Leadership has traditionally been understood as the process through which managers influence employees to achieve organisational objectives by providing direction, controlling activities, and ensuring coordination. Classical leadership models such as autocratic, democratic, and laissez-faire approaches, along with theories like trait theory, behavioural theory, and situational leadership, have significantly contributed to the understanding of managerial effectiveness. However, the contemporary business environment is characterised by rapid technological advancement, globalisation, workforce diversity, changing employee expectations, and unpredictable market conditions. In such an environment, traditional leadership models often face limitations because they were largely developed for stable organisational settings where authority, hierarchy, and standardised processes dominated decision-making. Modern knowledge-driven organisations require leadership approaches that are flexible, inclusive, and capable of managing complexity and uncertainty. Traditional leadership models become inadequate primarily because they often emphasise authority, control, and formal organisational structures. The traditional command-and-control approach assumes that leaders possess the knowledge required to make decisions and employees mainly execute instructions. While this approach may be effective in routine and predictable environments, it becomes ineffective when organisations face uncertain situations requiring creativity, innovation, and rapid responses. In knowledge-driven organisations, employees possess specialised expertise and valuable information, making it difficult for a single leader to understand and control all aspects of organisational operations. Therefore, leadership must shift from controlling employees to facilitating collaboration, learning, and innovation. Technological disruptions have further challenged traditional leadership approaches. The emergence of artificial intelligence, automation, digital platforms, and remote working systems has transformed how organisations operate. Leaders are required to manage virtual teams, encourage digital adaptation, and integrate human capabilities with technological resources. Traditional models based on physical supervision and hierarchical communication are less effective in digital environments where employees may work independently across geographical boundaries. Contemporary leaders need technological awareness, adaptability, and the ability to create a culture of continuous learning. Workforce diversity is another factor reducing the effectiveness of conventional leadership models. Modern organisations include employees from different cultural backgrounds, generations, genders, and professional experiences. A leadership style based on uniform expectations and standardised motivation techniques cannot effectively address diverse employee needs. Employees today seek meaningful work, recognition, flexibility, career growth, and opportunities for participation. Leaders must understand individual differences and develop inclusive practices that encourage equal participation and respect for diverse perspectives. Uncertainty in business environments also demands a transformation in leadership thinking. Traditional approaches often focus on planning, prediction, and stability, whereas contemporary organisations must operate in conditions of volatility and ambiguity. Leaders must be able to