Exploring Types of Leadership Styles in Business

Introduction

Leadership styles are a crucial aspect of the success of any business. Within any business organization, leadership transpires and influences its members, empowering them to facilitate growth. Nowadays, using different leadership styles plays a crucial role in ensuring that the company achieves its objectives and goals. As such, authoritarian, democratic, and transformational leadership styles are unique in businesses since they focus on development.

Authoritarian Leadership Style

The authoritarian leadership style in businesses sets standards that rely on authority as a strength. This style is not interested in considering the process of decision-making that encompasses all members of the organization. Instead, business leaders with an authoritarian background bear the burden of leading without the influence of external and internal forces.¹ Employees working under authoritarian leadership are not expected to question decisions, but they have to follow orders from authority. Moreover, authoritarian leaders focus on improving productivity and efficiency by tapping into the work ethics of everyone based on the provided directions.² In turn, the absence of a large pool of ideas can cripple the business when development targets are overlooked. Hence, authoritarian leadership is a style that thrives in a sector where an individual aims to implement a specific objective.

1. Dat Hung Ho, Jue Wang, and Hak-Seon Kim, “Exploring Leadership Style and Employee Attitude Through Cluster and Sentiment Analyses of In-Depth Interviews of Employees,” Administrative Sciences 13, no. 3 (2023): 3, https://doi.org/10.3390/admsci13030091.

2. Ho, Wang, and Kim, “Exploring Leadership Style and Employee,” 7.

Exploring Types of Leadership Styles in Business

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Democratic Leadership Style

Businesses under democratic leadership encourage employees to exchange ideas freely. Democratic leaders acknowledge the value and impact that other members contribute to moving the business forward. In this case, leaders expect members to actively participate through groups that brainstorm ideas to solve problems and emphasize the importance of expertise from people.³ These are also significant attributes that democratic leaders consider when recruiting individuals who will share the responsibilities and freedom of leadership. Besides, the democratic leadership style is espoused in team unity, fostering an environment that appreciates efforts from employees to achieve success.⁴ Ultimately, the business will have an improved environment with low employee turnover. Therefore, the democratic leadership style recognizes other people’s efforts to achieve success.

3. Katarzyna Piwowar-Sulej and Qaisar Iqbal, “Leadership Styles and Sustainable Performance: A Systematic Literature Review,” Journal of Cleaner Production 382, no. 134600 (2023): 3, https://doi.org/10.1016/j.jclepro.2022.134600.

4. Piwowar-Sulej and Iqbal, “Leadership Styles and Sustainable Performance,” 5.

Transformational Leadership Style

All businesses focus on establishing a foundation to facilitate innovation by building leaders capable of transforming the workplace environment. Transformational leadership is a style that encapsulates attributes of leaders driven to control, communicate, and share a vision with the group. The individual leading a transformational change should be able to create unity, and energy, instill passion, and develop bonds to keep employees focused on the big picture.⁵ Businesses enshrined in transformational leadership embrace and emphasize change as they strive to inspire employees to achieve their objectives by unveiling their potential. In organizations with transformational leadership, leaders focus on the future and the people who can implement ideas suggested during the development phases.⁶ Transformational leadership ensures that employees are comfortable and rely on their abilities. As a result, leaders engage all employees and embrace change to ensure the growth of the business.

5. Joana Costa, Mariana Pádua, and António Carrizo Moreira, “Leadership Styles and Innovation Management: What Is the Role of Human Capital,” Administrative Sciences 13, no. 2 (2023): 4, https://doi.org/10.3390/admsci13020047.

6. Costa, Pádua, and Moreira, “Leadership Styles and Innovation,” 8.

Conclusion

Businesses with effective leadership styles tailored to meet goals and objectives can thrive. Adopting a specific leadership style that fits a business idea and culture is necessary for employees can relate to and accept it. Many businesses use authoritarian, democratic, and transformational leadership styles as core management strategies that leaders can adopt. They serve the purpose of driving the business forward and implementing the expected vision. Thus, businesses should focus on leaders capable of achieving success by adapting to a particular style that enhances employee performance.

Bibliography

Costa, Joana, Mariana Pádua, and António Carrizo Moreira. “Leadership Styles and Innovation Management: What Is the Role of Human Capital?” Administrative Sciences 13, no. 2 (2023): 1-21. https://doi.org/10.3390/admsci13020047.

Ho, Dat Hung, Jue Wang, and Hak-Seon Kim. “Exploring Leadership Style and Employee Attitude Through Cluster and Sentiment Analyses of In-Depth Interviews of Employees.” Administrative Sciences 13, no. 3 (2023): 1-13. https://doi.org/10.3390/admsci13030091.

Piwowar-Sulej, Katarzyna, and Qaisar Iqbal. “Leadership Styles and Sustainable Performance: A Systematic Literature Review.” Journal of Cleaner Production 382, no. 134600 (2023): 1-14. https://doi.org/10.1016/j.jclepro.2022.134600.