Everything you need to know about the importance and significance of leadership in management. Leadership function is a matter of pushing people until they do what the leader wishes them to do.

Leadership is primarily a matter of removing barriers so that people can act with freedom and independence. Leadership, encourages and stimulates action from workers by innovating them in planning and decision making activities.

Good leadership is essential to business, to Government and to the numerous groups and organisations that shape the way we live, work and play.

Leadership is an important factor for making an organisation successful. Leadership transforms the potential into reality.


The importance of leadership includes:- 1. Motive Power to Group Efforts 2. Aid to Authority 3. Emphasis on Human Performance 4. Integration of Formal with Informal Organizations 5. Basis for Cooperation 6. Clear Vision 7. Effective Planning 8. Inspiration and Motivation 9. New Idea 10. Employee Relations

11. Maintaining Integrity 12. Crisis Management 13. Inspires Employees 14. Secures Cooperation 15. Creates Confidence 16. Provides Good Working Climate 17. Influence to Work More 18. Provides Guidance and Direction 19. Leads the Followers 20. Discovers New Methods 21. Development of Team Spirit and a Few More.

Importance or Significance of Leadership

Importance of Leadership – Motive Power to Group Efforts, Aid to Authority, Emphasis on Human Performance and a Few More

By analyzing the functions of leadership, the importance of leadership in management can be stated under the following five heads:

1. Motive Power to Group Efforts:


Managements, for getting the work done by others, is to supply leadership in the organisation. As group efforts and teamwork are essential for realizing organizational goals, leadership, becomes vital for the execution of work.

Through the exercise of leadership, managers can influence any group of human work accomplishment. Leadership pulls up the group to a higher level of performance through its work on human relations.

2. Aid to Authority:

Managers exercise authority in managing people of the organization and their task becomes easy wherever they are aided by leadership. There are serious limits to the use of authority and power in obtaining high performance. Authority alone can never generate the initiative and resourcefulness required in many jobs.


But leadership can obtain tangible and improved results of human efforts because of its main reliance on influence. Leadership contains all the essential ingredients of direction for inspiring people and providing the will-to-do for successful work accomplishments.

3. Emphasis on Human Performance:

Effective leadership is needed at different levels of management from top management down process through its leadership action. It is the social skill of leadership that accomplishes objectives by mobilization and utilization of people.

The best of the plans can be foundered and the ideal organization structure can be shelved by the deliberate restriction of human efforts at the operating level. High performance of working people is the focal point in managerial work. And this high performance can be secured by leadership of supervisory management.


4. Integration of Formal with Informal Organizations:

If management fails to provide competent leadership, informal leadership will prevail over management in controlling and regulating the behavior of employees. Being confronted with such a situation, management fails to influence workers, to improve their performance and to stop employee unrest.

Leadership is the natural accompaniment of all associations of human beings. For their personal and social contentment, workers are performed to rely mostly on informal leadership if management cannot provide effective leadership. Competent leadership can, however, integrate informal organizations with formal organization and utilize them constructively for achieving company objectives.

5. Basis for Cooperation:


Leadership provides the basis for cooperation in several ways. Good two-way communication, man-to-man personal relationship, use of participation and creation of opportunity for need satisfaction are meant for increasing understanding between the leader and his subordinates of their mutual viewpoints. This increased understanding obtained through the interactions of individual personalities promotes favorable feelings and attitudes among them.

Importance of Leadership – 7 Points that Reflect how Leadership is Important for Organisations: Clear Vision, Effective Planning, New Ideas and a Few More

Leadership characteristics or features can be learned over a period of time in accordance to knowledge and experience. In absence of leadership, organisations cannot work efficiently.

The following points reflect how leadership is important for organisa­tions:

Importance # 1. Clear Vision:

Leadership is important because it sets a clear vision and commu­nicates effectively to subordinates/colleagues. The clear vision gives them a better understanding of organisational direction and makes them realise their roles and responsibilities. For example, an online retailer intends to provide his customers with best online shopping experience with a smart searchable website, easy-to-follow instruc­tions, clear and secure payment methods, and transparent delivery system that allows customer to track their shipment on real-time basis. Accordingly, employees are directed towards providing and maintaining relevant internet tools to cater to their customers efficiently.

