This paper analyzes one of the most important aspects of management: leadership. It is one of the five functions of management, which primarily relates to people and social interaction. If companies do not have good leadership and capable leaders, it is very likely that they will not survive in the market. It is widely known that leadership is one of the most studied disciplines of management so it is no wonder that there are a lot of theories of different theorists, although most definitions have some common elements. This research should analyze the characteristics of which are based the results of a good leader, define the differences between management and leadership and explain the activities and elements of leadership. The results of the research can be concluded that this is not a condition, but the process that takes place between the leader and his followers, or the group to which he has influence. The work of leaders should be focused on aspects related to be, rather than on aspects relating to do.