Leadership in Management – Definition, Features, Styles, Qualities, Importance, and Examples

What is Leadership in Management?

Leadership in business is the art of influencing individuals to willingly contribute towards achieving shared organizational goals. It involves adeptly navigating interpersonal relationships, motivating teams, and providing guidance.

A successful business leader excels in continuous communication, understanding diverse perspectives, and maintaining a positive work environment. Leadership is not a one-size-fits-all concept; it adapts to situations, acknowledging that effective leaders may employ various styles.

In the dynamic business realm, a leader initiates action, provides motivation, and instills confidence in the team. Guiding employees toward common objectives, a leader fosters teamwork, resolves conflicts, and creates an environment conducive to growth.

In a multifaceted role, leadership demands qualities such as a pleasing personality, knowledge, integrity, initiative, communication, motivation, self-confidence, intelligence, decisiveness, social skills, and adaptability.

  • George R. Terry – “Leadership is the activity of influencing people to strive for mutual objectives”
  • Stephen P. Robbins – “Leadership is the ability to influence a group’s achievement of goals.”
  • Koontz and Weihrich – “Leadership is the art of or process of influencing people that they will strive willingly and enthusiastically toward the achievement of goals.”
  • Keith Davis – “Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals.”

Thus, it can be concluded from the above definition that leadership is the ability to influence the behavior and performance of an individual or group of individuals toward the achievement of common objectives. Ultimately, the success of an organization hinges on the symbiotic relationship between leaders and followers, collectively propelling the entity toward prosperity.

What are the Goals of Leadership in Management?

The major goals of leadership in the organization include the following:

  • Initiating Action: It involves kickstarting activities before the actual work begins. Leaders communicate policies and plans, laying the foundation for the team’s efforts.
  • Providing Motivation: Effective leaders inspire employees by offering financial and non-financial incentives. Motivation is recognized as the driving force behind an individual’s commitment to achieving goals.
  • Providing Guidance: Leaders not only supervise but also guide their subordinates in performing tasks effectively. They offer instructions to ensure that efforts align with organizational objectives.
  • Creating Confidence: Leaders acknowledge and clarify the roles of employees, addressing their concerns and resolving issues. This builds confidence among team members regarding the organization.
  • Building Work Environment: Successful leaders maintain personal connections with employees, addressing their problems and maintaining a positive work atmosphere. They listen, persuade, and handle conflicts carefully.
  • Coordinating: Leaders reconcile personal interests with organizational goals, fostering coordination within the entity. This ensures a harmonious balance between individual contributions and overarching objectives.

Features of Leadership

The following are the 5 key features of managerial leadership:

Influence on Behavior

Leadership is the ability to influence the behavior of individuals within an organization, guiding them toward shared goals. Leaders inspire cooperation and willing collaboration among team members.

Interpersonal Process

It involves an interpersonal dynamic between the leader and followers. The effectiveness of leadership is determined by the quality of relationships, impacting how efficiently organizational targets are met.

Attainment of Common Organizational Goals

The primary purpose of leadership is to guide individuals in working collectively toward common organizational objectives. Leaders unite people and their efforts to achieve shared goals.

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Continuous Process

It is not a one-time event but a continuous process. Leaders must consistently guide and monitor employees to ensure their efforts align with organizational objectives without deviation.

Group Process

It is inherently a group process involving interaction among two or more individuals. A leader cannot lead without followers, emphasizing the collective nature of achieving organizational goals.

Styles of Leadership

Leadership style refers to the unique approach and behavioral pattern employed by a leader to direct, motivate, and implement plans within an organization. It encompasses both explicit and implicit actions undertaken to maintain effectiveness, shaping the leader’s interaction with their team and influencing the overall structure of the organization.

Let’s shortly explore some key styles of leaders:

  1. Autocratic Leadership: Characterized by centralized decision-making, where the leader makes decisions without significant input from team members.
  2. Democratic Leadership: Encourages team participation in decision-making, with the leader taking input from followers while retaining the final say.
  3. Laissez-Faire Leadership: Hands-off leadership style where the leader grants autonomy and responsibility to subordinates, allowing them to make decisions.
  4. Transformational Leadership: Focuses on inspiring and motivating followers to think innovatively, bringing positive changes to the organization.
  5. Transactional Leadership: Based on reward and punishment, emphasizing clear roles and defined tasks, aiming to increase efficiency through supervision.
  6. Coaching Leadership: The leader acts as a coach, identifying and nurturing individual strengths, encouraging skill development, and fostering a positive attitude.
  7. Servant Leadership: Puts the needs of the team first, emphasizing teamwork and employee satisfaction as a means to increase productivity.

