Contents

• Introduction 2
• Literature Review 2
• Transactional Leadership 4
• Transformational leadership 5
• Effective Leadership Model 7
• Benefits of Effective Leadership 10
• Leadership at Organization 13
• Socio-structural system 13
• Cultural 15
• Leadership Development 17
• Conclusion 18
• References 20

Description

Leadership is one of those phenomena whose definition has constantly expanded and changed. There is considerable interest in the topic today, both within the industry as well as outside the industry in fields such as education, government, military, etc (Gill, 2006). This is due to the fact that leadership has an immense amount of potential to influence a number of stakeholders within a given situation through the creation of systems such as quality management, change management and enhanced risk management. In the industrial setup, advances in leadership have time and again pointed to the phenomenon to create a mutually rewarding situation for both employees and organizations. Early on, the factors that offered competitive advantage to organizations were either based on technology or advances in management. More recently however, factors related to the human resources of are gaining more importance such as leadership, management of employees, the relationship between the two, etc and form a significant competitive advantage (Sims, 2002). All these factors have received special attention in the past 40 years or so. Leadership is especially important since it has the ability to influence a number of other organizational factors such as employee motivation, overall productivity, etc and also due to the fact that it is a summation of more than one organizational aspect such as management of people, risk, change, etc. In addition, leadership is cost effective. Although this is not the reason that companies are investing into developing more efficient leadership structures, it offers an important cost advantage over the other factors of management, HR development and employee skills development (Berger & Berger, 2010).