This chapter offered different views on the concepts of leadership and management. Leadership as one of the functions of management was discussed and arguments from various authors were offered as to why leadership in this millennium is the most important skill to ensure the success of organisations operating in today’s dynamic global environment. Against this background leadership was assessed from the viewpoints of the leader, the team members and the situation, the leader and the team members’ relationship and the new paradigm shift in leadership approaches was examined. This discussion offered on the approaches and leadership styles shows that traditional leadership styles are no longer sufficient to address present day challenges. Transformational and transactional leadership were identified as the two main current leadership approaches. The model of transactional leadership explained the old paradigm to leadership while the transformational leadership approach emphasises individualised influence, inspirational motivation, intellectual stimulation and individual consideration. A transformational leadership style is the most appropriate style to manage people in today’s dynamic environment where the workforce is diverse. As change agents, transformational leaders can transform teams or organisations by creating a vision, building a commitment amongst team members and inspiring their team members to strive for that vision.
This chapter aimed to provide an all-inclusive view in terms of the components, skills, traits, characteristics of an effective leader. These core skills of effective leaders are to be vision driven, a go-getter and results-driven. The characteristics of an effective leader are to be exemplary, analytical, committed to excellence, to be a participatory decision maker and confident. These characteristics are of crucial importance for Silent Generation, Baby Boom, X, Y, Millennium and Post Millennium that characterise the labour force and consumer market in today’s global environment. It is interesting to note that these effective leaders’ skills and qualities can be enhanced through training, trained enhance training, mentoring and coaching. Because of the exposure in the media of many industry scandals and unethical behaviour of certain executives, the need and importance of ethical leadership was discussed in this chapter. It concludes with the factors that affecting the style of leadership and gives an overview of leadership at public institutions of higher learning necessary to cope with the challenges experienced there. The next chapter gives an overview of organisational transformation, the dependent variable for this study.