11 Importance of Leadership in Management [Explained]

Importance of Leadership

Leadership is about influencing employees toward the achievement of organizational goals. It is an important function of management that aims to increase efficiency and ensure goal achievement. The following are the main importance of leadership. They are;

Inspire and Motivate

Leadership is by nature influencing, inspiring, and motivating function of management employees to do more than they regularly do. A leader inspires his followers to follow his concerns, instructions, and guidance.

Leaders use various monetary and non-monetary tools to motivate their followers. Especially, good leaders always choose to use positive reinforcement to motivate their subordinates. And, it is common that when people are motivated they usually do more.

Challenge the Status Quo

Leaders aim to challenge the regular work procedures and styles of the organization. They are considered changemakers. They just do not think within the boundaries of the organization, they highly consider the matter of the external market. They analyze the market make decisions and deliver it to employees in a simple way.

Promotes Creativity

In addition to promoting change, leadership also promotes creativity in the organization. Employees are given the freedom to think and apply work techniques as they see fit. They are highly encouraged to search for and apply new techniques to do the existing tasks.

Related: Diversity in the Workplace

Often, leaders make employees comfortable to apply new, creative, and unique ideas in the organization’s working procedures. This leads to creativity and innovation in the workplace.

Employee Development

Employees are given a chance to develop their skills and competencies. Leaders help employees to identify themselves and realize their worth through persuasive communication, encouragement, and motivation.

They also play the role of upper positions than their actual position. This lets followers learn new skills and the freedom to make decisions also makes them competent to make rational choices.

Provides Guidance

Leadership provides guidance to employees or followers about what to do and how to do it. They teach people how to do something. Leaders are good guides and instructors. When followers need extra guidance, meaning, leaders do it. They do this by setting an example.


Leaders are good team players. They promote a teamwork culture in the environment. They are also good communicators. They communicate the importance of teamwork in a persuasive way that makes employees take active participation in teamwork.

Conflicts Resolution

As you know, conflicts are common in the workplace. Leadership is also important to resolve conflicts in the workplace as they arise. Leaders are active listeners and good valuers. They listen to the concerns of employees and address quickly where conflicts arise.

Addressing quickly and resolving quickly reduces the conflicts in the workplace, and at the same time, helping employees feel like they’re heard can head off other probable problems.

Related: Strategies To Resolve Conflicts

Creates Vision

Good leaders have vision and purpose and they articulate the same to the employees and the whole organization. Good leadership creates a clear vision for the organization.

Leaders can intervene and demonstrate the organization’s vision by using their abilities. Leaders offer a road map outlining the processes and materials required for their organization to reach the desired destination.

Positive Work Environment

The importance of leadership is that it creates a positive working environment. As it is mentioned, leaders are good communicators, good team players, and inspire people. They circulate the message about the importance of each other in achieving the whole organizational goals.

Good leaders ensure proper coordination in the organization. As such, everyone positively contributes their effort toward organizational prosperity.

Builds Leadership in People

Good leadership also builds leadership in people. Good leaders help understand their follower’s values, worth, and potential. Followers are also given the independence to exercise their full potential. Leaders positively encourage them to upskill their leadership qualities which lets followers be leaders while performing their duties.

Ensures Goal Achievement

Last but not least, leadership also ensures the goal achievement of the organization. A clear vision, creativity, good teamwork, proper guidance, a positive work environment, motivated employees, etc. all are supporting factors to achieve the organizational goals.

Read Next: The 12 Styles of Leadership

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