Ram is running his father's business. According to his father, Ram is doing his best in this field. He always influences the behaviour of people, plays a key role in introducing required changes in the organisation, handles conflicts effectively and is always ready to train subordinates.

Which of the following concept is explained in above given lines?

Importance of leadership

The correct answer is option 2- Importance of leadership.

The importance of leadership can be discussed from the following benefits to the organisation:

(i) Leadership influences the behaviour of people and makes them to positively contribute their energies for the benefit of the organisation. Good leaders always produce goods results through their followers.
(ii) A leader maintains personal relations and helps followers in fulfilling their needs. He provides needed confidence, support and encouragement and thereby creates congenial work environment.
(iii) Leader plays a key role in introducing required changes in the organisation. He persuades, clarifies and inspires people to accept changes whole-heartedly. Thus, he overcomes the problem of resistance to change and introduces it with minimum discontentment.
(iv) A leader handles conflicts effectively and does not allow adverse effects resulting from the conflicts. A good leader always allows his followers to ventilate their feelings and disagreement but persuades them by giving suitable clarifications.
(v) Leader provides training to their subordinates. A good leader always builds up his successor and helps in smooth succession process.