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Effect of Leadership on Organization: Essay on Elon Musk

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The aim of this report implies the effect of leadership on an organization to develop the personal skill and behavior of the employees and involvement in achieving the business goal. Leadership has a solid impact on the relationship of an organization and the employees to increase the value, culture, ability of tolerance, and motivational skill of employees. The above discussion is based on the leadership style of Elon Musk, the CEO of Space and its deep impact on the business success of the organization. Space selected Elon Musk as the CEO of the company in 2008 for his charming personality, incomparable business knowledge, and unique leadership quality.

Leadership Definition

Leadership is a motivational art used by an organizational leader for a group of people to provide behavioral guidelines for achieving organizational goals. The interlink between the higher authority and employees is set by a successful leader to exchange information between the two groups. This is a process that is influenced by some social responsibility and must have to maintained people as an employee or human beings. As per the opinion of Bratton (2020), successful leadership can maximize the efforts of other team members or employees and that can increase the overall performance of the organization.

Leadership can be influenced only by social responsibility not by higher authority or any organizational power.

Leadership does not happen if a senior and experienced employee is placed at the top organizational place. Motivational skill, quick decision-making power and an attractive personality with polite and sympathetic behavior are required in the character of the selected person. As per the opinion of Van Wart (2017), a leader must have to be flexible in nature because he has to take the tremendous pressure of the organization with the maintenance of employee rights. Skillful leaders can choose the perfect talented employees and utilize them properly in the proper place.

Leadership theories

The leadership quality of a leader can increase the love and respect to the company by buying all the employees and that has affected directly on the performance of the employees and the organization. Space is an American company that produces aerospace and provides transportation services to space. In 2008, the management selected Elon Musk as the CEO of the company for its unique leadership style. His leadership style is all about continuous learning for the leadership theories perfectly set in the development process of Space. For understanding his leadership style, the leadership theories are going to be discussed. The above discussion is based on the reflection of leadership quality which helped Elon Musk to be the CEO of SpaceX and the richest man in the world in 2021.

● Contingency Theory:

The leadership style of Elon Musk can be classified under the contingency theory perfectly. This theory reflects that a leader must have to be ready to tackle any type of critical situation. Application of this theory can help a leader to collect the idea of whether his leadership style is perfect or not in an organization. As per the opinion of Anderson et al. (2017), Elon Musk is a flexible leader and that is why he has been given the responsibility of Tesla Motors organization with side by side the CEO of SpaceX.

He is the founder of various organizations and this quality has demonstrated his excellent leadership style and potential of management. His contingency leadership style has inspired many other organizational leaders because Elon musk can participate in any task as a common employee and can fit in any kind of changing circumstances. As per the opinion of Anderson and Sun (2017), during the leadership decision, his patience and calmness can be found and that is the most important point of contingency leadership theory. Elon Musk inspires a large number of employees to reach the highest position of success and topmost level of capabilities that they have never thought to achieve. He is the perfect example of the utilization of contingency theory for his leadership behavior and management quality.

● Situational Theory:

Elon Musk is one of the best examples of a situational leadership style, which has helped him to be the richest man in the world. The elaboration power of Elon Musk is very attractive and that is why all the employees can realize the actual target of the company. The selected business plan is properly distributed among the employees after checking their skills and ability. Elon Musk is a good director and that is why he can guide any employee to finish the job appropriately within the deadline. He does not hesitate to participate in any job of common employees. As per the opinion of Asghar and Pino (2017), any casual employee of the organizations under his surveillance can easily contact him.

As a situational leader, Elon Musk has provided various facilities to the employees and shareholders to accelerate their performance. The collaboration between the shareholders, business partners, board and directors of the companies has reached its highest mark and that is why the performance of Tesla has become one of the best electric car-producing companies in the world. He is much delegated in duty and wants to input this quality into the character of all the employees. As per the opinion of Fiaz et al. (2017), he treats all ten employees the same and provides special attention to the employees whose performance was not quite satisfactory. It can be said that Elon musk has adopted the style of situational leadership and implemented it in the organizations under his authority.

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Ethical leadership

The ethical leadership theory demonstrates the conduct of the personal actions of an organizational leader like Elon Musk and the interpersonal relationships within the organization. A perfect leader has to be attentive to this personal behavior in the organization or outside the organization. The employees can take this behavior seriously and want to adopt this quality into their behavior. As per the opinion of (2020), the negative characteristics of a leader can here the interrelationship between two employees or the group of employees with the organization. Elon musk put the common employees under the bigger management responsibility and observes the behavioral change after getting the responsibility. The successful decision of Elon musk can provide ethical satisfaction for being an organizational head.

