What Is The Importance Of Leadership In The Workplace?

Updated 13 September 2023

Leadership is an essential management function that helps an organisation to direct its resources for goal accomplishment and enhanced efficacy. Influential leaders are professionals who know how to motivate and guide the employees of an organisation to achieve success and impact people. Regardless of your job role, you can benefit from learning about the importance of leadership, as it can allow you to contribute meaningfully towards organisational goals. In this article, we discuss the importance of leadership, explore why organisations need effective leaders and outline a few qualities of a good leader.

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What is the importance of leadership in the workplace?

Leadership serves several functions crucial to the success of an organisation, but the main importance of leadership is that it provides a vision for the company. Leaders also articulate the vision and what members of the organisation can do to achieve it.

An organisation may have multiple skilled professionals, each with specialised talents and capabilities, but it is only through efficient leadership practices that they can harness individual efforts towards achieving the organisational goals. By inspiring and motivating teams and coordinating personal actions for the advancement of a common goal, leaders help their companies achieve excellence.

Why do organisations need effective leadership?

Most organisations have talented employees who have the right skills and experience to deliver results. But they still need a leader to direct the energy of their employees towards a common goal. Here are some reasons organisations need effective leadership:


Successful leadership in organisations can help develop a clear vision of the long- and short-term goals that the organisation can achieve. Influential leaders in workplaces help create a definite roadmap, highlighting the steps, methods and resources that their company can use in achieving their goals. Effective leadership is crucial for an organisation to succeed in its various ventures, as it allows them to move from ideation to execution.


Capable leaders are effective communicators who can help promote the company's vision, mission and market its products and services to the right audience. Through communication, brand-building activities can occur, as it enables leaders to communicate with various stakeholders the company is serving or targeting. Clear communication at work results from good leadership, and it helps direct the roles and responsibilities of every employee in achieving organisational objectives. When leaders engage in active communication, they can better manage crises at work.

Read More: Verbal Communication Examples In The Workplace (With Tips)


Good leaders are strong decision-makers. They make quick and informed decisions for the organisation in most situations. Leaders are experts at making the right decisions for the organisation and its people based on the prevailing circumstances. Good decision-making also enables leaders to consider their company's strengths and weaknesses and make choices that can put them ahead of the competition now and in the future.

Read More: What Is Decision Making? Definition, Types And Tips


Passionate leaders drive their teams to complete ambitious business projects. An organisation grows when leaders are passionate about its vision and mission and inspire others to achieve company goals. Effective leaders encourage people, including employees and stakeholders, to be as passionate about the company's objectives as they themselves are. They also provide everyone with a powerful reason to remain dedicated to their duties.

Related: Top Qualities Of An Outstanding Leader


Effective leaders provide systematic guidance and direction to employees and executives to help them perform their roles efficiently. Leaders oversee the work of employees to make sure that there is no lapse in the workflow and that professionals complete their tasks on schedule. Effective leaders also make sure employee efforts align with organisational goals for improved efficiency.

Related: What Is Paternalistic Leadership? (With Pros And Cons)


Influential leaders are professionals who commit to an organisation's vision, mission and the success of its business endeavours and employees. Good workplace leadership practices ensure that all stakeholders and employees focus on the company's long-term objectives and do not allow temporary setbacks to hold them back. Leaders motivate their team to see beyond the immediate problems and seek alternative ways to achieve their goals in challenging situations.


Successful leadership teaches the organisation ethical values. Regardless of their problems, successful leaders do the right things to achieve their goals. For them, integrity, truthfulness and fairness are core attributes they want to see in their company and its relations with contractors and clients.

Read More: What Is Integrity? Definition And Examples


Confidence is a crucial asset of effective leadership in workplaces as it motivates leaders and employees to achieve organisational goals while having a strong belief in the company vision. Confident leaders lay the foundation of successful business ventures as they help their team and subordinates to excel in their duties and express confidence in their abilities. They listen to employees' worries about their work, provide positive feedback and ensure the office environment brings out the best in them.


Good leadership helps boost staff morale by uplifting their spirits, giving them positive feedback, expressing faith in their abilities and winning their trust. When leaders constantly encourage employees to perform better, it also assures the team of their confidence in delivering on the vision and mission of the organisation. High morale among employees shifts their focus towards important issues and reduces distractions while enabling them to devote their energies to achieve organisational goals.


An organisation continues to grow and develop under the guidance of good leaders and effective leadership practices. Good leaders create an environment where it becomes possible for all employees to grow to their best potential and achieve results for the business. Growth becomes easy to attain when employees are open-minded and flexible to achieve their goals, despite the challenges. Successful leaders are participative and encourage employee interaction to know about the processes that hamper growth and improvement.


Efficient leadership practices in the workplace help balance the personal interests of professionals with the shared organisational objectives. Leaders know that employees have personal reasons to work for the company, yet they effortlessly coordinate their needs with the company requirements to achieve promising results. Coordination at the workplace also ensures that employees are happy and satisfied with their work and that help is available to them in difficult situations.

Related: What Is The PAEI Leadership Model? (Definition And Examples)

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Qualities of a good leader

Here are some of the qualities of a good leader:


Good leaders are great innovators who embrace and suggest new ideas, projects, strategies and practices that can help improve the workplace. Innovation enables these professionals to implement creative ideas while also giving freedom to their team members to share their vision and ideas with the team and decide on the most workable option. Innovative leaders are not afraid to fail and take risks as they see these setbacks as opportunities for growth and development. Innovation also allows leaders to think differently and listen actively to the opinion and feedback of their team.


No leadership practice or strategy can be successful without honest leaders. Honesty is the core strength of a leader, as it allows them to be truthful with their team regarding the workflow, challenges and long-term vision of the company. Honest leaders are trustworthy professionals who get respect for being open about their problems and struggles while encouraging employees to perform better. Honesty also builds loyalty, as employees find them approachable, relatable and authentic in their professional conduct.

Active listening

Influential leaders are active listeners who want to know about their employees' problems or listen to their stories. Active listening enables them to assess each individual's strengths and weaknesses and allot tasks that complement their skills and talents. Influential leaders know that listening is a symbol of respect, and when they engage in active listening, they assure the employees that their ideas matter to them and that their work holds value. This quality also helps leaders build lasting relationships that help them on their professional journey.


Leaders value their time and know they cannot take care of all essential tasks, so delegation is a necessary quality that good leaders master initially in their careers. Delegating tasks to other proficient employees shows the leader's trust and belief in their capabilities. This quality is also crucial, as it helps increase organisational productivity and team performance and helps leaders prioritise and dedicate their attention to the most critical tasks.


Good leaders know problems are unpredictable, so they possess practical problem-solving, time management and analytical skills to consider the impact of an issue and find workable solutions to the problem. These professionals do not let problems hamper their workflow. Instead, they have strong attention to detail that helps them identify problems, sometimes even before they occur. Having problem-solving skills is crucial for influential leaders, as it can help them eliminate potential barriers to effective workflow practices.

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