How Does Leadership Affect Employee Morale and Customer Service?

Many business retailers are struggling in the present economy. However, despite struggles within the retail industry, off-price retail is growing exponentially thus taking the market share from failing corporations. Off-price retail carries similar merchandise to department stores at a fraction of the price oftentimes up to 70% off. However, this low price can come at a huge cost to the retail customer. Outstanding customer service still helps to drive the overall success of a company. Those who manage others are often compelled to worry about purchasing and marketing rather than focusing on a relationship-motivated style of leading employees through shared decision-making and collaborations. This lack of engaging employees can possibly create hostility, apathy or low morale which creates a less productive workforce that impacts sales and customer relations. This paper explores the following question: How does leadership affect employee morale and customer service? Because leadership sets the tone for the whole organization, an effective leader to continually develop productive team players. Good leaders believe in their teams and teach their teams how to believe in themselves. However, certain styles of leadership work best in different work environments. First, this paper will cover leadership effectiveness with the 5M Leadership Model and L.E.A.D.E.R.S. Developmental Model (Dittmar and Stanko, 2018, p.25). Second, we will explore what types of leadership work best in a retail setting using David Goleman’s Six Styles of Leadership. Lastly, we will explore how to make positive changes to benefit the leader so employee morale is enhanced