| Summary: | The purpose of this thesis was to identify the importance of effective leadership towards improving organizational performance. The main objectives were to determine the behaviors, characteristics and skills of effective leadership to establish the foundation for organizational performance. The support from Mr. Sami Teittinen who has led the sales office operations at UPM Voikkaa Paper Mill and had a long history of leadership in various departments contributed a lot to this thesis. In the be-ginning of the research leadership theories, various leadership qualities and leadership behaviors were discussed. The research also described various dimensions of leadership styles that help build relationship within employees and their impact on organization. Furthermore, training programs that help leadership development and improve organizational performance were discussed. A qualitative research method was used as a research method for this study and a questionnaire was sent to Mr. Sami Teittinen and a short ZOOM discussion was held as well. One of the major reasons for the UPM Voikkaa Paper Mill's success at the supply chain department was the effective leadership impact of the Head of sales operation. The outcomes from the research revealed that with good leadership, the organization can collectively handle difficulties in challenging times, promote profit and create value for the organization. Certainly, an organization must develop their leaders and have effective leadership if they want to improve performance and sustain for a longer period.
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