Importance # 2. Effective Planning:


Leadership entails generating a structured plan of action every day that will effectively meet pertinent goals on a given day. For example- the manager and his/her subordinates in a production plant meet 30 minutes before official office hours to decide on the number of orders to be manufactured on that day, number of items of raw materials required to complete those orders, mode of transportation and delivery schedules for prior or current orders, etc. Managers-subordinates chart out (‘To-Do’ list) the plans for the day and schedule deadlines for in-between tasks for completion before office hours begin. When working hours begin, managers/ subordinates become aware of their work and responsibilities for the day.

Importance # 3. Inspiration and Motivation:

The commitment and enthusiasm of a business leader also restore and revive commitment and enthusiasm of their subordinates/ colleagues. Inspiration and motivation can be enabled by demonstrating daily tasks, coaching, providing immediate feedback, recognising accomplishments, etc.

Importance # 4. New Ideas:

Leadership entails discussing and activating new ideas among sub­ordinates/colleagues. It enables a positive environment to exist by making use of diverse experiences and ideas to improve in a business. For example, Starbucks, USA asks their employees and customers to come up with new ideas on coffee flavours and breakfast menu, which can be introduced in their retail outlets. One of the ideas inclu­ded “short” sized non-caffeinated fraps (a drink) as an option for children.

Importance # 5. Employee Relations:

Leadership entails an open and engaging relationship between the leader and their team members. It develops a sense of ownership and a close alignment between individuals and team objectives. For example- Delhi-based, HCL Technologies promotes innovation under their philosophy “Employees First, Customers Second”. The myth that top management created strategic value was dismissed by HCL under this philosophy which empowered employees with knowle­dge, resources and infrastructure to come up with innovative ideas (HCL, 2014).

Importance # 6. Maintaining Integrity:


Integrity means the quality of being honest and leadership aims at maintaining and restoring integrity among subordinates/colleagues. For example, Bengaluru-based, IT- Company, Mind Tree Ltd. posts accounts of its employees’ ethical violations and failures (lying accountant, misusing cell phone, falsifying prior work experience, etc.) on the company’s intranet. Subsequently, they discuss the resulting output and ensure that employees are accountable to management and vice-versa.

Importance # 7. Crisis Management:

Crisis management is a situation by which an organisation faces a sudden emergency situation. Leadership process is extremely tricky but useful during such situations. Organisations can avert or overcome a crisis only if a leader acknowledges and faces reality. Leadership cannot ignore any bad news or situations the organisation faces because if not rectified, these situations can get worst.

Leaders should communicate with subordinates/colleagues to find suitable solutions for getting out of crisis. While a crisis has emphasised negativity, it also has a positive undertone. The positive undertone creates a path for new ideas, innovation and experiences to tackle any new form of crisis.

Importance of Leadership – Inspires Employees, Secures Cooperation, Creates Confidence and Provides Good Working Climate

Leadership helps an organisation in the following ways:

Way # 1. Inspires Employees:

A leader creates a strong urge in employees for higher performance. He lifts a man’s visions to higher sights. By show­ing the proper way to do a job, a leader helps employees to give their best to the organisation. As pointed out by Terry, leadership triggers a person’s will-to-do and transforms lukewarm desires for achievement into burning passions for successful accomplishment.


Way # 2. Secures Cooperation:

A dynamic leader breathes life into the group. He influences the behaviour of employees in such a way that they readily work for organisational objectives. He makes them realise that by translating plans into action, they can earn adequate rewards. He, thus, inculcates a sense of collectivism in the employees and forces them to work as a team. Leadership is essential to group action. Without sound leadership, cooperative action is impossible. Leadership provides character to the group and paves the way for integrated efforts at various levels.

Way # 3. Creates Confidence:

Employees often suffer from emotional problems in organisations. They get frustrated because of their inability to do cer­tain jobs, to secure promotions, to sharpen their skills, to get along with people, etc. A leader comes in here, renders wise counsel and tries to remove barriers (real or imaginary) and instills confidence in employees. He creates a wholesome attitude among employees for successful work accomplishment. He transforms potential into reality. He makes them realise their potential by showing the right way, clearing the paths and removing the hurdles.

