Essay by ataf78University, Master's July 2009

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Leaders are individuals who guide and inspire others. The performance of a company is greatly influenced by such leaders. As stipulated by Brooks I (2006) "Leaders aim to influence and guide others into pursuing particular objectives or visions of the future and to stimulate them into wanting to follow". Leadership is seen as ones ability to influence the others. Leadership bears its origin from ancient times. We have leaders in all aspects of life, who decide for a whole group. For instance, a coach in a football team often decides the placements of players. The role of a leader can be studied through various theories but only two have been discussed below:Theories of Leadership:-There are basically two theories of Leadership and they are distinguished from each other on the basis of qualities they posses.

Transformational Leadership"A leader who treats relationships with followers in terms of motivation and commitment, influencing and inspiring followers to give more than mere compliance to improve organizational performance."

(Huczynski, 2007) Transformational Leaders are charismatic in nature and this quality does not go unnoticed. Such leaders inspire their followers; motivate them to achieve their goals in a way which benefits the organization. They often help others identify their hidden qualities. They also come up with innovative solutions to solve complex problems. Transformational leadership involves and encourages a lot of creative ideas; there is no criticism of individual mistakes. Such leaders also remember previous conversations of individuals and help them sort out things treating them as individuals and not just employees. Transformational Leaders are often transparent by nature thus they work efficiently in leading a group. In case any situation has to be changed they transform it accordingly but in a way that no one is offended. They often aid employee satisfaction and reduce stress. To conclude...