A leader is any person who influences individuals and groups within an organization, helps them in the establishment of goals, and guides them toward achievement of those goals, thereby allowing them to be effective. Leaders are needed because they create order and organization in groups, allowing them to achieve their goals; they help people make sense of the world and can serve as ideal and romantic symbols for their followers. To be effective, leaders must help the organization maintain internal health and external adaptability. Despite the apparent simplicity of the definitions of leadership and effectiveness, both are difficult concepts to implement.

Various studies propose separate definitions for leadership and management. The activities performed by leaders, however, are similar to those typically considered the domain of effective managers. Although some view the roles of leaders and managers as being different, effective, and competent, managers are often also leaders within their groups and organizations. In addition to performing the traditional managerial roles and duties, leaders also play a special role in the creation of a culture for their organizations. They can affect culture by setting the vision and direction, making direct decisions regarding reward systems, hiring other managers and employees, and being role models for others in the organization. The role of leaders is changing with our shifting expectations and global and organizational pressures. Leaders find themselves providing more vision and direction and focusing on results rather than command and control. While new roles take hold slowly, political, economic, demographic, and social changes drive the need for change. However, leaders find use of traditional models, lack of involvement of followers, and falling back on old practices hard obstacles to overcome.

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