An organization begins its journey to existence through various steps. The entrepreneurial phase is the first step where ideas about the organization emerge and the necessary conditions for the birth of an organization established. The formalities for formation then commence and the organization is born. The people in the organization determine the social structure. The authority comes from the people at the bottom and not those at the top as portrayed by the organizational structure hierarchy. A new organization possesses these characteristics, which enhance its productivity.
Barnard supports the idea that leadership is crucial. The importance of leadership in an organization is persuasion of the people within the organization to ensure achievement of the set goals. Leadership also enhances cooperation of the people and ensures consistence. Issues posed by the nature of diversity among humans can be solved through leadership and ensure they work towards a common goal. This results in satisfaction of the employees and other people dealing with an organization. Barnard explains the role of a leader is enhancing the social structure in an organization, which is crucial for the success of the organization. He insists that values are a necessary and effective driving force for managers, unlike manipulation. Barnard describes the role of a leader as that of guidance and motivation for employees to promote cohesion.
Barnard’s assumption is based on the influential nature of a leader. He insists on the importance of instilling values on employees instead of manipulation. In the current world, everyone is entitled to his or her opinion and organizations have revolutionized their management structure to include the ideas of the employees, which are implemented. This proves that every employee is a leader and employees posses more influence on the operations of an organization, clearly demonstrated in their trade unions.