DEFINITION: Leadership is a process of social influence, which maximizes

!the efforts of others, towards the achievement of a oal Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. This definition is similar to Northouse's ( !!"# p$% definition & Leadership is a process whereby an individual influences a group of individuals to achieve a .common goal

Four Factors of Leadership

Leader
'ou must have an honest understanding of who you are# what you know# and what you can do. (lso# note that it is the followers# not the leader or someone else who determines if the leader is successful. )f they do not trust or lack confidence in their leader# then they will be uninspired. To be successful you have to convince your followers# not yourself or your superiors# that you are worthy of being followed.

Followers
*ifferent people re+uire different styles of leadership. ,or e-ample# a new hire re+uires more supervision than an e-perienced employee does. ( person who lacks motivation re+uires a different approach than one with a high degree of motivation. 'ou must know your people. The fundamental starting point is having a good understanding of human nature# such as needs# emotions# and motivation. 'ou must come to know your employees' be, know, and do attributes.

"ommunication
'ou lead through two/way communication. 0uch of it is nonverbal. ,or instance# when you 1set the e-ample#2 that communicates to your people that you would not ask them to perform anything that you would not be willing to do. 3hat and how you communicate either builds or harms the relationship between you and your employees.

#ituation
(ll situations are different. 3hat you do in one situation will not always work in another. 'ou must use your judgment to decide the best course of action and the leadership style needed for each situation. ,or e-ample# you may need to confront an employee for inappropriate behavior# but if the confrontation is too late or too early# too harsh or too weak# then the results may prove ineffective. (lso note that the situation normally has a greater effect on a leader's action than his or her traits. This is because while traits may have an impressive stability over a period of time# they have little consistency across situations (0ischel# 4567%. This is why a number of leadership scholars think the Process Theory of Leadership is a more accurate than the Trait Theory of Leadership.

8arious forces will affect these four factors. 9-amples of forces are:

your relationship with your seniors the skill of your followers the informal leaders within your organization how your organization is organized

Importance of Leadership:
Leadership is an important function of management which helps to ma-imize efficiency and to achieve organizational goals. The following points justify the importance of leadership in a concern. 4. Initiates action$ Leader is a person who starts the work by communicating the policies and plans to the subordinates from where the work actually starts. . %otivation$ ( leader proves to be playing an incentive role in the concern;s working. <e motivates the employees with economic and non/economic rewards and thereby gets the work from the subordinates. $. &rovidin uidance$ ( leader has to not only supervise but also play a guiding role for the subordinates. =uidance here means instructing the subordinates the way they have to perform their work effectively and efficiently. >. "reatin confidence$ ?onfidence is an important factor which can be achieved through e-pressing the work efforts to the subordinates# e-plaining them clearly their role and giving them guidelines to achieve the goals effectively. )t is also important to hear the employees with regards to their complaints and problems. @. 'uildin morale$ 0orale denotes willing co/operation of the employees towards their work and getting them into confidence and winning their trust. ( leader can be a morale booster by achieving full co/operation so that they perform with best of their abilities as they work to achieve goals. 6. 'uilds wor( environment$ 0anagement is getting things done from people. (n efficient work environment helps in sound and stable growth. Therefore# human relations should be kept into mind by a leader. <e should have personal contacts with employees and should listen to their problems and solve them. <e should treat employees on humanitarian terms. ". "o$ordination$ ?o/ordination can be achieved through reconciling personal interests with organizational goals. This synchronization can be achieved through proper and effective co/ordination which should be primary motive of a leader.

Define Objectives
Aefore a business owner can lead others# he must first learn who he is and what he wants his business to accomplish. ( leader should make a list of specific# realistic goals he wants his business to achieve# then prioritize them. 9very business leader wants his company to be profitable# but he usually wants it to be something else as well. ( leader should clearly articulate to himself what his secondary goals are# and when they take priority over the primary goal of profit. =rowth is one common

secondary goal // you may decide to run a bargain/basement sale to ac+uire new customers# or sacrifice short/term profit by spending on e-pansion. <owever# an owner may also have non/monetary goals for his business# which also need to be clearly defined. ,or e-ample# helping the poor may be an important part of an owner's religious beliefs. Therefore# corporate donations to a homeless shelter may take precedence over making the highest possible profits. (n owner may retrofit his office with BgreenB materials to be environmentally responsible# even though it costs more in the short term. )f you have more than one goal as a business leader# it's important to make it clear to your employees. (fter all# it's hard for them to follow you if they can't see where you're going.

Communicate Objectives
)t's important for a business leader to give employees a sense of her overall business goals. Aut a successful business leader makes it her daily habit to communicate specific project goals to her team. Che e-plicitly states the desired result and how she proposes to achieve it# as well as the specific tasks each team member will be e-pected to perform# and the date by which each task must be completed. Che e-plains her plan in understandable terms and sets a measurable# realistic goal that includes a deadline for completion. 9ffective leaders leave nothing to the imaginationD they make sure that their employees understand e-actly what they want# how they want it and when they want it.

Measure Objectives
3hen a business objective has been set and a project undertaken# an effective leader makes sure the team's progress is tracked at fre+uent intervals. This helps the team stay focused on results and prevents it from becoming distracted by side issues that don't contribute to the goal's completion. 3eekly progress meetings or a progress chart posted in a prominent location help team members focus on the goal. Areaking the goal down into specific areas also helps a leader see if one area is lagging behind others. ,or e-ample# if your objective is to increase sales by 4! percent# breaking the project down by sales territory helps you see which territories are meeting your goal and which may need more attention.

Implement Objectives
(n effective business owner leads by e-ample. <e stays at the forefront of a project's implementation and guides it through to completion. (s the leader# you are your project's primary cheerleader# coach and troubleshooter. )f problems arise# you're the one to address and resolve them. 'ou shepherd the project through to completion. 'our level of enthusiasm for the project will set the tone for your team# and your constant oversight will send the message that you're committed to its success.