Abstract: The article examines the delicate balance leaders must strike when cultivating personal relationships with direct reports. While friendly and empathetic relationships can foster teamwork, productivity, and morale, leaders must also maintain clear boundaries to avoid favoritism and compromising their authority and objectivity. The article explores strategies for establishing appropriate professional distance, actively listening to build understanding, facilitating team bonding through shared experiences, and promoting autonomy and growth through empowering leadership. By approaching interpersonal connections judiciously and for the right reasons, leaders can create optimal work environments where people feel understood, motivated, and able to excel to their fullest potential, strengthening overall organizational performance, cohesion, and well-being.

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