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Bachelor Thesis from the year 2023 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of Hamburg (Wirtschafts- und Sozialwissenschaften), language: English, abstract: This bachelor thesis delves into the use of humor as a leadership tool, analyzing its benefits and drawbacks. Through a comprehensive literature review, it explores the impacts of positive and negative humor styles in leadership, providing insights into how humor can be effectively leveraged to enhance work environments and the risks associated with its improper use. Humor as a leadership tool is increasingly recognized for its significance in the modern workplace. This thesis offers an in-depth look into the role of humor in enhancing leadership qualities. Based on an extensive literature review, it aims to understand how humor can positively contribute to stress reduction, group cohesion enhancement, communication improvement, and the promotion of creativity and trust. Simultaneously, it addresses the potential risks associated with negative humor, such as increased stress and decreased well-being. The thesis underscores that the mindful application of humor as a leadership tool requires a delicate balance to maximize its positive effects and avoid adverse outcomes.