Leadership behaviours lead to highly motivated staff. Subordinates rely upon the leadership skills of their superiors to show them how to achieve their needs of motivation, . rewards and ability to perform their allocated tasks. Leaders resolve interpersonal differences. Formal systems are simplified and attempts are made to create a more open, reactive organizational environment. The need for leadership qualities turns more towards the ability to get people to interact. The capacity to mediate is very important, and the ability to plan and analyse feedback is emphasized. The leader's role is not diminished but it is changed in its nature. Participative leadership involves employee participation in management. Subordinates are consulted for their opinions as part of the decision-making process.