In the field of business and economics, any productive activity requires land, labor, capital and entrepreneurship. However, in the absence of strong and effective leadership, the other three factors will remain dormant. Entrepreneurs and business managers need to be effective leaders with the ability to assist an organization in optimizing its productive capacity and accomplishing its strategic goals. On the other hand, people who operate a business enterprise but lack these necessary skills can ruin the financial health of the establishment. Effective Leadership may not be a solution to all the problems that a business organization may face but there are certain qualities that the individual running such an establishment must possess.
Bradley Sterling, a Managing Partner in Columbus Consulting says there many diverse leadership styles in the field of business, trade, industry and commerce. Moreover, it is difficult for any expert to identify which style is more effective and efficient than the other. However, an individual with exemplary leadership skills who runs a business organization should be able to:
- Provide Guidance
Managers and entrepreneurs must have the ability to offer meaningful supervision and suggestions to their employees when it comes to run a business establishment. If the need arise, they should go out of their way to show their workforce how to perform various tasks efficiently and effectively.
- Motivate the workforce
Effective business leaders worth their salt are able to motivate their staff and employees to work hard to accomplish the goals of the business enterprise. They usually inspire their workforce through either incentive or fear. However, which method is more effective depends upon the leader’s style and organizational culture of the organization.
- Initiate Action
It is important for entrepreneurs and business managers implement a plan of action to achieve the organizational goals. They need to decide which employee, will perform a particular job, the time it will to complete it and the means to accomplish it.
- Build Employees’ moral and satisfaction
Entrepreneurs with strong leadership skills are able to increase the productivity of their workforce by building the employee’s confidence. The same is true of individuals who run and manage the affairs of a corporate organization. In addition to this, such leaders endeavor to create a positive working environment within their organizations that acts as a catalyst in increasing productivity.
- Harmonize Employee and Organizational Needs
An entrepreneur and business manager’s most important task is to align the need of his/her workforce with those of the business enterprise. He/she must be able recognize how an employee’s interests and talents can benefit the establishment and be a means of accomplishing the goals of the organization.
- Delegation of responsibilities
Entrepreneurs with effective leadership skills are aware of what tasks they should delegate to their workforce to achieve the goals of the business enterprise. Delegation of authority is also important for keep the organization effective and productive. In addition to this, they can also maintain the satisfaction of their staff and employees by allotting responsibilities to complete certain assignments.
Bradley Sterling says an entrepreneur or manager who can perform the above tasks usually is a class part in the world of the business and finance.