MAN: Leaders exercised their authority in a variety of different ways. The way that leaders choose to show their power and authority is described as a leadership style. Leadership styles relate to the way that a leader behaves and the way that the functions of leadership are carried out.
First up, there is democratic leadership. This is a type of leadership style in which members of the group are involved in the decision-making process. An example of this is allowing employees to vote on decisions that are being made.
There are many advantages of democratic leadership, such as employees being better prepared for a promotion because they have already had to make harder decisions, as well as this, employees are more able to accept changes within the organization, as they are aware of what changes are being made due to being involved in the decision-making process. Some of the disadvantages of democratic leadership include issues like the time it may take for a decision to be made or that a strong leader is often needed to lead a discussion between staff members so that there is clear communication of ideas.
Next up is autocratic leadership, also known as authoritarian leadership, which is a leadership style where one person has control over all decisions and where there is little input from group members. Autocratic leaders typically make choices based on their ideas and judgments and rarely accept advice from employees in the organization.
Some of the advantages of autocratic leadership styles include that decisions can be made quickly due to managers making all the decisions, as well as this employees have clear instructions on what needs to be done and the requirements needed, which can improve efficiency within the business. Some of the disadvantages of autocratic leadership include issues, such as employees creativity and ideas being ignored, as well as this employees may start to feel demotivated because they are not getting to share their ideas or take on any responsibility.
Lastly, there is laissez-faire leadership, also known as delegative leadership is a type of leadership style in which leaders are hands off and allow group members to make the decisions. Researchers have found that this is generally the leadership style that leads to the lowest productivity among employees and is often ineffective. Some of the advantages of laissez-faire leadership are that employees are likely to feel empowered and motivated by the responsibility being given to them, as well as this, it increases the chances of innovation if employees feel confident and are not being micromanaged.
Some of the disadvantages of laissez-faire leadership include issues, such as employees feeling under pressure if they are not being supported when having to make important decisions. This often leads to employees feeling demotivated and stressed, as well as this, it may not be clear who is responsible, which could lead to a decision not being made.
You might ask, which leadership style is the most effective? This answer usually depends on the type of business. For example, a business that is trying to survive and needs to make quick decisions is likely to need an autocratic leader.
However, a lot of businesses are moving towards a more democratic approach to leadership. This is due to increased competition in most industries, meaning that businesses need to be innovative when making key decisions. I hope this has been helpful. Please subscribe for more Business Studies videos.