Way # 4. Provides Good Working Climate:

A leader provides a healthy work climate where individuals can work toward objectives happily. He ini­tiates necessary changes and unifies efforts of employees. By making a judicious use of time and money, he takes up assignments on a priority basis. Important problems are tackled first through prompt actions. Subordinates are allowed to do things independently. Their problems are looked into and suggestions taken note of. He provides imagination, foresight, enthusiasm and initiative to employees and forces them to have an identity of interest, outlook and action.

Importance of Leadership – Influence to Work More, Provides Guidance and Direction, Leads the Followers, Discovers New Methods and a Few More

Leadership is a matter of pushing people until they do what the leader wishes them to do. Leadership is primarily a matter of removing barriers so that people can act with freedom and independence. Leadership encourages and stimulates action from workers by innovating them in planning and decision ­making activities.


Following points indicate the importance of leadership:

1. Leadership Influence to Work More:

Main function of leadership is to influence others. This he does through showing his own interest in the work. He being positive towards the work can automatically may others work with the same interest and zeal.

2. Leadership Provides Guidance and Direction:

Main characteristics of leadership are the ability to guide and direct the followers. The leader guides the followers away from the problem areas and leads as well as directs them on right path to do the jobs effectively.


3. Leadership Leads the Followers:

Some people are not in a position to work independently. They require someone to lead and guide them. They believe that they can do better if they are led by someone. This someone is a leader. The leader, therefore, works him and automatically others follow him.

4. Leadership Discovers New Methods:

He has to try to implement organization’s policies and programmes designed to achieve objectives. He has to resort to various methods for getting the jobs done by his team. Many times, existing methods may not be capable of providing motivation. In such circumstances the leader has to discover new methods and initiate them for the purpose.

5. Development of Team Spirit:

A leader is a person who leads a group. The group members believe in him. The leader, by this, induces, persuades his members to work honestly to give maximum contribution. The leader has to develop team spirit in the group because, without this, work cannot be done effectively. Once the leader is successful in developing team spirit in the group, half of the work is as good as done.


6. Creation of Confidence:

The leader, in order to get the work done properly, has to take his followers in confidence. He has to listen to their problems and difficulties and has to solve them, by giving proper guidance and direction. This creates confidence in the followers’ workers. He has further, to give them proper training, education and clear instructions. Thus, an employee is made more confident to perform for better them others.

7. Excellent Time Management:

A leader is further responsible to make maximum and proper use of the available time, as he has to complete the assigned jobs in stipulated time period, he therefore, cannot afford wastage of time on any other job or on any unproductive activity. He therefore, has to see that his work force does not get bored and exhausted. All this can be done if the time management is made properly and efficiently. Naturally leadership leads to excellent time management.

8. Builds High Moral among People:

High moral among the employees is essential for making organization successful. It is the duty or responsibility of a leader to develop and maintain high morale among the employees. Moral denotes the attitude of employees towards organization, its objectives, management and their willingness to offer their hones contribution to the organization. The employees having high moral are found to be happy and satisfied in an organization. Rather high morale is the outcome of worker’s happiness and satisfaction.


9. Effective Utilization of Resources:

A leader utilizes human and non-human resources to maximum extent for productive purposes. At the same time he uses both resources efficiently and effectively. It leads to maximum wastages, sometimes there would be elimination of wastages also.

Importance of Leadership – Leadership is Indispensable, Accomplishment of Organisational Goals, Motivates the Subordinates in the Work and a Few More

Leadership plays a vital role in management. Good leadership is an integral part of effective direction. It provides the vital to morale of human beings. Morale has its roots in good human relations, which in turn, can be fostered and toned up by leadership.

The statement of Koontz and O’Donnell that “managers should be leaders, leaders need not be managers” explains the importance of relationship in management. It is very true, the whole part of a manager’s job involves getting things done through people is undoubtedly made easier when the manager is a skilled leader.

Peter F. Drucker an original thinker on management, “considers ‘leadership’ as a human characteristic which lifts a man’s vision to higher rights, raises a man’s performance to higher standards and builds a man’s personality beyond its normal situations.”

