are influenced by many factors, such as a lack of training; poor work conditions or workplace conflict. All of these factors contribute to poor employee motivation and satisfaction, a lack of motivation can also result in absenteeism and decreases in productivity. Moreover, hunting for, employing and training new staff is also a cost, therefore in the long-term high rates of employee turnover will make it likely that overall profitability will suffer.
In liaison with the discussion topic of leadership, it is conspicuous that leaders and how they decide to manage the firm predominantly affects turnover rates and employees.
Defining leadership styles and related personality traits
The leadership style adopted by an individual can be very different; often a manager’s chosen style of leadership is dependent on their personality.
In publisher Pearson’s 5th edition AS/A Level Business textbook, it is stated that there are four main leadership styles:
- Autocratic leadership
- Paternalistic leadership
- Democratic leadership
- Laissez-fair leadership
For the purposes of wanting to critically analyse in more comparative detail, to come out with a clearer conclusion, and to keep focus on personality, only autocratic and paternalistic leadership will be discussed.
An individual who shows typical traits such as being: