Leadership is an important function of management which helps to maximize efficiency and to achieve organizational goals. It is important to understand the leader-follower relationship. Many times, the success of an organization is attributed to the leader, but due credit is not given to the followers. It is said that followers make a person, a good leader by acceptance of leadership.
The importance of leadership can be discussed from the following benefits to the organization:
(i) Leadership influences the behavior of people and makes them to positively contribute their energies for the benefit of the organization. Good leaders always produce goods results through their followers.
(ii) A leader maintains personal relations and helps followers in fulfilling their needs. He provides needed confidence, support and encouragement and thereby creates congenial work environment.
(iii) The leader plays a key role in introducing required changes in the organization. He persuades, clarifies and inspires people to accept changes whole-heartedly.
(iv) A leader handles conflicts effectively and does not allow adverse effects resulting from the conflicts. A good leader always allows his followers to ventilate their feelings and disagreement but persuades them by giving suitable clarifications.
(v) The leader provides training to their subordinates. A good leader always builds up his successor and helps in the smooth succession process.
(vi) Effective leadership is important because it creates confidence among the participants in an organization and encourages a professional and positive environment.