Impact of Leadership on Business Performance – Leadership Analytical Concept

Leaders have a difficult task as managing employees becomes more and more demanding and complex. Leadership mechanisms that were valid in the past are not valid today. Competition on the market is increasing and there is less and less room for differentiation. Leadership is an area in which organisations increasingly seek to differentiate themselves. However, to be able to do this it is necessary to understand all the complexity and breadth of leadership, the elements that need to be considered and how they affect each other. Many studies examine individual elements, but none offers a single overarching pattern. Therefore, in the first step of this paper, the goal is to present various studies related to leadership. Based on these studies, a comprehensive analytical framework is proposed. The framework integrates several areas (Environment, Leadership, People, Performance) and represents the mechanism of their mutual influence. This is a novelty in the approach to leadership and as such can be a guide for leaders in making them aware of what they should focus on. Also, this framework could be the basis for future predicative and prescriptive analytics in the field of monitoring employee behaviour and their impact on organisational culture.