Why Leadership Is Important

The importance of leadership in business management lies in the fact that it helps to maximize efficiency and achieve the goals of an organization. A good leader will:

• Initiate Action – a leader will direct employees to perform their functions by effectively communicating an organization’s policies and plans.

• Provides Motivation – a good leader will know how to motivate his employees to get the best from them through both economic and non-economic rewards.

• Offers Guidance – advises employees on how to perform their work most efficiently and effectively.

• Creates Confidence – a leader must inspire his subordinates to work as a team and give them the confidence to achieve their goals.

• Builds a Positive Environment – a leader must ensure that all of the employees he directs are treated with dignity and respect and that any problems are resolved fairly in a positive and non-punitive manner.