Further, the importance of leadership may be studied under the following heads:

(1) Leadership is Indispensable:

Leadership is indispensable in managing the affairs of an organisation successfully and effectively. An organisation, however good it is, cannot be run effectively without effective leadership. It must be led by an effective leader in order to achieve the organisational objectives by directing the efforts of the sub-ordinates in that direction. An effective leader alone can pull out the organisation from darkness to light and push it to the path of development by resolving the various genuine difficulties.

(2) It Helps in the Accomplishment of Organisational Goals:

Organisation without an effective leadership is nothing but a muddle of men, machines and materials. Unless they are engaged in a co-ordinated manner to produce more towards the accomplishment of organisational goals, all of these elements of production are useless and inactive.

(3) Efficient Leadership Motivates the Subordinates in the Work:

Leadership influences the performance of the workers. Higher the motivation better would be the performance. By exercising his leadership a leader motivates the employees at work for high performance. He must apply an appropriate leadership style which is most suited to the organisation in a given situation.

(4) Leadership Helps in Directing Group Activities:

The main work of a leader is to get the work done by engaging the group fruitfully. For this purpose, he promotes sincerity of action among the workers. By his personal conduct and behaviour a good leader infuses confidence in his followers by directing them to work, giving them advice and getting good results in the organisation through them.

If a sub-ordinate attains high performance the leader and also the sub­ordinate try to maintain it as he is fully confident of his capacity. A good leadership consolidates the efforts of the organised group. He diverts them towards the goals. But an unorganised group cannot attain the goal, however efficient its members may be. Good leadership directs the effort of a group towards the goal.

(5) To Raise and Building of Morale:

Building of morale is a state of mind and emotions affecting willingness to work. It represents the attitude of the employees towards management. High morale leads to high productivity and organisational stability. Employee’s morale can be raised through better leadership.

(6) Efficient Leader Develops the Talents of the Individuals:

Good leader motivates the workers to work. He promotes self-confidence in them. He provides an opportunity to demonstrate their ability. He seeks co-operation of the workforce and thus creates environment of good industrial relations.

(7) Effective Leadership Mobilises the Workforce to Higher Performance:

Leadership co-ordinates, all possible efforts, makes plans, policies and programmes to develop it to utilise the available man power effectively so as to get highest output with minimum human cost.

(8) A Good Leadership Strives for Fulfilling its Social Responsibility towards Various Social Groups:

Efficient leadership is concerned with the need satisfaction of all the groups, such as more wages to workers to improve their standard of living, higher productivity and production to the organisation, lower price to consumers, higher national product and increased revenue to the nation and a fair return to the investors. All these are possible only through a dynamic leadership.

Importance of Leadership – Helps in Guiding and Inspiring Employees, Helps in Introducing Changes, Secures Co-Operation of Employees and a Few More

Leadership is important for all type of organisations.

The importance of leadership can be explained as follows:

1. Helps in Guiding and Inspiring Employees:

The leaders are in direct contact with employees and they always guide and inspire them to improve their performance. The leaders will motivate the employees for better results. The leaders provide guidance to employees whenever they are in need of it and give them proper direction. The role of leadership is very important for the success of an organisation.

2. Helps in Introducing Changes:

The business environment is changing rapidly. A business is required to cope with the changes. Employees, generally, are fearful of adopting new changes. A leader can influence the attitude of the employees by telling that changes always help an organisation to face new situations and bring new opportunities for them also. A leader can help in finding solutions to new changes and minimise the possibility of adverse results.

3. Secures Co-Operation of Employees:

A leader helps in getting willing co­operation of employees. He advises employee to work with a team spirit in achieving organisational goals. The employees are encouraged to take initiatives for undertaking the work in a better way. Leadership helps in bringing the employees together and extending co-operation for achieving business goals.

4. Improves Productivity:

The productivity improves only when various resources are utilised properly. The human factor plays an important role in raising productivity in the organisation. The willing co-operation of employees is essential for raising productivity. A leader helps in developing co-operation, confidence and motivation among the employees which results in optimum utilisation of resources.

