Leadership is a collective action which is best taken by the help of team members. All work at their own levels and their efforts are combined to give synergy effects for the vision, strategy making and implementation process are essential for the growth, success and even survival of the organization. Behind every successful organization the efforts in the form of direction, inspiration, empowering and enabling the employees in accomplishing the tasks is there. A team and a leader are reflections of each other. Employees feel valued and privileged as they are assigned with decision making power with authority. This results in committed efforts from the employees by gaining complete knowledge about their targets and is therefore able to take corrective actions and make amendments wherever possible. It facilitates prompt decisions and timely action taken for the achievement of desired objectives and even taking corrective actions wherever necessary as it saves time which is needed more in the centralized form of organizations as there all the decisions are taken by the top management only. Problem of fragmentation is faced by the leaders as earlier in a centralized organization the employees work as a team as whole but now they are divided into different small teams by which they may lose the sense of team spirit and work just for the accomplishment of tasks given to their group. The sense of working for the organization as a whole depletes in decentralized organization and employees just work for their groups. Because of this feeling of working only for the group each area gets affected by the workings of employees at each level and no leader can remove it completely as all he leaders have conflicts between them also. It reduces the productivity and research and development for the new product as each department is concise to its own level. Thus they don’t share their valuable ideas and advices for the production and development of the products being offered by the company.