CHAPTER 1 INTRODUCTION OF LEADERSHIP STYLES

Leadership style is the manner and approach of providing direction, motivating people and

achieving objectives. It is generally a natural outcome of training, culture and background of

the leader. A leader has to choose best approach of leadership style depending on situation

because leadership style is the key for a team success. By understanding these styles and its

impact, everyone can become a more flexible and successful leader.

CHAPTER 2 IMPACT OF LEADERSHIP STYLES ON ORGANISATION

2.1 Autocratic Leadership

Autocratic leadership involves the making of managerial decisions powers without consulting

others. It is an extreme form of transactional leadership, where leader exerts high levels of

power over their employees or team members. Members are given few opportunities for

making suggestions, even if those ideas would benefit the team or for the organisation

interest. Many people dislike being treated like this. Hence, autocratic leadership often leads

to high levels of absenteeism and staff turnover. Also, a result does not benefit from the

creativity and experience of all members, hence, many benefits which could be gain via

teamwork are lost. Autocratic believe their authority is increased by frightening everyone into

higher lever of productivity. But when this approach is used wrongly, it would be vice versa.

When autocratic styles are relied upon too much by leaders to their members which are ready

to react on a more consultative type of leadership style, then it normally becomes quite

disastrous to the performance of the organization. However, this style can remain effective for

some routine and unskilled jobs where the advantages of control outweigh the disadvantages.

2.2 Participative (Democratic) Leadership

Although a democratic leader is the decision maker, they would get contribution from other
members before making the final decision. This would increase job satisfaction and also

developing communication skills among employees or team members. Employees would feel

in control of their own destiny, and so are motivated to work harder by more than just getting

a financial reward. This style gives mutual benefits to both parties as it allow members to

become part of the team and leaders to make a better decisions. According to Lewin’s study,

members in this group were less productive than of the authoritarian group, but their

contributions were of a much higher quality. It is suitable when teamwork is significant, and

where quality is more important than speed to market or productivity. This is is generally the

most effective leadership style.

2.3 Free rein Leadership

Free rein style is a form of delegating decision powers to the members. It is one in which the

manager provides little or no direction and gives employees as much freedom as possible. The

members are expected to do an analysis, evaluation and providing solutions for the problem

they have faced by their own. It can be effective if the leader monitors what is being achieved

and communicates this back to his or her team regularly. The effective leader will use the free

rein leadership style when the situation is right, but will not use this style excessively. It is

only being used on those subordinates who are highly experiences and expertise in the firms.

However, there are some barriers in this method. For instance, the leader has to bear with the

risk that resulted from the decision taken by the members. Besides, this method cannot be

overused in a company as the leader might become a free writer or de-motivated in the

process of decision making. At the same time, it will increase the pressure for those members

who are given authority in a decision making. In addition, this method might result conflicts

of interest between members in the workplace as they might misinterpret the level of authority

that have been delegated. As a result, it reduces the productivity of the firm as the co-

operative between the subordinates has been destroyed and would harm the management of
the organisation as a whole. Free rein leadership style is considered better than the

authoritarian style but not as effective as the democratic style. This leadership was the least

productive of all three groups in organisation.

2.4 Bureaucratic Leadership

Bureaucratic leaders work according to guidelines to ensure that their members follow

procedures exactly. This is a very appropriate style for work involving serious safety risks

(such as working with machinery, toxic substances or at elevated heights) or where large sums

of money are involved (such as cash-handling). In other situations, the inflexibility and high

levels of control exerted can demoralize staff, and can diminish the organization's ability to

react to changing external circumstances.

2.5 Transactional Leadership

This style of leadership starts where team members agree to totally obey their leader when

they take a job. Usually, the organization pays the team members in return for their effort and

compliance but if their work doesn’t meet the pre-determined specifications, the leader has

the right to “punish” their team members. Under this style, team members can do little to

improve their job satisfaction. The leader would give their team members some control of

their income/reward by using incentives that encourage even higher standards or greater

productivity. Transactional leadership is an effective way of managing rather than a true

leadership style as the focus is on short-term tasks. It has serious limitations for knowledge-

based or creative work, but remains as a common style in many organizations.

2.6 Transformational Leadership

Transformational leadership style is a true leader who inspires the team with a shared vision
of the future. Transformational leaders are highly visible and spend lots of time in

communicating; they don’t necessarily lead from the front, as they tend to delegate

responsibility amongst their teams. While their enthusiasm is often infectious, they need to be

supported by their members. In many organizations, both transactional and transformational

leadership are needed. Transactional leaders ensure that routine work is done reliably, while

transformational leaders look after initiatives that add new value to their products of services.

CHAPTER 3 : CONCLUSION

There is no exact way to lead or manage people that suit all types of condition or

situation. To select the most effective approach, a leader need to consider on the skill and

expertise of their members, the work involved (routine or new and creativity), the

organizational environment (stable or radically changing, conservative or adventurous), and

own preferred or natural style. A good leader will find instinctively between styles according

to the people and work they are dealing with. Succession planning is critical to the long-term

growth of a company in order to retain and attract the new leaders of tomorrow.

Organizations constantly require the direction and control by an effective leader and proper

planning for the successor who would be leading for continued success. The difficulties and

challenges that leaders face in the ever so changing environment and coping with such

monumental tasks such as interface management, change management, knowledge

management and group dynamics within projects has been difficult to balance and overcome.

An effective leader need not foster just a vigorous pursuit of a clear and compelling vision,

but also have deep personal humility and an intense professional will. Also note that most

leaders do not strictly use one or another, but are somewhere on a continuum ranging from

extremely positive to extremely negative. People who continuously work out of the negative

are bosses while those who primarily work out of the positive are considered real leaders.
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