5. Improves Job Satisfaction:

Leadership helps in improving job satisfaction among employees. There are a number of factors such as good working conditions, behaviour of managers towards employees, etc., which help in creating job satisfaction. The managers should motivate the employees and provide them with psychological support. Leadership ensures that managers should adopt that type of attitude which is acceptable to employees and motivates them to consider themselves as a part of organisation. Leadership helps in bringing job satisfaction among employees.

6. Improves Team Spirit:

Good leadership helps in improving team spirit among employees. The employees are encouraged to share common vision of the organisation. The leaders guide the employees to focus on organisational goals instead of individual goals. This type of feeling will encourage team spirit among employees.

7. Creates Confidence:

A leader tries to recognise the hidden talent among employees and encourages them to highlight their capabilities and develop self-confidence. The employees are encouraged to use their talent for improving their performance. The employees will be provided psychological support to help them in developing self-confidence and use their talent well.

Importance of Leadership – Perfect Organisation Structure, Directing Group Activities, Better Utilisation of Manpower, Avoiding Imbalances and a Few More

1. Perfect Organisation Structure:

An organisation structure cannot provide for all kinds of relationships. That is why; informal relationships are made to exist within the framework or formal organisation structure. But the organisation structure is complete or perfect with the help of effective leadership.

2. Directing Group Activities:

The personal conduct and behaviour of a leader can direct others to achieve organisational goals. The main responsibility of a leader is to get the work done effectively by the followers. The followers cannot work hard and effectively without leadership. A leader alone can consolidate the efforts and direct them towards the goal.

3. Technological, Economic and Social Changes:

There is frequent change in technology, economic and social structure in the present computer world. So, the organisation should change its operation and style. This is possible only with the help of effective leadership. If the changes do not take place, the organisation cannot survive.

4. Better Utilisation of Manpower:

A leader treats with equal importance, plans, policies and programmes of an organisation. The plans, policies and programmes do not work themselves. There is a need for a leader. The leader implements the plans, policies and programmes to utilise the available manpower effectively and get highest production with minimum human cost.

5. Avoiding Imbalances:

An organisation grows in size and complexity with the imbalances. Complexity arises due to the introduction of new functions. The reason is that the introduction of new functions resulted in increased levels of management. So, there is a problem of command, co-ordination and control. A leader can tackle these problems and maintain balances.

6. Source of Motivation:

Simply, the existence of leadership does not motivate the workers. The leadership style should be utilised to motivate the workers according to the situations prevailing. The achievement of goals is doubtful in the absence of leadership.

7. Reconciliation of Goals:

An organisation has its own goals. The employees of the organisation have their own goals. They are working mainly for achieving their goals instead of achieving organisational goals. An effective leadership can reconcile the goals of organisations and employees. It is necessary for the success of an organisation.

8. Developing Good Human Relations:

Human relations represent the relations between the leader and the followers (subordinates). An efficient leader can develop the skill of the followers and promote self-confidence apart from motivation. Next, the leader creates opportunity to show their abilities and induces the followers to work towards the accomplishment of goals. In this way, the leader promotes the co-operative attitude of workers and maintains better relations with them.

9. Promoting the Spirit of Co-Ordination:

A dynamic leader can co-ordinate the activities of the subordinate. In an organisation, workers are working in groups, so there is a need for co-ordination among the group members. A leader promotes the spirit of co­ordination among the workers.

10. Fulfilling Social Responsibilities:

Social responsibilities refer to the high standard of living to workers, higher productivity and income to the organisation, more revenue to the government, reasonable price to consumers and fair return on investment to the investors. These could be achieved with the help of effective leadership. Only an efficient leader can get work done to fulfill social responsibilities.

Importance of Leadership

Leadership may be regarded as an important part of the managing process. The success of an enterprise depends to a great extent upon effective leadership.

The importance of leadership can be under­stood from the following points:

1. Guiding and inspiring subordinates – The leader creates an urge among his subordinates for higher per­formance. The leader helps in motivating the employees for the accomplishment of organizational objectives. A good leader influences the behaviour of employees by improving their morale. A leader shows the way and guides his subordinates towards group accomplishment. He creates enthusiasm for higher performance among his followers.

2. Securing cooperation of the employees – Leadership serves as a motive power to group efforts. The leader creates team spirit and coordination among different members of the group. The leader persuades employees to work unitedly and enthusiastically towards the attainment of organizational goals.

