Types of Leadership Styles (SL IB Business Management)

• Leadership is about having a vision, sharing that vision with others and providing direction
• Management is the day-to-day organisation of the business, its resources and its staffing
    

The different characteristics of leaders and managers

 

Key differences between leadership and management

• Vision vs. Execution
  Leadership focuses on creating a vision, setting direction, and inspiring others to follow
  Management focuses on executing plans, organising resources and ensuring tasks are completed on time
  
  
• Influence vs. Control
  Leadership focuses on influencing others to achieve a common goal by inspiring and motivating
  Management focuses on controlling resources and processes to ensure that objectives are met
  
  
• People vs. Processes
  Leadership focuses on people, their needs, and their motivation
  Management focuses on processes, structures and systems
  
  
• Long-term vs. Short-term
  Leadership focuses on the long-term vision and strategy
  Management focuses on short-term goals and targets
  
  
• Creativity vs. Efficiency
  Leadership encourages creativity and innovation
  Management focuses more on efficiency and productivity

• Leadership styles are different approaches to leading and managing a team or business
• They reflect the behaviours and attitudes of a leader towards their team members and influence the organisational culture, productivity and performance
• A successful leader will be able to use a variety of leadership styles depending on the situation to achieve the best results for their business
• Four common leadership styles include:
   

Four commonly used types of leadership styles
 

• The choice of leadership style can be influenced by the business circumstances, as well as the nature and size of the business

• An autocratic leader is a type of leader who holds absolute power and authority over a business
  • The leader makes decisions without seeking input or agreement from others
  • They typically expect strict obedience and compliance from their subordinates
    
    
• Autocratic leaders often have complete control over the decision-making process
  • They set the direction and goals of the business
  • They do not usually consider the opinions, ideas, or expertise of their team members
  • Their decisions are generally not open to discussion or debate
    
    

Situations when Autocratic Leadership is Especially Effective

Situation	Explanation
Crisis situations	In times of immediate crisis such as natural disasters or military conflicts quick and decisive action is often required Autocratic leaders can make swift decisions without the need for lengthy discussions which can be crucial in emergency situations
Hierarchical organisations	Organisations with highly structured hierarchies may benefit from autocratic leadership for the sake of coordination and efficiency In military units, for example, commanders often need to give clear and direct orders that subordinates must follow without question
Time-sensitive projects	Autocratic leadership can help speed up decision-making In businesses with strict deadlines such as construction or event planning an autocratic leader can ensure that tasks are completed promptly by providing specific instructions and minimising time spent on discussion
Inexperienced or unmotivated teams	Autocratic leadership can be effective when working with teams lacking the necessary skills, experience or motivation By providing clear direction and close supervision an autocratic leader can guide the team towards achieving their goals more efficiently
Maintaining order and discipline	In businesses where strict discipline and adherence to rules are important such as energy generation autocratic leadership may be necessary to ensure compliance and maintain order

 

• Whilst autocratic leadership may be suitable in certain situations it can also have drawbacks including 

• • Reduced employee morale as workers have no input into decision-making
  • Limited creativity as employees are required to follow strict instructions and are closely monitored
  • Lack of input from team members restricts an important source of problem-solving ideas and innovation

• Democratic leaders actively involve employees in the decision-making process and encourage discussion, though they have the final say
  • Consultation, collaboration, delegation and teamwork are common features of democratic leadership
    
    
• This leadership style is most effective in organisations with skilled, experienced and creative employees
  
  

The Advantages and Disadvantages of Democratic Leadership

Advantages

Disadvantages

Democratic leadership encourages participation and involvement from employees in decision-making processes This involvement can lead to higher levels of employee engagement and job satisfaction as individuals feel valued and empowered when their opinions and ideas are considered Democratic leadership can encourage creativity and innovation within a business Employees are more likely to share ideas and think outside the box when they have a say in decision-making Democratic leadership can lead to more comprehensive problem-solving and decision-making By considering a range of viewpoints, leaders can make more informed choices and avoid potential pitfalls

Decisions are made through consensus or majority agreement which can be a time-consuming process Engaging all team members in discussions, collecting input and reaching agreement can slow down decision-making  Conflicts and disagreements may arise when different views are sought Resolving these conflicts can be challenging and time-consuming and leaders need to possess strong conflict resolution skills to ensure that disagreements do not escalate  Democratic leadership may result in compromise on the quality of decisions Popular opinions may overshadow expert knowledge and decisions may be watered down or influenced by the desire for agreement rather than the best outcome

• Laissez-faire leaders play a minimal role in managing their business team
  
  
• Leaders provide little guidance, direction, or supervision to employees, allowing them significant autonomy and freedom in making decisions and completing tasks
  
  
• Laissez-faire leadership is most appropriate where leaders are working with a highly skilled and self-motivated team that requires minimal supervision
    

Advantages and Disadvantages of Laissez-faire Leadership

Advantages

Disadvantages

Laissez-faire leadership can encourage creativity and innovation within the business By giving employees the freedom to explore ideas and make decisions independently it allows for diverse perspectives and fresh approaches to problem-solving Employees are empowered because they have autonomy and ownership over their work This can enhance job satisfaction, motivation, and a sense of responsibility among team members as they feel trusted and valued Laissez-faire leadership allows for greater flexibility in adapting to changing circumstances Employees can quickly respond to challenges and make decisions based on their expertise and knowledge

The absence of direct guidance and supervision could lead to some employees struggling with decision-making or needing more structure and direction to perform their job effectively This can lead to inefficiency and a lack of coordination within the team and ultimately a decrease in productivity and effectiveness, as individuals may struggle to prioritise tasks or make informed decisions Without clear guidelines or standards there is a risk of inconsistency in the quality and outcomes of work Different employees may have varying approaches, leading to a lack of cohesion and potential conflicts in the team Without regular oversight it is likely to be challenging for leaders to monitor progress, identify issues, and ensure that goals are being met This can lead to decreased productivity and difficulties in holding individuals accountable

• Hersey and Blanchard's Situational Leadership Model suggests there is no one-size-fits-all approach to leading a business organisation and effective leadership depends on adapting leadership style to the specific situation and the needs of the employees being led
   
• Leaders must assess the readiness of employees to perform a particular task or achieve a specific goal
  • Readiness is determined by two factors
    • competence (knowledge, skills, and experience)
    • commitment (motivation and confidence)
       
• Based on this assessment, leaders can adopt different leadership styles to match the situation
   

Hersey & Blanchard's situational leadership model
 

• The situational leadership model emphasises that effective leaders should be flexible and able to adapt their leadership style based on the needs of their team members
   
• It encourages leaders to consider the situation carefully and assess the readiness of their followers before adopting the most appropriate leadership approach to maximise performance and development