Are Leaders Born Or Made How Do We Identify Leaders Do We Need Leaders Essay

Are Leaders Born Or Made How Do We Identify Leaders Do We Need Leaders In This Current Economic Climate - Essay Example This point has been explained in the present discourse by comparing two different organisations based on personal work experience. In the process, various aspects of leader and team behaviour, organisational systems, structure and management concepts have been used to explain leadership effectiveness and use of management concepts. This discourse presents an argument on leadership effectiveness in relation with leadership theories, management concepts and organisational culture. Leadership has been defined from different perspectives. Leadership at workplace has been the focus of many contemporary organisations. Contrary to the conventional management concepts and philosophy, the present-day organisations believe that leadership is essential for organisational sustenance. Daft defines leadership as the influence relationship among leaders and followers who intend real change and outcomes that reflect their shared purposes (2007; p.4). In an organisational context, the essential eleme nts in leadership include the leader, influence, intention, personal responsibility and integrity, change, shared purpose, followers. These elements, although essential in any leadership concept, are specifically significant in an organisational context because this context brings together leaders by virtue of their position and people with a purpose. Such leadership is assigned leadership (Northouse, 2009). Another form of leadership is emergent leadership, which refers to leadership acquired by one’s actions, and ability to earn followers; this leadership is more commonly found in political groups, and lesser in organisational setups. Leadership has been defined in numerous ways by different people, and from different perspectives. One of the broad definitions proposed by Yuki is that leadership is the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accom plish shared objectives (, p.26). According to Bryman, â€Å"leadership is the creation of a vision about a desired future state which seeks to enmesh all members of an organisation in its net† (1986, p.6). Jackson and Parry (2007) highlight three aspects of leadership, which provide sufficient reasons to explore leadership. These aspects include the contemplative notion whether leaders were born or made; secondly, what are the characteristics of an effective leader; thirdly, what is the difference between leadership and management. These three aspects provide significant insight into the concept of leadership and management. Theoretical construct on the concept of leadership is vast and delves deep into aspects such as individuals’ personality, style, background etc (Contingency theories) along with situations (Situational leadership), culture, perceived values, vision (Visionary and transformational leadership) and even characteristics of followers. Various leadershi p characteristics have been proposed by many researchers, which gave rise to the trait theories of leadership. Some of the traits explained in these theories include intelligence, insight, responsibility, confidence, cognition, self-motivated, emotional intelligence etc (Northouse, 2007). Fiedler’s contingency theory of leadership emphasizes that leader’s effectiveness or the group’s performance is determined by leadership style and situational need. Leadership

Financial Statements Essay Example | Topics and Well Written Essays - 1000 words - 1

Financial Statements - Essay Example However, the different groups use the various financial statements for different purposes. This essay focuses on the four types of financial statements identified above and their importance to internal users such as managers and employee as well to the external users such as investors and creditors. All the financial statements are useful since to individual as well as organizations whose decisions are affected by a company. The financial statement act as an indicator of how a company is performing. Moreover, the statements can be used to predict the future of a company. Balance sheet, which is also, referred as the statement of financial position acts as an indicator of the financial status at a given time. Balance sheet assesses the assets (economic possessions possessed by the entity) and the liabilities (sources of financing) as well as ownership equity. The assets possessed by a company are either classified as current or fixed assets. Current assets can be converted into usable cash easily and include cash, marketable securities, inventory, and prepaid assets. Fixed assets are not easily converted into cash and are awarded historical cost. Fixed assets include buildings, machinery, equipment, and land. Liabilities are those assets owed to creditors (Drake, Fabozzi, & CFA, 2012). Liabilities are categorized as current and non-current liabilities. Current liabilities include notes payable, interest payable, accounts payable, wages payable and taxes payable. On the other hand, non-current liabilities include bonds payable and mortgages payable. Equity is the proprietorship, partnership, shareholders, or stakeholder’s equity in a corporation. Equity owners are claimants of the residue equity after creditors have been paid. Therefore, balance sheet acts as a record of resources owned by an entity and acts as a crucial tool used to evaluate the capability of a firm to meet long-term obligations. Comparative balance sheet is an example of balance sheet (D rake, Fabozzi, & CFA, 2012). Creditors are involved in offering credit, which is a risky practice. Therefore, balance sheets are important to creditors since they use them to assess the wealth possessed by individuals or firms and determine their capability of paying for liabilities incurred. Creditors make use of other financial statements when providing loans to companies. In case companies file bankruptcy, the creditors make use of the information obtained from the various items to recover their money by liquidating the company’s assets (Drake, Fabozzi, & CFA, 2012). Income statement is another important form of financial statement that indicates the net income of a firm. The net income is calculated by subtracting the operating expenses from the revenue or fees earned. Therefore, income statement is reflective of the company revenue or income as well as expenditure. Revenue is the inflows that a company obtains from its operations while expenses are the outflows that a co mpany uses to create revenue. Net income of a company is obtained by adding the revenue to the gains less the losses and expenses. Income statement is thus indicative of the performance of a business (Drake, Fabozzi, & CFA, 2012). Statement of cash flows is a record of a company’s cash flow activities such as the investing, operating and financing undertakings. Statement of cas