The multidimensional effects of Liberalization, Privatization and Globalization (LPG) have changed the organizational structures and systems. Different organizational structures in different sectors pose different challenges for the leaders, which has to be dealt by the leader in an effective manner. Leaders have to focus on social capital and build more productive relationships that enhance networking, collaboration and resource exchange.

With increasing demand for competitiveness and effectiveness, today's employers are interested in `managing diversity' to get the employees working to their full potential. A conducive working environment is the prime result of the leader's behavior and it is reflected in the organization's culture and job satisfaction of the employees of the organization. Economic liberalization and globalization has transformed the Indian economy into a globalized economy, requiring the `cross-cultural' attitude of leaders. A visionary leader can manage goals that lead to short- and long-term benefits for the organization and encourage the employees to work as a team, focusing on organizational goals.

Leadership is the process of influencing people to work in a cohesive environment and thereby achieve organizational objectives (McShane, 2003). Successful leaders create a work culture within the organization so that employees can set and achieve individual, team, departmental and organizational goals. Inculcating a positive attitude and ethics in the employees is the need of the hour. Leaders are a focal point to the process of managing human resources with knowledge. Managing knowledge includes three key processes: creating, sharing and exploiting knowledge. Converting knowledge into competitive advantages may lead to understanding leaders and organizations. Transformational leadership could be more effective for exploiting knowledge. Leaders provide motivation, vision, orientation for systems and structures at all levels of the organization.

Global CEO Magazine, Liberalization, Privatization and Globalization, LPG, Organizational Structures, Information Technology, IT, Global Markets, Economic Liberalization, Organizational Objectives, Decision Making, Transformational Leadershiporganizational Goal, Economic Globalization.