Read More: Organizational Change

Qualities of Leadership

Let’s explore some qualities of good leaders:


A great leader possesses a clear vision for the future of the organization. This foresight guides decision-making, inspires others, and sets a strategic direction for the team.


Integrity involves honesty, ethical behavior, and consistency in actions. Leaders with integrity earn trust, foster a positive organizational culture, and set high ethical standards.


Effective leaders make timely and informed decisions. Decisiveness is crucial in navigating challenges, ensuring progress, and maintaining momentum within the team.


Leaders must adapt to changing circumstances, technologies, and market trends. An adaptable leader navigates uncertainty, embraces innovation, and guides the team through transitions.


Empathy involves understanding and sharing the feelings of others. Leaders who demonstrate empathy build strong relationships, foster a supportive work environment, and connect with team members on a personal level.

Communication Skills

Clear and effective communication is essential. A leader’s ability to convey ideas, provide feedback, and ensure understanding promotes collaboration, reduces misunderstandings and aligns the team with organizational goals.

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Resilient leaders bounce back from setbacks, learn from failures, and maintain composure under pressure. This quality inspires confidence, encourages perseverance, and instills a positive attitude within the team.


Leaders take responsibility for their actions and decisions. Holding oneself and others accountable fosters a culture of accountability, promotes trust, and ensures that commitments are met.

Importance of Leadership

Effective leadership is necessary in the organization. Here are its key benefits:

Organizational Direction

Leadership provides a clear vision and direction for the organization. A strong leader defines goals, sets strategies, and guides the team toward achieving a shared vision, ensuring alignment and focus.

Employee Motivation

Effective leadership inspires and motivates employees. Through encouragement, recognition, and support, leaders boost morale, foster a positive work environment, and encourage individuals to give their best effort.

Decision-Making and Problem-Solving

Leaders play a key role in decision-making and problem-solving. Their ability to analyze situations, make informed decisions, and navigate challenges is crucial for organizational success and adaptation to changing circumstances.

Team Building and Collaboration

It is essential for building cohesive teams. Leaders foster collaboration, create a sense of unity, and promote effective communication among team members, leading to improved productivity and innovation.

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Organizational Culture and Values

Leaders shape the organizational culture by exemplifying values and behavior. Through their actions, leaders establish a positive work culture, reinforce core values, and create a shared identity that guides the actions of employees.

Change Management

In times of change, strong leadership is crucial. Leaders guide teams through transitions, manage resistance to change, and inspire a sense of confidence and adaptability, ensuring the organization can thrive in dynamic environments.

Examples of Leadership

These examples showcase how good leadership involves effective communication, strategic decision-making, empowerment of team members, and the embodiment of desirable qualities, which ultimately contribute to the overall success and well-being of the organization.

Read More: Lewin’s Change Model – 3 Stages

Inspirational Communication

A good leader effectively communicates the organization’s vision and goals, inspiring and motivating team members. Through clear and compelling messages, they instill a sense of purpose, enthusiasm, and commitment among employees, fostering a shared understanding of the company’s mission.

Strategic Decision-Making

Strong leaders excel in strategic decision-making, weighing various factors, risks, and opportunities. They make informed choices that align with the organization’s objectives, ensuring the long-term success and sustainability of the business.

Empowering and Developing Team Members

Good leaders empower their team members by providing autonomy, encouraging innovation, and fostering a culture of continuous learning. They invest in the development of their employees, recognizing individual strengths, and creating opportunities for growth and advancement.

Leading by Example

Leading by example is a hallmark of effective leadership. Leaders who embody the values, work ethic, and professionalism expected from their team set a positive standard. By demonstrating integrity, accountability, and dedication, they inspire others to follow suit, contributing to a healthy organizational culture.

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