In recent years, the world has become a boundless society. Increasingly,
organizations have to change in the new millennium. Effective organizations are
competitive, show profit and growth, value innovation, experience customer
satisfaction and employee satisfaction. To manage organizations effectively, leaders
must keep a balance between the system and people. Two categories of leadership
are identified: transformational leadership and transactional leadership. Leaders have to
have a clear vision, for instance, to become an outstanding business university in
Asia. Leaders are responsible for vision and core strategy. To meet the vision and
core strategy, organizations have moved gradually from a traditional bureaucratic
structure into a horizontal structure, a complex and yet flexible network. Therefore, the
role of a leader focuses on the quality of the people within the organization. Effective
employees perform well; solve problems and anticipate potential problems in the
future. Whenever employees become responsible people, organizations are not only
competitive in their local markets, but can also be globally competitive. These changes
impact on profit and growth of organizations.