The purpose of this report was to identify the characteristics of effective leaders in the field of business. To that end, a qualitative review of relevant literature was undertaken. A number of theoretical discussions of leadership were included. Specifically, Fiedler's theory of situational or contingency leadership and theories of transformational leadership were examined in the report.
The literature suggests that the effective leader today is a person capable of articulating a strategic vision for the organization, motivating others to achieve that vision, empowering subordinates, effectively communicating with all stakeholders, and functioning as an agent of change. Effective leaders do not appear to be "born" but they do appear to share a number of key characteristics or personality traits that distinguish them from followers.
Leadership is increasingly linked to effective business strategy and to strategic thinking at all levels of the organization. Leaders may function differently during different stages of the corporation's life. Above all, effective leaders are credible, dedicated, passionate, competitive, realistic, willing and able to make strategic moves, and capable of attracting the right talent to their organizations. They are also flexible and able to capitalize upon new opportunities.
There are as many definitions of leadership as there are writers on the topic. Jon L. Pierce and John W. Newstrom categorized 12 different approaches to the definition of leadership, including: leadership as a focus of group processes, as personality and its effects, as an act or behavior, as an instrument of goal achievement, as a power relationship, as a form of persuasion, as the exercise of influence, as the art of inducing compliance, as the initiation of structure, as a differentiated role in a social system, and as an emerging effect of interaction.
In each of these categories, lea...