Effective leadership makes a positive impact on the motivation of members of a work group. This is due to the following reasons :
i) Leadership creates a congenial work environment and thus ensures job satisfaction.
ii) It enables group members to achieve individual goals as well as organisational goals.
iii) It provides for a proper system of rewards and incentives for capable employees, which includes both financial and non-financial incentives.
iv) The leader’s concern for the well-being and development of subordinates promises self- fulfilment to every group member.
An effective leader-manager helps and supports his subordinates in the light of their individual values and expectations. This supportive relationship increases their motivation as it builds and maintains a sense of personal worth and importance of each individual.