Leadership can be both a property and a process; however, it’s the influence process that draws our concern. The concept of the influence process for leadership is the ability to non-coercively influence the shaping of a group’s or organization’s goals, motivate behavior toward the goals, and define the culture of the group or organization. Hambrick (2007) theory was that leaders within the upper echelons behave on the foundation of their personal views and understanding of strategic situations, as well as their cultural values, personal experiences and individual personalities. The main idea is that leaders have the ability to influence or change an organization or group. There as six ways that a leader actually influences a process on an organization or group.
Having the ability to make direct decisions allows a leader to shape the performance and path an organization or group should go or the way in which the leader wants it to go. This is ability is managed by the leader influencing the group with a specific mission and vision. The mission and vision is what the leader wants for the organization or group to actually follow. By affecting the cultural values of the organization, the leader is now influencing the process of their strategy. Being a part of management or upper level management, you will have the ability to reshape their strategy very easily, therefore, setting the path and making decisions for the organization or group.
In addition to direct decisions, the allocation of resources and reward systems also have a significant impact on the culture of an institution or its employees ( Nahavandi, 2012). These leaders are the top decision makers on the allocation of resources to both individuals and organizational units. The allocation of resources is also another way upper echelon leaders have significant impact to an organization. However, reward systems are not only limited to monetary gain, but also through the selection and