Abstract

The efficiency and survival of organizations is dependent on the selection and development of future leaders. It is obvious that organizations of all sizes face major challenges in preparing leaders that can handle major organizational challenges. To be successful, organizations must be willing to invest in building leadership capabilities at all levels of the organization. Organizations with effective leaders tend to innovate, respond to changes in markets and environments, creatively address challenges, and sustain high performance. The major aim of this paper is to study the challenges of effective leadership development in third millennium. The mentioned aim is studied by supposing some variables including self-awareness, self- regulation, empathy, knowledge and high motivation to lead as personal challenges of effective leadership development and organizational culture, lack of continued investment in leadership development, lack of higher management support and lack of synergy between organizational strategy and leadership development strategy as organizational challenges of effective leadership development in third millennium. The research methodology is descriptive and for collecting theoretical aspects of the research scientific books and journals are used. The results of this paper indicate that effective leadership development is a changing field and it is critical that organizations understand their own effective leadership development needs. However, it must be appreciated that this is a “moving target” and because new individuals and new strategies are introduced for the companies should proactively customize a solution based on these needs. This paper is valuable for the organizations and leadership development professionals who are considering or reviewing their current leadership development activity. It makes a number of recommendations for organizations seeking to implement best practice leadership, as well as detailing the likely future nature of leadership development across the board.