Introduction

Leadership refers to the process of making a group of people operate in a team, in order to reach specific goals. In business, effective leadership is one of the most important factors that guarantee successful work of the organization, its development, and stability. It is a skill that helps managers to organize all of the processes within a company and maintain constant control over the employees. Leadership is so much more than traits, power, processes and which approach is used. Leaders also must have values and foster a culture where others want to follow. Organizational leadership not only must accomplish goals, but they must sustain what has been accomplished. Leadership is also about building relationships with the various stakeholders of an organization. An organization, whether it is a for-profit or nonprofit, needs to maintain a reputation of ethical decision making and quality customer service. Organizations are citizens and must conduct themselves accordingly; leadership sets the standard for how institutions are perceived in the global marketplace. The values of leadership and an organization are demonstrated in the manner in which business is conducted.

In organizational leadership, the most fundamental factor is organizational design, which helps managers to evaluate which of the business strategies can be applied and which are not effective. Every organization needs a leader, who is qualified enough to set directions, in order to maximize working potential of the employees. There are many theories that are often associated with the organizational culture, psychology, personalities, and management as well. Though the role of a leader is not so evident in small companies, big corporation running is impossible in most cases, if there is no person, who is able to take responsibility of making specific strategic decisions. A good leader in any organization may not only help the employees to use their potential, but also organize people to maximize their efforts. To understand the theory of organizational leadership, it is vital to learn all of its fundamental aspects. In this regard, person should deal with all of the theories and their main points, so as to determine what suits best for the company and guarantees future profit.

Any organization, whether for-profit or nonprofit, needs to maintain a reputation of ethical decision-making and high-quality customer service. All companies operating of the market were established to satisfy specific human needs. In other words, they are working for people, who are buying their products. Therefore, they must be conducted accordingly; leadership sets the standard of how institutions are perceived in the global marketplace. The values of leadership and an organization are demonstrated in the manner, in which business is conducted.

Business Roles

Leadership roles can also vary, depending of the goals people are willing to achieve. For instance, visionary leader, principle-centered leader, group man leader, situational leader, democratic leader and servant leader’s roles can be used in different situations. According to the center of visionary leadership, this role is usually practiced by managers, in order to bring employees together. (McLaughlin, 2001) Visionary leader often creates a challenging task, which can be solved only when working in a team. Principle-centered leader is a natural leader. This is a person, who takes certain responsibilities in the company and who becomes a decision-maker due to his diligence and talents. In situational leadership, there is no single person in the company, who has more authority that the others. In a team of professionals working together, each person can make decisions, depending on his/her knowledge and experience.