Introduction to Business - Leadership styles

Leadership styles

• There is no particular leadership style that is considered as the best, since each of them can become useful under certain conditions.
• A leader can adopt more than one style while running an organization, so that he/she can handle  effectively the various situations that arise constantly in the organization. 

Autocratic Style

• Also known as the Authoritarian Style
• Concentrates most of the power in the hands of the leader, with very little say from the staff and team members. 
• Best suited for crises, where decisions must be made quickly and without opposition from others.

Advantages

• High efficiency 

Disadvantages

• Leader will ignore the valuable suggestions of the workers and thus the opportunities to benefit the organization, and low morale among the workers over the long term.

Bureaucratic Style

• Follow the rules strictly.
• Suitable in organizations that perform routine tasks or where safety risks is a huge concern.

Advantage 

• High efficiency since the rules are spelled out clearly for the workers to follow and the leader’s main job is to enforce them.

Disadvantages

• Works poorly in situations where creativity, innovation or flexibility is highly valued.

Democratic Style

• The leader gathers the inputs and opinions of his/her team members and staff before making the final decision.
• Suitable in organizations whereby the leader and his team need to make complex decisions. 
• Must be given sufficient time to discuss the decisions involved. 

Advantages

• Workers experience high job satisfaction and therefore remain highly productive.

Disadvantage

• May not work during a crisis or an emergency since there is insufficient time for the leader to discuss the issues or decisions in depth with his/her workers. 

Laissez Faire Style

• Allow their workers complete freedom in doing their work 
• Act as a facilitator by providing support such as resources and advice whenever it is needed by his workers, but otherwise he leaves them alone.
• Only work well if all the team members are skilled, experienced and highly motivated. 

Advantages 

• Workers may develop high job satisfaction and productivity as they have been given ample freedom and power to do their work.

Disadvantages

• If the workers do not have the proper skills and experience to direct their own work, then this could lower their morale and eventually productivity.

Transformational Style

• Guide his people by inspiring and challenging them to achieve their full potential.
• Adept in inspiring enthusiasm in their workers and energetic in motivating others to move forward.
• Inspire strong devotion and loyalty from their followers.

Advantages

• Can create high motivation, strong loyalty and good productivity from the workers.

Disadvantages

• Become inattentive to tiny but important details at times. 
• Therefore, they need the support of team members who are conscientious about every aspect of the tasks involved.

No particular leadership style is considered as the best for all situations as each has its own strengths and weaknesses. Therefore, a leader should adopt the relevant style, depending on the situation at hand, so that he can lead his workers better and handle the situation effectively.