Effective leadership is important because it creates confidence among the participants in an organization and encourages a professional and positive environment. In an enterprise setting, leadership acts as the catalyst that makes all other business aspects work in tandem. In the absence of proper leadership, business resources lie dormant.
Leadership can be described as the process or art of influencing people's behaviors, thoughts and attitude. Effective leadership makes people feel like they have a say in how things are done. Leadership entails inspiring people to effectively, efficiently and willingly complete any tasks assigned to them, often inadvertently leading to higher levels of productivity and job satisfaction.
Proper leadership sets a clear vision and effectively communicates it to employees, providing them with a clear understanding of the organizational direction. Good leadership also fosters effective planning which is important when it comes to meeting organizational goals. Quality business leadership is also important during times of crisis and when dealing with relationships between coworkers. Effective leadership improves employee relations and more closely aligns the team and individual objectives. In the absence of strong leadership, an organization may record slow growth, or stall completely, and eventually lose its competitiveness and direction.