The most commonly used measure of leader effectiveness is the extent to which the leader’s organizational unit performs its task successfully and attains its goals. Examples of objective measures of performance or goal attainment include profits, profit margin, sales increase, market share, sales relative to targeted sales, return on investment, productivity, cost per unit of output, costs in relation to budgeted expenditure, and so on. Leader effectiveness is occasionally measured in terms of the leader’s contribution to the quality of group processes, as perceived by followers or by outside observers. There are three types of variables that are relevant for understanding leadership effectiveness include (1) characteristics of the leader, (2) characteristics of the followers, and (3) characteristics of the situation (Yukl, 2001). The effectiveness of leadership can be recognized through the followers performance in their job, because without a good leader the team will not be performing well. Howell and Costley (2006) stated that they are five core characteristic of leadership that the leader should have. All leaders should have all the core characteristics in order to be effective. Figure 1.1 summarizes the core characteristics of the …show more content…
Given the importance of leadership can be said that one of the main obstacles to employee performance is the lack of successful leadership (Shafie, Baghersalimi & Barghi, 2013). Effectiveness of employee performance is significant because employees provide organizational survival (Noorshahi, 2006). Therefore, successful leadership is needed into the effectiveness of any organization, because the three factors that have been classified as the measure of organizational effectiveness are leadership and communication skills and the information skills of management (Grawford,