ABSTRACT

This chapter discusses the important characteristics of leadership and the key tasks it is called to perform. It explores the main leadership theories: trait theories, behavioural theories, contingency theories and emerging theories. The chapter explains the differences between management and leadership, and describes leadership challenges. The importance of leadership in business life has been recognised for years but it assumes an especial relevance in modern buyers' market environments where the worldview held by leaders needs to be realistic. In a new attempt to isolate the essence of leadership, theorists identified common leadership styles. In the light of the challenges facing many organisations' operating environments it is essential for those in positions of authority to practice real leadership skills. In a business world that presents organisations with multi-faceted and emerging challenges that require complex and innovative solutions there is a growing need for a collective leadership environment.