Meaning:

Leadership is an important element of the directing function of management. Wherever, there

is an organized group of people working towards a common goal, some type of leadership
becomes essential. “The power of leadership is the power of integrating. The leader
stimulates what is best in us he unites and concentrates what we feel only gropingly and
shatteringly. He is a person who gives form to the uncoarctate energy in every man. The
person who influences me most is not he who does great Deeds, but he who makes me feel
that I can do great deeds.” Marry Parker Follet.

Leadership is the ability to build up confidence and zeal among people and to create an urge
in them to be led. To be a successful leader, a manager must possess the qualities of foresight,
drive, initiative, self-confidence and personal integrity. Different situations may demand
different types of leadership.

Definitions:

Leadership has been defined in various ways. Stogdill has rightly remarked that there are
almost as many definitions of leadership as there are people who have tried to define it.

Leadership Functions:

Following are the important functions of a leader:

1. Setting Goals:

A leader is expected to perform creative function of laying out goals and policies to persuade
the subordinates to work with zeal and confidence.

2. Organizing:

The second function of a leader is to create and shape the organization on scientific lines by
assigning roles appropriate to individual abilities with the view to make its various
components to operate sensitively towards the achievement of enterprise goals.

3. Initiating Action:

The next function of a leader is to take the initiative in all matters of interest to the group. He
should not depend upon others for decision and judgment. He should float new ideas and his
decisions should reflect original thinking.

4. Co-Ordination:

A leader has to reconcile the interests of the individual members of the group with that of the
organization. He has to ensure voluntary co-operation from the group in realizing the
common objectives.

5. Direction and Motivation:

It is the primary function of a leader to guide and direct his group and motivate people to do
their best in the achievement of desired goals, he should build up confidence and zeal in the
work group.

6. Link between Management and Workers:

A leader works as a necessary link between the management and the workers. He interprets
the policies and programmes of the management to his subordinates and represents the
subordinates’ interests before the management. He can prove effective only when he can act
as the true guardian of the interests of his subordinates.

Qualities of a Good Leader:

A successful leader secures desired behaviour from his followers. It depends upon the quality
of leadership he is able to provide. A leader to be effective must possess certain basic
qualities. A number of authors have mentioned different qualities which a person should
possess to be a good leader.

Some of the qualities of a good leader are as follows:

1. Good personality.
2. Emotional stability.
3. Sound education and professional competence.
4. Initiatives and creative thinking.
5. Sense of purpose and responsibility.
6. Ability to guide and teach.
7. Good understanding and sound judgment.
8. Communicating skill.
9. Sociable.
10. Objective and flexible approach.
11. Honesty and integrity of character.
12. Self confidence, diligence and industry.
13. Courage to accept responsibility .

What is 'Foreign Direct Investment - FDI'

Foreign direct investment (FDI) is an investment made by a firm or individual in one country
into business interests located in another country. Generally, FDI takes place when an
investor establishes foreign business operations or acquires foreign business assets, including
establishing ownership or controlling interest in a foreign company. Foreign direct
investments are distinguished from portfolio investments in which an investor merely
purchases equities of foreign-based companies.

Facilities and Incentives for a foreign investor

1. Tax exemption on royalties, technical knowhow and technical assistance fees and facilities
for their repatriation.
2. Tax exemption on interests on foreign loans.
3. Tax exemptions on capital gains from transfer of shares by the investing company.
4. Remittances of up to 50% of salaries of the foreigners employed in Bangladesh and
facilities for repatriation of their savings and retirement benefits at the time of their return.
5. No restrictions on issuance of work permits to project related foreign nationals and
employees.
6. Facilities for repatriation of invested capital, profits and dividends.
7. Provision of transfer of shares held by foreign shareholders to local investors.
8. Reinvestment of remittable dividends would be treated as new investment.
9. Level playing field: foreign owned companies duly registered in Bangladesh will be on the
same footing as locally owned ones.
Fiscal incentives

1. Corporate tax holiday of 5 to 7 years for selected sectors

2. Reduced tariff on import of raw materials capital machinery
3. Bonded warehousing
4. Accelerated depreciation on cost of machinery is admissible for new industrial
undertaking (50% in the first year of commercial production, 30% in the second year, and
20% in the third year)
5. Tax exemption on capital gains from the transfer of shares of public limited companies
listed with a stock exchange.
6. Reduced Corporate Tax for 5 to 7 years in lieu of tax holding and agricultural deprecation.

Financial incentives for export oriented industries

1. Cash incentives and export subsidies ranging from 5% to

20% granted on the FOB value of the selected products
2. 90% loans against letters of credit (by banks)
3. Permission for domestic market sales of up to 20% of exportoriented companies outside
EPZ (relevant duties apply)

Additional facilities/incentives

1. 100% foreign equity allowed.

2. Unrestricted exit policy
3. Remittance of royalty, technical know-how and technical assistance fees
4. Full repatriation facilities of dividends and capital at exit
5. Citizenship by investing a minimum of US$ 5,00,000
6. Permanent resident permits on investing US$ 75,000
7. An investor can wind up investment either through a decision of the AGM or EGM. He or
she can repatriate the sales proceeds after securing proper authorization from the Central
Bank.