Leadership fundamentally influences how employees behave—impacting culture, motivation, performance, and the organisation’s ability to respond to change. Whether transformational, collaborative, or task-oriented, leadership styles shape organisational norms and outcomes. Below, we explore how Help CIPD Assignments organisational behaviour, supported by theory and modern evidence.

1. Leaders Set Vision, Culture & Expectations

Leaders define the organisation’s vision, mission, and values—and embody them through their behavior. Employees naturally look to leaders as role models; their attitudes, tone, and priorities become the tacit norms of daily work life The Economic Times. When leadership consistently models integrity, fairness, and purpose-driven behavior, it fosters a culture of trust and shared commitment.

Conversely, leaders who act unpredictably or contradict stated values create confusion and disengagement. The infamous example of Baidu’s fearful management approach highlights how leadership based on fear violates principles of autonomy and undermines organizational morale Financial Times.

2. Influence Through Leadership Styles

Transformational Leadership

Transformational leaders inspire higher motivation, stimulate intellectual engagement, and attend individually to followers. Research shows that transformational behaviors—idealized influence, intellectual stimulation, and inspirational motivation—boost organisational citizenship behaviors and employee engagement more than transactional methods MDPI. Studies in Malaysia and broader settings consistently find stronger effects from transformational leadership on citizenship behavior than transactional leadership SA Journal of Human Resource Management+6SA Journal of Human Resource Management+6Emerald+6.

These leaders also help manage change more effectively by aligning followers with new visions and encouraging adaptability A Human Agency+6ResearchGate+6Richard Reid+6.

Transactional Leadership

This style focuses on clarity: setting goals, monitoring performance, and rewarding compliance. While transactional leaders can drive efficiency and clear expectations, this style may not foster creativity or discretionary effort unless reinforced by other influences SA Journal of Human Resource ManagementMDPI.

Task-Oriented vs Relationship-Oriented

Insights from Ohio State and Michigan leadership studies underscore a balance between task orientation (initiating structure) and relationship orientation (consideration) The Economic Times+9Wikipedia+9Wikipedia+9. Task-focused leaders maintain productivity and processes, but relationship-oriented ones build cohesion, psychological safety, and team learning. When combined, these approaches help leaders both drive outcomes and nurture positive culture.

3. Leadership, Engagement & Organisational Citizenship

Employee Engagement & Retention

Leadership behaviors strongly predict job satisfaction, retention, and commitment. Transformational leadership clarifies roles, boosts engagement, and helps retain talent by offering respect, empowerment, and personal development opportunities ProQuest.

Studies show employees led by empowering, participatory leaders are less likely to leave and more likely to exceed expectations.

Organisational Citizenship Behaviour (OCB)

OCB—voluntary, discretionary behaviors that go beyond formal roles—is highly influenced by leadership. Transformational leadership promotes OCB more effectively than transactional styles, especially when supported by inclusive leadership and a culture of trust and psychological safety Emerald.

Inclusive leadership especially fosters learning behavior and initiative by nurturing psychological safety—enabling employees to take thoughtful risks without fear of reprisal Emerald.

4. Leadership’s Role in Change & Culture Building

Change Management & Cultural Resilience

An effective leader anchors organizational behavior during periods of transformation. By clearly communicating the rationale, involving teams, and modeling new behaviors, leaders guide adaptive change and minimize resistance Brand Experiences.

They also shape culture over time. Research confirms that organisational culture often reflects leadership values—such as autonomy, collaboration, or innovation—and that transformational leaders actively help cultivate these traits A Human Agency.

Reward and Recognition Systems

Leaders reinforce desired behaviors through recognition, rewards, and feedback. Systems aligned with organisational values (e.g., innovation, collaboration, customer-centricity) encourage repetition, ownership, and cultural alignment SA Journal of Human Resource Management+15Richard Reid+15A Human Agency+15.

Proactive leadership in conflict resolution, fair treatment, and transparency further strengthens trust and cultural cohesion.

5. Leadership Models That Impact Organisational Behaviour

Shared & Collaborative Leadership

Shared leadership—where leadership is distributed among team members—often boosts team performance and cohesion more than traditional hierarchical models. It promotes ownership, trust, and active engagement among team members Brand ExperiencesWikipedia.

In settings requiring collaboration across functions or external partnerships, collaborative leadership supports adaptability and shared problem-solving.

Ethical Leadership in Complex Environments

In contexts like AI governance or diverse workforces, ethical leadership becomes critical. Leaders who prioritize transparency, fairness, and inclusion shape organisational norms that value trust, accountability, and responsible innovation arxiv.orgBrand Experiences.

6. Why Leadership Matters in Today’s Workplace

Professional Training vs ‘Accidental Managers’

In many settings—particularly in the UK—most managers are promoted based on technical ability, not leadership training. This often leads to toxic management, turnover, and disengagement thetimes.co.uk. Formal leadership development and standards (e.g. chartered status via CMI) improve motivation, workplace happiness, and retention.

Well-Being & Productivity

Employees are happier and more productive when leaders model respect, empowerment, and a sense of belonging. Leadership behavior sets the tone for psychological safety and positive culture—with tangible effects on well-being and performance thetimes.co.ukFinancial Times.

7. Developing Leadership to Shape Positive Behaviour

Leaders can deliberately influence organisational behavior through the following tactics:

Model desired values and behaviors daily—integrity, fairness, purpose-driven action.

Choose leadership styles mindfully—mix transformational, relationship, and task leadership as required.

Encourage shared decision-making—empower teams and involve employees in shaping solutions.

Build psychological safety—through inclusive leadership, open communication, and feedback loops.

Align reward systems with culture goals—recognize contributions that support collaboration, innovation, and ownership.

Invest in leadership training—professional development equips leaders to influence culture positively and reduce turnover Richard Reid+1The Economic Times+1.

Promote ethical frameworks—especially in technological or diverse environments, ethical leadership builds credibility and future-readiness.

8. Benefits of Strong Leadership for Organisational Behaviour

Outcome

Impact of Effective Leadership

Employee Engagement & Retention

Higher job satisfaction, loyalty, reduced turnover

Organizational Culture & Citizenship

Positive norms, voluntary collaboration, trust

Performance & Productivity

Clear goals, accountability, innovation

Resilience During Change

Agility, adaptability, reduced resistance

Talent Development and Learning

Growth culture, continuous improvement

Ethical and Inclusive Practice

Fairness, belonging, psychological safety

Conclusion

Leadership is not peripheral—it is foundational to how an organisation behaves, adapts, and thrives. From modelling values to managing change, shaping culture, and retaining talent, leadership influences every aspect of organisational life.

Transformational, inclusive, and collaborative leadership styles foster engagement, innovation, and citizenship behavior. Transactional and task-oriented leadership can deliver structure and clarity—but work best when balanced with engagement and empowerment.

In times of disruption, professional development and ethical leadership become even more essential. Leaders who embody vision, communicate clearly, and align behavior with values not only guide but uplift organisations.

Strong leadership shapes high-performing, motivated, and adaptive organisations. By choosing how leaders lead, we choose the behaviour of the entire organization.