As we all know, leadership is omnipresent in our daily lives. From the nation to the enterprise, and even in the family, leadership unquestionably plays the main game. In the business world, likely or not, leadership, which is the subject area examined by most researchers, is considered the main vitamin for a strong organization. Literally, what is the true meaning of leadership? According to the Blackwood Encyclopaedia of Sociology, leadership is described as the process of inspiring, directing, coordinating, motivating, and mentoring individuals and/or organizations (Pitsis, 2007). As far as leadership is concerned, leaders of an organization need to increase employee work productivity so as to achieve better employee performance. Furthermore, the term productivity, which can also be defined as organizational effectiveness, is a concept of efficiency that measures the effectiveness with which inputs are transformed into outputs according to the Blackwood Encyclopaedia of Management (2008). Furthermore, performance outcome refers to a variety of measures used to evaluate effectiveness at the individual or organizational level where profit, customer satisfaction and market share are the examples (Cleveland, Performance Outcome, 2008). Through theories and skills as part of leadership knowledge, this essay will talk about the three successful pioneers of modern management: Richard Branson of Virgin, Jack Welch of General Electric, and Percy Barnevik of ABB. Next, the essay will discuss the impact of transactional and transformational leadership on managers and leaders of organizations. Ultimately, the topic of how leadership can motivate employees ensues, and a new mathematical approach regarding employee work performs...... half of the document ......the Blackwell Encyclopedia of Management .Davidson, P. , Simon, A., Gottschalk, L., Hunt, J., Wood, G., & Griffin, R. W. (2006). Management - Fundamental Concepts and Skills (Australian Edition). Milton, QLD, Australia: John Wiley & Sons Australia, Ltd. De Vries, M. K. (1996). Leaders who make a difference. European Management Journal, 14 (5), 486-493.Humphreys, J. H., & Einstein, W. O. (2003). Nothing new under the sun: Transformational leadership from a historical perspective. Journal of Management History, 41 (1/2), 85-96. Palmer, B., Walls, M., Burgess, Z., & Stough, C. (2001). Emotional intelligence and effective leadership. Journal of Leadership and Organization Development, 22(1), 5-10.Pitsis, T.S. (2007). Direction. (G. Ritzer, ed.) The Blackwell Encyclopedia of Sociology .Zaleznik, A. (1992, March-April). Managers and leaders: they are different? 126-135.