This is the age of leadership and management. Every group activity requires some sort of leadership to organise and direct the group's effort toward some previously decided goals. Although management and leadership are different from each other, they are remarkably close too, especially in the dimension of human relationship. Leadership is the process whereby one individual influences other members of the group towards the attainment of defined group or organisational goals. The success of different organisations, especially educational institutions, depends on effective and efficient principals. Efficiency and effectiveness are sometimes regarded as the same thing. Their commonly recognised indicators are profitability, productivity, various financial ratios and quantity and quality of outputs (qualified students, new experiences, new procedures, etc.). However, this view is now being disputed and the two are considered different. While efficiency is generally indicated by the ratio of output to input, effectiveness is taken to relate to achievement of objectives. This article discusses the perspectives of managerial effectiveness. Approaches to managerial effectiveness are also described. Lastly, strategies for improving managerial effectiveness are presented. (Contains 2 tables.)