Leadership and Impact

How do managers influence the organizations in question? This question has been asked by many top scientists in the field of leadership. Hambrick (2007) believes that these echelons leaders behave on the basis of their personal opinions and understanding of "strategic circumstances" as well as their cultural values, personal experience and individual personality. This has been the foundation of the Second Echelon of the Doctrine for many years, which was developed on the basis of limited common sense (Cyert & March, 1963, March & Simon, 1958). However, regardless of these types of totally complex circumstances and "uncertain circumstances" (Mischel, 1977), leaders in the Upper Echelon Agency have specific methods that may affect and change the organization.

Particularly, six impact processes allow leaders to shape the strategic strategy and performance of the organization. Beginning with direct decisions, leaders have the ability to shape the decisions that their followers have based solely on the management they have about the vision and the agency's mission (Nahavandi, 2006). These two variables (ie vision and project) thus affect the organization's culture by focusing on what the company considers important and valuable (Nahavandi, 2006). In addition to being able to lead leaders to influence the vision, mission and direction of the organization, direct members have direct links with managers who play an important role in shaping (or restructuring) policies, determining decision making and setting the climate or structure of the organization (Miller and Droge, 1993; Nahavandi, 2006). Leaders determine planning with "direct decisions" changes that affect the structure or indirectness of the people they influence (Nahavandi, 2006). As a clear example, Stanley Wang from Acme Toys started working just before the employment agency resigned. Founder, James Green, was forced to make a direct decision as to whether Stanley would be the new CEO of the company or not. This decision would have a direct impact on the organization and impact of the organization's culture, taking into account Stanley's personal values ​​and experience.

Assignment of resources is also another way that senior echelon leaders have a significant impact on companies (Schein, 2004). These leaders are the top decisions on resource allocation (ie human, technology, money, etc.). Both individuals and organizations (Nahavandi, 2006). For example, the CEO may wish to push for the sale of new products, so that the CEO can pay a large part of the total budget to the business and marketing sectors and reduce resources from other business units that are less concerned. In this example, the allocation of resources supports specific goals (ie projects) in support of enterprise strategy and creates a structure that provides prospective results (Nahavandi, 2006, Miller, 1987).

In addition to direct decisions and allocation of resources, the wage system (formal and informal) also has a significant impact on the organization's or its employees' culture (Schein, 2004; Nahavandi, 2006). Most of us know this kind of behavior in the form of monetary incentives when we comply or comply with certain behavioral standards and / or achieve goals that reflect the organization's mission. For example, an employee may receive a 10% bonus if he or she receives a particular sales income or margin target of a product or service.

Prize systems are not only limited to monetary growth but also by the choice and promotion of other leaders (Nahavandi, 2006). Those who follow and organize the organization of culture and structure, in addition to meeting individual goals and goals, are much more likely to promote top leadership – instead of those who do not (Nahavandi, 2006). This process can be true for almost any situation; Those who probably fit well in an organization and culture are more likely to be selected and rewarded in some way.

Both of these processes can be seen in our examples. Again by using Acme Toys as an example, Stanley Wang was rewarded significantly by his boss, James Green, by giving him all the project. He then got all the possible prizes the company had to offer; thus justifying his future election to the CEO.

According to Nahavandi (2006), employees are encouraged to assess certain "behaviors and decisions" that conform to the institution's culture, leaders who play roles and set standards for decision making, have a greater impact on the organization. For example, senior echelon leader may ask their top sales manager to develop a strategic sales plan that will achieve the goals and objectives of the organization. Although he does not advise how to achieve these goals, he can be sure that they achieve the desired results by making decision-making and standardized guidelines.

Another way leaders influence communities with their own behavior or role (Nahavandi, 2006; Schein, 2004). A leader who is passionate about customer service will emphasize this passion in information conveyed to his employees. This can also be shown in terms of ethics and how the leader communicates and allows employees to behave. This can be sent by vision and / or project or in regular contact with employees. For example, as President of the Uniform Data Link, Leslie Marks made it a model for his employees. She moved her office from the third floor to the first floor to show everyone was equal and your title in the company does not reserve how important you have. She regularly encouraged everyone to share ideas and work directly with engineers instead of working with law managers. Leslie also strengthened her value at the workplace by working in jeans almost every day.

Whether direct decisions, rewards, roles or affiliates – leaders have a variety of influence that affects their organizations (Nahavandi, 2006). By utilizing these methods, echelon bosses actually create a reflection of their own style, values, wishes, and experience.


Cyert, RM, & March, J. (1963). The behavioral question of the company. Upper Saddle River, NJ: Prentice Hall.

Hambrick, DC (2007). Upper echelon theory: Upgrade. Directors of Audit Report, 32 (2), 334-343.

Mars, JG, and Simon, HA (1958). Institutions. New York: Wiley.

Miller, D. (1987). Origin of settings. Managers Audit Report, 12, 686-701.

Miller, D., & Droge, C. (1986). Psychological and traditional elements of structure. Administrative Sciences Quarterly, 31 (4), 539-560.

Mischel, W. (1977). Interaction of person and state. In D. Magnusson, and NS Endler (Eds.), Personality at Crossroads: Current Issues in Communication Psychology (pp. 217-247). Hillsdale, NJ: Lawrence Erlbaum Associates.

Nahavandi, A. (2006). Art and science leadership. Upper Saddle River, NJ: Prentice Hall.

Schein, E. (2004). 2004. San Francisco: Jossey-Bass.

Schein, EH (1983). The role of founder in creating the organization of culture. Organizational changes, 12 (1), 13-28.



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