Significance of Leadership
(i) Effective direction
An organization comes into existence with certain objectives.
To attain the objectives, the activities of the organization must be directed.
Direction of the activities is effected through leadership.
In short, effective leadership directs the activities of an organization towards the attainment of the specified organizational goals.
(ii) Source of motivation
Leadership is the motivating power to group efforts.
Effective leadership motivates the subordinates for higher productivity.
(iii) Confidence
Leadership creates confidence in-the subordinates by giving proper guidance and advice.
(iv) High Morale
Good leadership increases the morale of the employees which, in turn, contributes to higher productivity.
(v) Development of Team Spirit
Effective leadership promotes team-spirit and teamwork which is quite essential for the success of any organisation.
(vi) Encouraging initiative
A progressive, forward and democratic minded leader, always encourages initiative on the part of the followers.
(vii) Overcoming resistance to change
A leader overcomes resistance, if any on the part of followers to organizational changes; through explaining to them the utility of such changes to both—the enterprise and the employees.
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