3. Creating confidence among employees – A good leader creates confidence among the employ­ees by his conduct and expression. He provides guidance, support, and help to his subordinates in their day-to-day work. In this way, a leader provides psychological support among his employees, so that they can realize their capabilities and potentials. A good leader can infuse a spirit of enthusiasm among his employees.

4. Creating conducive work environment – The leader develops an environment for the employees to con­tribute their maximum efforts towards the realization of organizational goals. The leader maintains a rapport with the employees, which helps in creating an environment of mutual help and trust. Effective leadership can create a productive work environment where employees can work with pleasure.

5. Intermediary between subordinates and management – The leader acts as an intermediary between his subordinates and the higher-level management. He communicates the expectations of the management to his subordinates. He carries the grievances of his subordinates to the top management and tries to convince them.

6. Representing the members – The leader is a representative of members led by him. The leader attempts to protect and promote the interests of members. The real leader is one who is capable of satisfying personal needs, wants, and the interests of the members. He also protects the interests of his subordinates against any outside challenge and threat.

7. Counsellor of members – The leader acts as a counsellor of his subordinates when they face problems. In order to motivate the members, it is necessary to look into their problems, difficulties, and needs. The leader should guide and advise the members concerned to solve their problems promptly.

7. Implementing change in the organization – A good leader persuades subordinates to accept and carry out desired changes in the organization. The leader convinces the subordinates about the positive effects of change to be introduced and thereby reduces their resistance to change.

8. Morale-building of subordinates – The leader helps in motivating the subordinates and boosting their morale. The leader encourages subordinates to take the initiative and provides psychological support to them. The leader develops mutual cooperation and self-discipline among his subordinates. Therefore, a leader builds up dedication and loyalty among the group members.

9. Clarification of goals to the subordinates – A leader serves as the representative of his subordinates. A leader interprets and explains the objectives of the group to his subordinates. As a result, the subordinates know the targets to be achieved and the contributions to be made towards common objectives.

10. Aids to formal authority – Leadership serves as an aid to formal authority. The managers (as leaders) usually exercise authority over the employees of the organization. A manager can secure the willing coopera­tion of employees, which results in higher performance. A good leader constantly tries to develop team spirit among his subordinates.

11. Increase in efficiency of employees – Human resources can be fully utilized with the help of the social skill of leadership. Management is transformed into a social process by means of leadership functions. Effective leadership can increase the efficiency of workers to a great extent. A leader can influence the activities and behaviours of his followers to contribute their best to the organization.

12. Resolving conflicts – An effective leader has the quality to maintain order and discipline in the organiza­tion. He plays a crucial role in resolving the conflicts arise in the group. He does it by harmonizing diverse interests of group members and the organization.

Importance of Leadership

i. To achieve the organizational goals.

ii. To have employees accept the changes caused by economic, social and technical environment.

iii. To implement the plans, policies and programmes of the organization.

iv. To utilize the manpower to an optimum extent.

v. To motivate the manpower to attain the goals of the organization.

vi. To reconcile individual goals with the organizational goals.

vii. To coordinate the efforts of different functional groups.

viii. To maintain cordial relationship between the leader and the subordinates.

ix. To guide and direct the subordinates.

x. To boost the confidence of the subordinates.

xi. To inspire the subordinates to realize their latent potential.

xii. To maintain discipline among the workforce in the organization.

xiii. To initiate efforts to upgrade the skill, competence and talents by training, mentoring and coaching the subordinates.

xiv. To secure the rights of workers and prevent them from being exploited.

xv. To build high morale among the subordinates.

xvi. To represent the group of followers/subordinates.

Importance of Leadership – 5 Benefits to the Organisation

Leadership is the key factor in making any organisation successful. History reveals that, many times difference between success and failure of an organisation is leadership.

The importance of leadership can be discussed from the following benefits to the organisation:

1. Leadership influences the behavior of people and makes them to positively contribute their energies for the benefit of the organisation. Good leaders always produce goods results through their followers.

2. A leader maintains personal relations and helps followers in fulfilling their needs. He provides needed confidence, support and encouragement and thereby creates congenial environment.

