LEADERSHIP IN MANAGEMENT AND ITS IMPORTANCE IN MODERN ORGANISATIONS IN DEVELOPING NATIONS

Leadership is a key management function as it facilitates organisations to coordinate people, allocate resources, copy with uncertainty, and transform strategic goals into joint actions. These type of management functions can play an especially significant role in developing countries, which face limited resources inconsistent managerial capabilities, fast institutional changes, and the need to increase efficiency and service quality. This article examines how leadership affects performance of organisations in the developing countries and why the effect depends on the context. It uses a structured review of several selected peer-reviewed reviewed papers, together with a World Bank report on performance of public workforce. As a result five interrelated mechanisms have been identified: providing strategic direction and coordination; motivating and developing employees; encouraging organisational learning and innovation; ensuring accountability and ethics; and adapting to institutional and cultural conditions. Overall, the reviewed studies suggest a positive effect of transformational leadership on employees and organisations, but not prove the claim about its universal effectiveness. Cultural requirements, management practices, available resources, and learning are among factors determining how leadership produces results.