The Importance of Leadership in Effective Business Management

Paper Type:  Essay
Pages:  2
Wordcount:  438 Words
Date:  2021-03-10

The success of businesses is depended on the nature of its leaders (Kaiser, Hogan, and Craig, 2008, p.96). In this regard, business managers with good leadership skills are often likely to be successful in their various business endeavors. However, successful businesses not only require leaders but also managers who can offer effective business plans and good work organization. According to Rainey (2010) the coordination of business leaders as well as their ability to act as the servants of their subjects can be an effective way to manage a business. Leadership is the art of influencing people in an organization so that they can willingly, efficiently and effectively execute their mandates (Goetsch, and Davis, 2014). Effective leadership entails business success that is coupled with stability and cohesion among the leaders and their followers. Additionally, it is a cardinal rule of good effective leadership that managers should effectively plan and control the people and processes that they are supposed to influence.

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In the opinion of Voon et al. (2014, p.25), a leadership that provides purpose and inspires trust is important for achieving the short and long-term goals of a business enterprise. Indeed, managers should not only act as supervisors but also act as role models for the rest of their subjects. Leading from the front instills teamwork and equality, which in turn is beneficial to the business entity. More importantly, effective business management is based on the personal qualities of the manager as well as the possession of practical skills in business management (Gallos, 2014, p.50). This paper focuses on the importance of having a good leadership in the effective management of business enterprises.

Research Questions

This research will aim to answer the following questions;

What is effective leadership and how does it differ from the normal leadership?

What is the importance of leadership in effective business management?

What constitutes good and bad leadership in the management of businesses?

What do leaders and their followers consider as good leadership?

What are the roles of managers in providing effective leadership in management of businesses?


Gallos, J.V. ed., 2014. Business leadership: a Jossey-Bass reader. John Wiley & Sons. pp.40-52Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. pearson.

Kaiser, R.B., Hogan, R. and Craig, S.B., 2008. Leadership and the fate of organizations. American Psychologist, 63(2), p.96.

Rainey, D.L., 2010. Sustainable business development: inventing the future through strategy, innovation, and leadership. Cambridge University Press.3(1),pp.10-34

Voon, M.L., Lo, M.C., Ngui, K.S. and Ayob, N.B., 2011. The influence of leadership styles on employees job satisfaction in public sector organizations in Malaysia. International Journal of Business, Management and Social Sciences, 2(1), pp.24-32.

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The Importance of Leadership in Effective Business Management. (2021, Mar 10). Retrieved from

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