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Leadership & Business Wisdom

Leadership and Motivation

The Success of the entire business depends on the most important resource of any organization which is certainly human resources. They are creators and makers of new technical, technological and organizational solutions, creators of new values, controllers of working process and development of business systems.

The key question is: who will manage human resources and motivate them so that the whole organization performs better. Leadership is one influence, one work of art and the process of impact on people, in sense that those who are affected are voluntarily and willingly participating in the creation of new values in the organization. Precisely, the role of a leader is to motivate its co-workers to their potential contribution in achieving the objectives of the organization. Leadership and motivation are key factors influencing the success of the organization, as well as employee satisfaction.

Therefore, the connection and interconnection of successful leadership and proper ways of motivating employees are essential for all organizations. In developed nations, it is also said that the democratic leadership style is one of the most effective. It assists employees feel valued, gives them a sense of ownership over their position, and motivates high productivity.

Controls for Nonmeasurable Events

Business, like any other institution, has important results that are incapable of being measured. Any experienced executive know companies or industries that are bound for extinction because they cannot attract or hold able people. This, every experienced executive also knows, is a more important fact about a company or an industry that last year’s profit statement. Yet the statement cannot be defined clearly let alone “quantified.” It is anything but “intangible”; it is very “tangible” indeed. It is just nonmeasurable. And measurable results will not show up for a decade.

A balance between the measurable and the nonmeasurable is therefore a central and constant problem of management and a true decision area. Measurements that do not spell out the assumptions with respect to the nonmeasurable statements that are being made – misdirect, therefore. They actually misinform. Yet the more we can quantify the truly measurable areas, the greater the temptation to put all-out emphasis on those – the greater, therefore, the danger that what looks like better controls will actually mean less control if not a business out of control altogether.

The Ultimate Control of Organizations

There is a fundamental, incurable, basic limitation to controls in a social institution. A social institution is comprised of persons, each with own purpose, his own ambitions, his own ideas, his own needs. No matter how authoritarian the institution, it has to satisfy the ambitions and needs of its members, and do so in their capacity as individuals through institutional rewards and punishments, incentives, and deterrents. The expression of this may be quantifiable – such as a raise in salary. But the system itself is not quantitative in character and cannot be quantified.

Yet here is the real control of the institution. People act as they are being rewarded or punished. For this, to them, rightly, is the true expression of the values of the institution and of its true, as against its professed, purpose and role. A system of controls that is not in conformity with this ultimate control of the organization, which lies in its people decisions, will therefore at best be ineffectual. At worst it will cause never-ending conflict and will push the organization out of control. In designing controls for an organization, one has to understand and analyze the actual control of the business, its people decisions. One has to realize that even the most powerful “instrument board” complete with computers is secondary to the rewards and punishments, of values and taboos.

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