The four fundamental factors of production are land, labor, capital and entrepreneurship. The final factor belies the vital importance of leadership in business settings. Leadership acts as the catalyst that makes all other elements work together; without leadership, all other business resources lie dormant. Savvy business leaders are in tune with the needs and issues of their subordinates, and keep up to date on new developments in leadership theory and methodology to maximize their effectiveness.
Significance
A leaderless organization is like an army without generals. Work forces need the leadership of skilled and experienced individuals to provide guidance and a single direction for all employees to follow. Leaders are invaluable when it comes to formulating and communicating new strategic directions, as well as communicating with and motivating employees to increase dedication to organizational goals.
Functions
Business leaders serve a range of important functions in their organizations. Leaders are responsible for training employees to perform their tasks effectively, as well as supervising the actual completion of those tasks on a regular basis. Leaders must inspire employees to get excited about the company and their work, pushing them to excel and helping them along the way. Leaders are also tasked with protecting the employees under their supervision from internal and external threats, including everything from political backstabbing to physical security.