Abstract
The research conducted was intended to determine the quality of relationships and exchanges between the leaders and followers, as well as the importance of ethical leadership in metal industry of Serbia. The research has identified several significant recommendations for leaders and high level managers about what should they in particular focus on in their work. First of all, leaders need to pay attention to their employees. This means that they need to understand the problems the employees face when working, to recognize the potentials and abilities of their employees, as well as to demonstrate to employees the extent to which they are satisfied with their work. In addition, leaders need to be fair and have personal integrity. Only in this way, they can gain and maintain authority over employees.
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