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This essay will highlight different styles of leadership that are present in the financial sector and what is their impact on the organizational performances. Further its also puts light on the fact that the styles of leadership also affect to promote positive employee attitudes as well as behaviors for commitment amongst them that give rise to job satisfaction which gives rise to impacting the organizational performance and for the better (Anderson and Sun, 2017). These styles are transformational style of leadership, ethical leadership styles and employee commitments that are needed both in public and private sector organizations that can help to improve the overall organizational performances and will be followed by a conclusion stating a summary of all these main points. Today, the market environment is volatile and very different from the way it used to be years before and this means that it needs true leaders who can drive it towards not only success but sustenance in the long run to make sure that they are able to survive the fierce competition in the long run. This calls for effective styles of leadership that is needed in every type of sector to help them manage this type of market environment.

Leadership and Financial Sector – Financial Leadership

Any sector it may be, strong leadership has a crucial role to play to make sure the organizations that are a part of the sector are sustainable in the market. Financial sector is one sector today that is resilient and very competitive with a volatile environment and in this type of market survival in the long run requires leaders who are able to maintain good health in today’s fierce market (Qing, Asif, Hussain, & Jameel, 2020).The organizations in financial sector need good leadership styles to make sure they are financially adaptable by having a through understanding of the financial health. They can use this as a part of the communication in order to demonstrate the connection strategically between money and mission of the organization and this is possible only through financial leadership.

Today, the leading CFO’s of big organizations claim that they need financial leadership in order to bring their finance teams to some next level so as to drive the overall business performances. Apart from this, management accountants and other book keeping professionals also feel that they need financial leadership that can help them advance their careers ahead with financial knowledge and expertise so that all this can be channeled to create financial success for the organization(Herrity, 2023). One of the best-suited leadership styles here is transformational leadership style that involves bringing changes in the organization and its people by motivating them to increase their standard and achieve what is beyond their imagination. These leaders only expect the best from their teams and keep pushing them till they get completely transformed in their work, life as well as a person. They motivate their teams to go off grid that is beyond their comfort zones to get more than what they are capable of and take the high growth organizations ahead to push their boundaries and grow.

The transformational leaders should be having higher levels of integrity and come with a shared vision of their future that is needed to take care of the financial sector, which is becoming more and more complicated. The finance sector is such that needs professionals that can take a broader and expanded role in the process of decision making as well as developing such type of financial strategies as they are the ones who are the real architects of business value and this means they must be forward thinking with ability to develop strategic plans. Having a shared level of trust between themselves and the employees that helps to get higher productivity and engagement does this.

Another type of leadership that sounds apt for the financial sector is ethical style of leadership which revolves around the fact that there needs to be proper respect for ethics and values including rights and dignity of others. This includes values like honesty, trust, integrity and fairness that are all needed in the field of leadership(Guo, 2022). So, this type of leadership can help provide the businesses the much needed value in the financial sector by helping the employees get inspired to be more motivated so that they can stand up to the values of the company. Ethical leadership is one of the leadership skills that are needed to have more employee satisfaction and low turnover rates that is really important for the financial sector today. These types of leaders are demonstrating more ethical and appropriate behaviors in any situation and at the same time make sure to maintain their integrity in the process of leadership.

In financial sector, it is needed that ethical leaders create such type of work culture that is ethical with fair governance of the working environment and clear set of rules instead of politics. Finance functions needs to have such type of doing that will help to correlate, regress and join the dots of data so as to have more insights that can help them make much more data informed decisions and this calls for ethical leadership. They will help to shape up the future business goals and at the same time allow to improve the decision making and financial strategies including providing financial safety to the organizations(Zhang, 2018). In Financial sector, every organization should have accurate information and financial visibility all across the organization and with changing needs of traditional financial departments; the needs of ethical leaders are a must today.

Another key factor needed is the point of employee commitment in public and private sector organizations so as to help the business be flowing smoothly and positively. This includes the level of participation, emotional attachment of employees and identification of their attachment to the company that shows devotion towards the corporate principles including their inner pleasure. The individuals today are able to incorporate ethics into their leadership goals and helps to utilize the same so as to keep their followers more accountable in the financial sector. The employees that are more committed get to demonstrate the loyalty, productivity, loyalty and establishing a healthy workplace culture overall with a consistent work and active involvement. This is their consistency that helps to promote efficiency, creativity and general performance that results in a resilient and vibrant organization in the end.

Impact of Financial leadership on Organizational performance

Financial leadership puts a positive impact on the organizational performance today because it includes styles like ethical and transformational leadership that helps to promote positive employee attitudes and behaviors for commitment and also for job satisfaction. There are findings that prove the fact that importance of leadership in helping the firm foster their financial performances in the way to describe how the different styles of leadership is helping to influence the readiness of employees towards changes for better and strengthening the relationship between the leadership and financial performance of the organization(Karamat, 2013). With such effective leadership styles around financial sector, the organizations are able to thrive well because these leaders are able to guide the teams to achieve strategic objectives and at the same time helping to get such culture that promotes innovation, collaboration and improvement that is continuous. Ethical leaders have the capability to reach to their complete potential and then navigate in such a manner that helps to manage those challenges and grab newest possible opportunities. These types of leaders are like a role model due to their dependency on moral integrity and honestly that further helps to take moral business decisions that are in favor of the organizational performance and leads to ultimate success(Katsaros, 2020). This is true because leaders make decisions that impact the organizational performance in a great manner and their approach to decision making can influence the organizational behavior significantly. So, these styles of leadership are appropriate enough to make sure that there is prosperity and economic growth to the organization as well as the employees of the organization and hence appropriate leadership styles can help impact the organizational performance of many sectors including the financial sector.


So, to conclude this, effective leadership styles are needed for progress of any type of sector and financial sector is one of the most crucial sectors in any organization today. This needs leadership styles like transformational and ethical that can help the leaders prepare to make informed decisions that work positively for the company. At the same time they do not forget their integrity and honesty to make sure that they are ethically responsible for their actions and this makes them refrain away from any such acts that can prove to be unethical. Apart from this one more point that can help to achieve great performance of the organization is employee commitment to their work that helps to enhance job satisfaction and also helps them to give their hundred percent to work that prospers their style of working as well as the organization. Overall, all these are seen to be helping the organization have a positive impact and this leads to the success of the organization in the financial sector in both private as well as public sector today.

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  • Posted on : November 27th, 2023
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