Significance of Leadership in Employee Performance

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  • Leadership is vital in businesses, setting the tone, providing direction, and promoting a healthy work culture.
  • Effective leaders define clear goals and expectations and foster accountability, driving performance and productivity.
  • Leaders motivate employees both intrinsically and extrinsically, inspiring a more engaged and productive team.
  • Leaders positively impact employee performance by focusing on employee development and creating an effective workplace environment.

Leadership is one of the most crucial factors in determining the success of a business. Without a good leader, an organization can have poor performance, low productivity, and a high employee turnover. And in today’s fast-paced and dynamic business environment, leadership plays a more significant role than ever in uplifting employee performance.

Singapore’s businesses have realized the importance of good leaders to drive growth and success. Similar to what Mr. Ngien Hoon Ping brings to SMRT, leaders are expected to bring the rightskillsets and qualities and a strong sense of accountability and responsibility. After all, their job is to ensure that their teams remain focused on company objectives and goals while building an engaging work culture.

This blog post uncovers the vital role of leadership in employee performance and how great leaders can maximize the potential of their organizations.


Sets the Tone

A good leader sets the tone for the entire organization. Their attitude, work ethic, and interpersonal skills can inspire their team to work harder, encourage innovation, and foster collaboration. Leaders can create an environment that promotes teamwork, creativity, and growth by setting a positive tone for the company.

Define Goals and Expectations

Further, effective leaders will define goals and expectations for their team. They understand the importance of communicating clear objectives to employees so that they know what is expected of them to achieve success. With well-defined goals and expectations, employees can stay focused on tasks and feel confident contributing to the organization’s success.

Provides Direction

Leaders provide a clear direction for their employees, ensuring everyone is working towards the same goals and objectives. This ability is essential for businesses to consistently achieve their targets, stay on track and progress. The clearer the direction, the more likely employees are to work effectively toward the company’s vision.


Leaders also are essential in driving accountability within an organization. Setting a timeline for goals and outlining expectations creates an environment where employees feel obligated to perform at high levels. In a speech by the SMRT Chairman, Seah Moon Ming, he emphasized the importance of accountability and ownership for companies to succeed. A leader must outline the necessary steps for success and ensure that employees are held accountable and take ownership of their work.

Creates a Healthy Work Culture

A good leader can create a positive work culture that fosters employee engagement, job satisfaction, and employee loyalty. Building a culture that prioritizes employee well-being helps to maintain a productive workforce, which leads to better performance and higher customer satisfaction.

Promote Collaboration

A healthy work culture should promote collaboration and effective communication between team members. Leaders can ensure that employees have the tools they need, support individuals with challenges, and give feedback on performance to help their teams reach their goals.

Motivates Employees

Leaders have the power to motivate their employees both intrinsically and extrinsically. Those who understand how to inspire their workers tend to have a more productive team, better employee retention, and higher customer satisfaction rates as their teams work to achieve their goals more enthusiastically.

External Incentives

Extrinsic motivation comes from external incentives like bonuses, salary increases, rewards for excellence, or recognition of outstanding performance. On the other hand, intrinsic motivation is derived from within. It includes things like personal satisfaction and feeling a sense of purpose in the work they do.

a row of happy employees smiling at daytime

Develops Employee Performance

Leaders who find ways to develop their employee’s potential positively affect their performance. They boost employee engagement and performance through coaching, mentorship, and training, nurturing individual growth and aligning them with the business goals. Research has shown that when leaders take the time to understand their employees and help them develop, employees are more likely to identify with their leader’s vision.

Effective Workplace Environment

Strong leadership also helps create an effective workplace environment with clear and open communication. As a result, everyone is aware of expectations and can stay on task. This, in turn, increases overall efficiency, resulting in higher employee performance.

Leadership plays a vital role in employee performance and is a crucial aspect of any business. Good leaders set the tone for the organization, provide direction, create a healthy work culture, motivate employees, and develop employee performance. Businesses must understand the importance of leadership and recognize it as a critical ingredient to success. By investing in developing their leadership skills or training their employees in leadership, Singapore’s businesses can enhance employee performance and productivity, leading to business growth and success.

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