As a leader, your subordinates look up to you for guidance and count on you to lead them to a path of success. There are plenty of books that teach how to be a good leader, but most of them leave out a very important tool; Psychology. Understanding what motivates your workers and what makes them react to certain situations and perceptions the way they do will help you become a more effective leader. Here are three psychology traits effective leaders should learn how to manage.


Human beings are motivated by rewards. In a work environment, employees’ actions are driven away from losses and more towards gains. However, as a company grows and evolves, it will encounter both losses and profits and this will directly impact the employees. As a leader, you have to balance the two and continuously motivate your staff. Instead of motivating them with superficial incentives, empower and engage them through the challenges. When they feel like their work is meaningful and it has a valuable impact in the real world, they are motivated to work harder and push through the hurdles. Also, when your company succeeds, recognise your employees’ efforts and reward them for their work.

Fear and Anxiety

When in danger, human beings have an automatic fight or flight response. In business, difficult situations are inevitable, and your response as a leader influences the reaction of your staff. When you decide to face a problem head-on instead of running, your employees will stay and fight with you. A good leader recognises that fear can be an overpowering emotion, especially in business situations. He/she is able to place into context factors that cause anxiety and is, therefore, able to think rationally about how to deal with them. Having faith in your company’s vision will help you and your team get over any fear and anxiety, as well as any obstacles that come your way.


In business, uncertainty and change come with the job description. Even if we make predictions about the future, there is no guarantee that things will go as expected. Good leadership is all about preparing and managing uncertainty. Good leaders do not let the fear of the unknown hold them back from making strides, but instead, they make well-calculated risks. Leadership requires courage because it involves making difficult but very necessary decisions.