Need for Leadership


An organization needs leadership on a continuous basis. The following reasons highlight the need for leadership.

1.      Imperfect organization structure: It is not possible for any organisation structure to provide to all kinds of relationships. This explains the existence of informal group within the framework of a formal organisation. With effective leadership, imperfection of a formal organisation structure may be corrected and the formal and informal groups may be made to work in unison.

2.      Technological, economic and social changes. In the face of rapid technological economic and social changes, the organisation is required to effect suitable changes in its operations and style. For example, in the event of a fall in demand, it may discontinue production of certain goods and services, or take up production of alternative goods and services. Only and effective leadership can enable it to meet the challenges posed by environmental factors.

3.      Internal imbalances inspired by growth: As an organisation grows in size and complexity, it may develop certain imbalances. For example, increase in organizational activities may lead to increase in the levels of management, thus adding to complexity of the organisation structure, and problems of command, co-ordination and control of work at all levels. Only an effective leadership can steer the organization through such situations.

4.      Nature of human memberships. Persons working in an enterprise come from different backgrounds and have different interests, values, beliefs and intellectual and temperaments make-up. Again, each member is a part of different social groups, e.g., the family, neighborhood group, etc. which are external to the organisation and beyond its control. The influence of these groups on the attitudes and behavior of the individual members may at times create a conflict between individual goals and group interest.

An effective leadership can create a suitable motivational framework which provides for satisfaction of different needs and motives of the organisation members as also resolution of individual -group conflicts.