3. Leader plays a key role in introducing required changes in the organisation. He persuades, clarifies and inspires people to accept changes whole-heartedly. Thus, he overcomes the problem of resistance to change and introduces it with minimum discontentment.

4. A leader handles conflicts effectively and does not allow adverse effect resulting from the conflicts. A good leader always allows his followers to ventilate their feeling and disagreement but persuades them by giving suitable clarifications.

5. Leader provides training to their subordinates. A good leader always build up his successor and helps in smooth succession process.

Importance of Leadership – 5 Points Highlighting the Importance of Leadership

An organisation comes into existence with certain specified objectives and hence there is need to direct the activities of its members towards the achievement of the objectives. Direction of activities in the organisation is effected by the leader. This emphasises the importance of leadership in achieving the organisational goals.

According to Peter F. Drucker, good leadership is a must for the success of a business. But business leaders are the scarcest resources of any enterprise. John G. Gloves, in his book, Fundamentals of Professional Management, states that “more failures of business concerns are attributable to poor leadership than to any other cause.” This observation also indicates the importance of good leadership for the success of a business.

Apart from this, the following points highlight the importance of leadership:

1. Performance of workers very much depends on their motivation. Higher the motivation, the better would be the performance. A good leader influences the behaviour of his subordinates in such a way that they are motivated to high performance.

2. A good leader creates confidence in his subordinates by giving them sound advice and by directing them for good performance. A good leader also sustains the enthusiasm of his subordinates and secures their involvement in the organisation goals.

3. Good leadership increases employee morale which in turn ensures high productivity and stability in the organisation.

4. A manager, in spite of his authority, may or may not have the ability to influence the behaviour of others. Further, the use of authority may not always ensure high performance. Whereas a good leadership by the use of influence can secure high performance. Hence, leadership helps in the use of formal authority effectively.

5. Leadership directs and unifies efforts of the individuals of a group towards the attainment of enterprise goals. In other words, in the absence of good leadership, the organisational goals of the enterprise would remain unfulfilled.

Importance of Leadership – Full Capacity Utilisation, Motivation to Employees, Good Relations, Establishes Cooperation, Facilitates Change and a Few More

An organisation is a group of two or more persons formed to attain set objectives. These objectives are attained when people work and to direct the efforts of people towards attainment of objectives is the task of leaders. Therefore, good or bad, however the employees do, will depend on leader. If objectives are achieved, it will be due to the effective leadership and if objectives are not achieved, it will be due to inefficient leadership.

Therefore, the success or failure of an organisation will depend on leadership.

According to him people work only 60% of their capability by will. Rest 40% of the capability can be utilised only with effective leadership, so that full capacity of people may be utilised.

The importance of leadership will be apparent from following points:

1. Full Capacity Utilisation:

First and foremost, leadership ensures full capacity utilisation of people which is required for all tasks to be performed efficiently.

2. Motivation to Employees:

Leader influences the followers and makes them work as he wishes. They are motivated for achievement of organisational goals also through leadership.

3. Good Relations:

The problem of tension or dispute between managers and workers is faced by many organisations. A leader so influences his followers that they work happily. Through leadership, good relations establish between managers and employees, which is pre-requisite for a peaceful environment in organisation.

4. Establishes Cooperation:

When the relation between managers and employees will be good, they will cooperate with each other for achievement of organisational objectives.

5. Coordination among Employees:

Leadership not only aids in setting cooperation between managers and employees but the employees are so influenced that they coordinate with each other also.

6. Facilitates Change:

Through leadership, behaviour is influenced and directed. Though leadership people are convinced to change happily realising the benefits associated with the change.

7. Creates Confidence:

A good leader gives all the opportunities to his followers by which they can realise and utilise their potential. He guides and advises the employees in such a manner that they see their inner qualities, capability and capacity. A good leader fills the employees with the sense of enthusiasm and self-confidence; he acts as a father figure for employees whom they can rely on and who is a source of immense energy for them.

8. Builds Morale:

Leadership makes employees confident, motivates them for achievement of organisation’s goals and helps them to accept changes. All these things build and increase employees’ morale.

