Organizational leadership is an art of dealing with human psychology in terms of employees of the organization and the use of expert tactics for being a leader for leading a group. Effective leaders not only accomplishes the goals but they help their team members in reaching their highest potentials which leads to the accomplishment of the personal goals also. Decentralization gives the authority, responsibility and power to employees for taking actions which makes them accountable for the actions performed by them and this reduces the burden of the management of finding ways to get the work done by the employees. Decentralization gives rise to conflicts and grievances between the leaders at each level as each leader wants his team to perform best and achieve the targets on timely basis. It happens because each leader is under utmost pressure of meeting the targets and to give maximum revenues to the organization. Here the topic will highlight the effects of decentralization of authority, decision-making responsibility and accountability on the effectiveness of the leaders in an organization and in the achievement of the desired outcomes by the team.