Most economists will agree that leadership is the most demanding manegerial task or function by which the employees are being motivated and directed to carry out their specific work assignement. There are many leadership styles in theory and practice; from democratic in which also the employees are included in the decision-making process to autocratic where the leader has unlimited authority and decision-making power. Although there are many researches that prove the existence of causative-consequential relationship between the achieved corporate result and the leadership style, there is still no opinion which leadership style is the best for the corporate success of the company. Which leadership style to use depends on several components: creating the climate of support and security, communication, motivation, establishing of goals, interaction, making decisions and control. Leadership style is manifested in the way the leader motivates employees to accomplish tasks. It needs to be empasized that leadership style is not determined by traits and characteristics of the leader only, but also by traits of the employees and the specific situation according to which action needs to be taken. One of the most popular behavioral leadership models is also the model of Rensis Likert which is based on differentiation of various styles and their consequences and dimensions in organization. Hence, in 1961 Likert has defined four leadership systems, or as he named them „participative-democratic system of efficient work groups.“ The first system is exploitative authorative (autocratic) style and the second system is benevolent authoritative (paternalistic) style, while the third is consultative style and finally the fourth sytem is participative style. Each style fits certain conditions and certain situation, whereas every one of them has its advantages and disadvantages.