Elon Musk likes to take the whole responsibility of the failure of any decision and shares the success to all employees of an organization. According to (2021), he has taken all the important business decisions after reviewing the interests of stakeholders, shareholders, employees, business clients, and other business-related parties.


a. Discuss the elected leader's leadership approaches

Elon musk has become the world’s richest person recently as the organizational head of “Zip, Space, and Tesla. Elon Musk has excellent visionary skills in which he can calculate the future of any project with a strong belief in the success of leadership styles. He does oat fear facing any business obstacles and always a second plan behind any strategy. Always inspires the employees by saying that nothing is impossible to overcome aunty's obstacles. His motivating speech provides a new strength to fight again. Elon Musk has been involved in the project, which is related to most of the major industries and environmental problems (Soberer and Enroller 2018). This was his decision to make electric cars, which are not run by petrol or diesel. This decision has proved that Elon musk is a leader who is not a good leader but also a socio-responsible person. Any business-related obstacles have been faced by Elon musk and he provided permanent solutions without wasting any time. His quick decision-making power is one of his biggest positive points of characteristics (Gandalf and Stone, 2018).

Elon Musk is a leader who can treat his business failure as a lesson and this lesson can help him to reduce the possibility of mistakes in future projects. A good leader always pays attention to the task, that he has undertaken to finish. The performance of employees and themselves are measured to find out the rough time and place to start and stop (Rename and Katonah 2017). In a news article, Elon Musk has said that he tries to demonstrate the product and service reviews collected by the employees and changed any decision at any time without any hesitation.

Space has spent many years becoming successful after learning the positive outcomes from numerous failures. He is a successful leader who has dared to plan that Space will send 'the people to Mars by 2024'. Elon musk has varied continuously to perform better than before and he has a hunger to fulfill the goals and objectives of an organization. He always prioritizes learning form other sources may be other companies, or employees (Global, 2017.

b. Challenges he faces in terms of ethical and responsible decision-making.

The ethical leadership of Elon Musk helps the organizations under his surveillance to increase the positive cultural value that is important for overall development. Differences in culture sometimes make a huge lack of communication between the conception of Elon Musk and their employees. They fear asking and share any information with the CEO for being the richest person in the world. Elon Musk can motivate investors to feel that his organizations are very good and dependable. The investors, who have the least capital, cannot get a chance to set up business collaborations with the companies of Elon musk (CSU, 2017). Musk Lovers has become arrogant and started to neglect other companies in the same industry. The organizations of Elon Musk have issues on employee motivation, skill, and empowerment. The management forces employees to work hard with less salary. The reputation attracts the employees and forces them to serve with less salary. This organizational dispute should be observed and analyzed by Elon Musk by using ethical and responsible leadership more effectively.

Elon musk has a tremendous impact on the working culture of organizations. His motivational power of him can influence the employees to put greater effort into their job. The main agenda of Tesla, Space has been fixed by Elon musk and delivered to the employees as they can give the topmost priority to their work. Leadership style of Musk can manage all business-related jobs very confidently for his incomparable leadership and delegation for organizational success. As per the opinion of (2021), a strong sense of vision is provided to the employees to fix the actual purpose of any project or assignment. Leadership can inspire the young generation to be perfect leaders if proper growth and coaching can be provided to him.

Research says that nearly 54% of employees have said that their leader knows exactly what they do in the workplace during the working period. In the organizations of Elon Musk, the leader is so involved with the employees that any movement of them is controlled and supervised by a higher authority. The relationship between Elon Musk and his employees is so strong that they have no chance to be influenced by the culture of other companies (, 2019). Elon musk observes the performance of every employee and provides a reward to them after analyzing their past performance. This can increase the intentional d and ability of the employees of the organizations such as Tesla, and Space.


In conclusion, it can be said that the leadership quality of Elon Musk is an example to be followed by an organizational leader. The culture of the organizations can be affected by the leadership quality of a leader like Elon Musk. The success of the organization depends on the overall performance of the employees and the employees have copied the major characteristics of Musk. Contingency and Situational Leadership is copied by Elon Musk to motivate the employees. Most importantly, the success of a leader depends on the overall success of organizations and the above discussion is the best example of this statement.

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Effect of Leadership on Organization: Essay on Elon Musk. (2022, December 27). Edubirdie. Retrieved December 6, 2023, from
“Effect of Leadership on Organization: Essay on Elon Musk.” Edubirdie, 27 Dec. 2022,
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Effect of Leadership on Organization: Essay on Elon Musk [Internet]. Edubirdie. 2022 Dec 27 [cited 2023 Dec 6]. Available from:
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