According to Peter Drucker - "An effective leader is one who can make ordinary men do extraordinary things, make common people do uncommon things.

Leadership is a lifting of a man's sights to a higher vision, the raising of man's standard to a higher performance, the building of a man's personality beyond its normal limitations." This view point of Peter Drucker stresses the leaders' obligation to attain organizational goals and gives attention to the needs of the individuals who are his subordinates.

The important functions of a business leader may be briefly summarized as follows:-

  1. To take the initiative: A leader initiates all the measures that are necessary for the purpose of ensuring the health and progress of the undertaking in a competitive economy. He should not expect others to guide or direct him. He should lay down the aims and objectives, commence their implementation and see that the goals are achieved according the predetermined targets.
  2. He identifies group goals: A leader must always help the group identify and attain their goals. Thus, a leader is a goal setter.
  3. He represents the organization: A leader represents the organization and its purpose, ideals, philosophy and problems to those working for it and to the outside world .In other words, leaders is true representative of the entire organization.
  4. He acts as a arbitrator: When groups experience internal difference, whether based on emotional or intellectual clashes, a leader can often resolve the differences. He acts as an arbitrator to prevent serious group difference.
  5. To assign reasons for his action: It is a delicate task of leaders to assigns reason to his every command. He has to instruct things in such a way that they are intelligible to all concerned and their co-operation is readily forthcoming.
  6. To interpret: He interprets the objectives of the organization and the means to be followed to achieve them; he appraises his followers, convinces them, and creates confidence among them.
  7. To guide and direct: It is the primary function of the leader to guide and direct the organization. He should issue the necessary instructions and see that they are properly communicated.
  8. To encourage team work: A leader must try to win the confidence of his subordinates. He must act like the capital of a team.
  9. He manages the organization: Last, but not the least, he administers the undertaking by arranging for the forecast, planning, organization, direction, coordination and control of its activities.

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Principles of Management and Organisational Behaviour Topics