9. Develops Teamwork:

Leadership creates cooperation and coordination between the employees. Leader holds the group; he has the disciplinary power which keeps the followers working towards the achievement of the organisational goals. Leadership is a force that binds a group, without which there will be blankness. Leader enlightens the spark of team spirit in followers. He harmonises the organisational goals with individual goals and ensures the development of individuals.

10. Represents the Whole Group:

A leader is the representative of his group in the organisation as well as outside the organisation. He acts as speaker, liaison, arbitrator and negotiator of the group. He raises the voice of his followers.

11. Increase in Efficiency:

Through leadership, employees are induced to follow the leader. Their behaviour is so directed that they work for the organisational goals with full commitment. It increases their efficiency also.

12. Success of Organisation:

Leader inspires the followers i.e., employees for achievement of organisational goals and then employees work honestly and whole heartedly for organisational objectives. Therefore, success of an organisation depends on leadership.

13. Facility to Executives:

Through leadership, cooperation and coordination is established and human resources can be utilised to the maximum capacity; executives need not give their full time to supervise the employees. They can utilise the time thus saved for other important managerial functions.

14. Fulfillment of Social Responsibility:

If employees are led by a good leader, they become efficient and they develop. Followers are groomed through leadership. Their standard of living and personality improves. On the other hand, because of efficient leadership and efficient employees, customers get good quality products at fair prices.

15. Discipline Maintenance:

Leaders so inspire their followers that they follow rules and regulations willingly and happily. Leader himself must maintain the discipline so that the followers also do the same following him.

Leadership is necessary for the success of organisation. In its absence, no organisation can work efficiently. Peter F. Drucker has rightly said “A business leader is the basic and not easily available source of a business enterprise. The chief factor in the failure of many business enterprises has been inefficient leadership.”

Importance of Leadership

The following points highlight the importance of leadership:

1. Effective direction – An organisation comes into existence with certain objectives. To attain the objectives, the activities of the organisation must be directed. Direction of the activities is effected through leadership. In short, effective leadership directs the activities of an organisation towards the attainment of the specified organisational goals.

2. Source of motivation – Leadership is the motivating power to group efforts. Effective leadership motivates the subordinates for higher productivity.

3. Confidence – Leadership creates confidence in the subordinates by giving proper guidance and advice.

4. High morale – Good leadership increases the morale of the employees which, in turn, contributes to higher productivity.

5. Development of team-spirit – Effective leadership promotes team-spirit and team work which is quite essential for the success of any organisation.

6. Encouraging initiative – A progressive, forward and democratic-minded leader always encourages initiative on the part of the followers.

7. Overcoming resistance to change – A leader overcomes resistance, if any, on the part of followers to organisational changes; through explaining to them the utility of such changes to both—the enterprise and the employees.

Importance of Leadership  – 6 Points Highlighting the Importance of Leadership

Good leadership is essential to business, to Government and to the numerous groups and organisations that shape the way we live, work and play. Leadership is an important factor for making an organisation successful. Leadership transforms the potential into reality.

Following points highlight the importance of leadership:

1. Improves motivation and morale – A good leader influences the behaviour of an individual in such a way that he feels like getting involved in the task of enterprise. Leadership creates confidence in subordinates and sustains their enthusiasm and involvement in achievement of organisational goals.

2. Leads to higher performance – Leadership lend a motivating power to group efforts. Leadership pulls up the groups to a higher level of performance through its work of human relations.

3. Developing good human relations – Partly through his magnetic personality and partly through ensuring a free-flow of communication, a leader helps in the development of good relations within his work group. Good human relations benefit the organisation in ways more than one and become the permanent asset of the organisation over a period of time.

4. Discipline through self-discipline – A leader enforces discipline on followers, through helping them cultivate, what is known as ‘self-discipline.’ Self-discipline is an outcome of many factors like justice and impartiality, motivation, morale, self-confidence etc. In fact, there is nothing better than having disciplined employees.

5. Encouraging initiative – A progressive, forward and democratic minded leader, always encourages initiative, on the part of the followers. Through encouraging initiative, the leader can help the organisation to avail the hidden qualities of people.

6. Leadership provides the basis for cooperation in several ways.

Thus, good leadership is essential in all aspects of managerial functions whether it be motivation, communication or direction. Good leadership ensures success in the organisation.