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Islamic
Leadership, Organizational Culture and Business Performance

 

Effective
leadership must have these abilities such as persuade talk, guides and give the
right way to the employees. (Majali, 1990).These type of behavior help in supplementary
Islamic leaders to be improved, honest, kind, perform self-control, and keep
away from being hesitant in dealing with their daily actions. Hakim (2012) concluded
by the study on Islamic leadership and performance in the Indonesian financial institution
that there is an important effect among Islamic leadership and performance. According
to the finding of his statistical analysis using Partial Least Square (PLS)
method, Organizational performance Influenced through Islamic leadership (Kotler
JP and Heckett (2005), on paper: Leadership and organization development(LOD)
investigated regarding company culture and impactful presentation which used
and counted the strong indicts of organizational culture and used correlation
analysis. According to the result of this research some points are here: (a) employees
performance increased by the significant influence of organizational culture,
(b) organizational culture considered as vital dynamic in determining the achievement
or disappointment of business inside the next decade, and (c) although it’s not
easy to alter, organizational culture can be made to enhance the success / workers
performance. Elenkov (2002) on Journal Business Research investigated the impact
of leadership with running inspiration in staff’s performance. The researcher concluded
that: (a employees performance directly influenced by leadership (b) through
working motivation, workers performance indirectly influenced by leadership,
and (c) hold of effective motivation was stronger as dominant variable of
leadership toward workers’s performance. Shea,(1999), on Journal: Of Business
Research, investigated about the leadership prevailing toward performance of staff.
The quantitative research method used, which stressing on theory test in the
course of dimension of investigate variable with number and data analysis during
statistic procedure. In spite of analysis test instrument, statistical exam instrument
was used. The result of research showed that leadership style has great influence
toward workers performance. Bernard (1995), on Journal: Leadership and
organization development (LOD) investigated about the affiliation among
organizational culture and worker’s performance. Quantitative research method used,
which stressing on the theory test throughout measurement of research variable
with number and doing data analysis during statistic procedure.  Correlation analysis was used as statistical test
instrument. But result of this investigation concluded that organization
culture and employees performance are depended on each other. In addition,
Dessler (2006) declared that the victory of an institute depends significantly
on the behavior of its leadership. According to the further research of Islamic
leadership and management performance by Majeed, Khalid & Khan,(2011), it showed
that there is affirmative and considerable correlation among Islamic leadership
components(values/ethics and management by example) and managerial performance.
All the magnitude gives positive effect to the managerial performance. In
general, organization can get better their performance by having good role
model who follows the Islamic key attributes in order to seek Allah (SWT)
blessing. It exposed that Islamic leadership practices work out a critical
influence of management performance (Abbasi, 2008).

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From the above argument the
researchers recommended that there are different Islamic leadership styles and
four types of managerial cultures; as clan, adhocracy, market, and
hierarchy culture have important affiliation with Organization
Performance.

 From the Literature Review this paper
identifies the gap that there is lack of research in the prospective
such as the Islamic leadership that may influence organizational performance
using Organizational Culture as a mediator inside the modern business of Pakistan. However, this study will be finding the influence among Islamic
leadership style and Organizational Performance using organizational culture as
a mediator variable inside modern business of Pakistan. This study is the opportunity
of a company leader checklist or briefing. The briefing or checklist might emphasize
the more considerable attributes that appeared to provide to organizational
performance. Such a instrument might verify valuable to lending agencies or
government institutions as further data in their decision-making process.

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