Business environments these days make it vital for organisations to have a competent manager and leader, who knows his own responsibilities; but can also guide and direct others in their work areas. Companies select leaders who can use their leadership techniques to modify their company into a secure and profitable business. Effective leadership undoubtedly affects work motivation, as it can increase team morale and motivation and can also save a company time and money, increase work satisfaction and improve efficiency.
Leadership is an essential factor for business success or failure. The role of the leader is to create a clear objective so that employees can identify how and what needs to be done to accomplish it. Employee morale has also got to be high as it affects the productivity and efficiency of the company. Leadership is seen as the ability to get people to do something willingly for a sustained period of time and is a subject where the requirements change throughout time.
There are many advantages in having well motivated employees such as: fewer sick leaves, fewer complaints, increased attention, and higher productivity. To be a good motivational leader the key skills a person must have are: knowledge and skill, effective communication - e.g. speaking and listening, confidence, commitment, energy, awareness and openness. Leaders will not be able to apply one principle and method for all subordinates, they will have to work with each employee or team individually and learn to which leadership and motivational styles are applicable to that individual. The adaptation to find the most efficient motivation through leadership style can be referred to as Situational Sensitivity.
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