Introduction In modern organizational environment, leader-manager faces diverse challenges caused by internal and external causes and economic changes. The purpose of modern management is to provide organization with a framework in which decisions can be made which will have an impact on the organization. A conscious effort to systematize the effort and to manage its evolution is preferable to an unmanaged and haphazard evolution. The basic planning problem is how to allocate the organization’s limited resources. The major benefits to be expected from planning include an improved sense of direction for the organization, better performance, increased understanding of the organization and its purpose, earlier awareness of problems, and more effective decisions. Long-range planning is most often an extrapolation of the present. The main challenges discussed and described by theorists (Mintzberg (2007), Goleman et al (2002), Kouzes and Posner ()2007, Boyatis and McKee (2005) are motivation and inspiring of employees, ethical issues and development of the organizational culture in international and multicultural organizations. Theorists There are several leadership theorists that attempted to quantify leaders through various metrics. Mintzberg (2007), for instance, provided qualities usually observed in transformational leaders. Kouzes and Posner ()2007) further explained the idea quantifying leadership through motivation and cgange. Based on the metrics, transformational leaders are believed to be guided by five dimensions. On the other hand, Boyatis and McKee (2005) noted that there are three primary aspects that define the existence of leaders. Aside from the set leadership qualities, there are theorists that provide suggestions on how effective leadership is accessed. There are various qualities that have to be possessed to ensure that leadership among individuals will evolve continuously (Segriovanni and Glickman 2006). Although there are several qualities involved, the universal though states that both tangible and intangible attributes are necessary. The level of technical of technical skills is important as well as the charisma exuded by leaders (Armandi et al 2003). Challenges of Motivation Motivation is often considered one of the oldest concepts in management, thus, it is still one of the most difficult processes for leader-managers. The challenge is that it is extremely difficult for modern leader-managers to motivate and inspire employees, analyze their needs and meet these needs. Lack of leadership and management skills may lead to a failure, low productivity and poor organizational performance. In modern environment, the main challenge is that leader-manager deals with culturally and economically diverse workforce, so he/she should be well aware of motivational theories and their practical application (Barker 2001). Motivation is one of the main factors which influence productivity and morale, feelings and human relations in the workplace. There are different theories of motivation which try to explain human needs and intentions, intrinsic and extrinsic drivers. People with a high degree of achievement motivation are more persistent, realistic, and action-minded than people with other