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The advancement of modern technology resulted in the rapid flow of information and more complex environment. The organization, therefore, needed to adjust and develop their personnel to have leadership competencies, diversify and be flexible to sustain the organizational effectiveness. The leadership theories consist of five groups, these are Trait Leadership Theories; Behavioral Leadership Theories; Interactive Leadership Theories; Situational Leadership Theories; and Inspirational-Motivation Leadership Theories. Each theory has both distinctive and weak points. As a result, the leadership theories have been changed and developed as time passed by. The majority of the leadership theories emphasized more on the leadership of the leaders than on the leadership of the organization. Leadership factors influence toward the organizational effectiveness. The organization with lots of personnel possessed with leadership competencies would increase the organizational effectiveness.
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