In an increasingly competitive world, organizational structure and effectiveness within companies are key concepts. Effective leadership skills can enhance an organization's growth and success and, internally, create a healthy and functional work environment for employees. It is important to recognize the importance of good leadership skills and how they influence the work process in an organization. This essay will identify leadership and provide definitions and how it is evaluated. It will also identify commonly known traits of a successful leader and the importance of emotional intelligence. Finally, this essay will explain “contingency theory” in order to understand other factors, beyond personal traits and characteristics, that can influence effectiveness within a leader. Definition of Leadership All organizations require management, and management in turn requires some level of leadership skills. The long-term success of an organization depends on its ability to benefit from the skills and knowledge of its employees. In an increasingly competitive environment, organizations must motivate their employees and encourage initiative within the organization. This new organizational climate requires more than a traditional manager, and organizations must find ways to develop leadership capabilities in order to increase effectiveness and remain competitive. In any organization, leadership is often considered a critical factor for success or failure. It can also be said that a leader can be a manager but a manager is not always necessarily a leader (Gandz, Crossan, Seijts & Reno 2014). It is therefore critical that organizations recognize the characteristics and techniques that define success... half of article ......rson & Rowland 1973, p. 407). Leaders can be divided into two categories: relationship-oriented leaders and task-oriented leaders, and depending on the situation and context, one of the two will be better suited to the specific environment. Task-oriented leaders are focused on results, and the relationship-oriented leader is more effective at communicating and creating long-term relationships and goals. The relationship-oriented leader is the one who potentially possesses a higher level of emotional intelligence, due to the empathic aspects. It is therefore argued that, depending on the leadership style, the situation of the organization and the context, one leader is more successful than another. This means that a leader may have attributes that will be better suited for a certain context or organization and will therefore work more effectively to achieve goals (Hunt 1967, p.. 302).