The Test of Leadership

Abstract

As we study the leadership styles, especially in large business organizations, we come across leaders who are mostly transactional. They motivate their subordinates through a mechanism of give and take. For securing improved bottom lines for the organization, subordinates are expected to deliver higher returns. Higher productivity, improved efficiency, implementation of cost effective methods and establishing superior relationship among clients and customers are linked to Key Result Areas (KRAs) and Key Performance Indices (KPIs) of individuals. Acknowledging the enhanced performance of subordinates, managers usually provide higher incentives. At times they offer hefty increments and in some very exceptional cases place the superior performers in accelerated career progression path. This scheme serves as a win-win opportunity. On the one hand the organizations turn healthier, whereas on the other hand employees derive higher rewards, lead a superior life style and continue to remain as key contributors.