LECTURE 5:

STYLES OF LEADERSHIP
Lecturer: Bui Le Thuy Trang
2

LECTURE CONTENTS

5.1. Authoritarian (autocratic) style

5.2. Democratic style

5.3. Laissez-faire (genuine) style

3

5.1.
Authoritarian (autocratic)
style
 Understanding the different contexts of
4

authoritarian leadership
Rensis Likert’s study of leadership
▸ According to Likert’s findings, the authoritative leadership can either
manifest as an exploitative or benevolent.

▸ In the exploitative style, the leader takes control because lack of trust in
the subordinates.

▸ In order to achieve goals, the leader assumes responsibility of guiding

the subordinates towards the objectives.

▸ The leader motivates the subordinates to act solely through a

punishment structure.
 Understanding the different contexts of
5

authoritarian leadership
Rensis Likert’s study of leadership
▸ In the benevolent style, there is a bit more trust in the subordinates,
with the motivation stemming from rewards rather than punishment.

▸ Instead of getting subordinates to complete tasks through the fear of

being fired, for example, the leader is using positive rewards.

▸ Satisfaction under the benevolent authoritative style remained

moderate and production was measured to be good.

▸ Studies conducted by Hay and McBer have later discovered the

authoritative leader to have the most positive impact on productivity
and job satisfaction.
 Understanding the different contexts of
6

authoritarian leadership
Douglas McGregor and Theory X
▸ According to the Theory X, subordinates are naturally unmotivated.

▸ Work is not a pleasant thing for the subordinates and it isn’t something they are actively interested in pursuing.

▸ The authoritarian model, where decision-making is centralized in the hands of the leader and worker supervision is
enhanced, works the best in producing results.

▸ For the Theory X type of subordinate, the leader’s ability to influence and motivate is key.
 Understanding the different contexts of
7

authoritarian leadership
Douglas McGregor and Theory X
Two spectrums of the authoritarian model: Theory X can manifest as a ‘hard’ and ‘soft’ approach.

▸ Under the hard approach, the supervision is stricter, with the focus being on punishments rather than rewards.

▸ The soft approach showcases more flexibility in terms of rules and regulations. The workers are motivated through
positive reward rather than intimidation.

▸ McGregor argues that for the leadership style to work the most efficiently, the leader must follow a balanced approach,
with neither too hard nor soft implementation of the style.
8

Core characteristics of authoritarian leadership

Decisions are made by the leader and without the participation or input of the subordinates.
▸ Under the framework, the power of decision-making rests solely in the hands of the leader.
▸ Depending on the leader’s style, they can involve the subordinates in a consultative role, although this is
not specifically characteristic of the style.

▸ An authoritarian model rests on the assumption that subordinates are removed from the decision
making, with the leader being able to make decisions on their own.
9

Core characteristics of authoritarian leadership

The leader presides over the policies and processes.

▸ The style involves a lot of micromanagement, as the leader is not just making the decisions, but also
setting out the different processes.

▸ The framework generally doesn’t provide the subordinates much room to figure out their way to reach
the goals.

▸ Instead, the leader outlines the different procedures and policies all subordinates must adhere to.
▸ This provides a clear framework for subordinates to operate in and the leader’s role becomes
supervisory.
10

Core characteristics of authoritarian leadership

The subordinates are directly supervised and monitored by the leader.

▸ As eluded in the above point, the leader’s role is to ensure subordinates follow the guidelines effectively.
▸ Unlike in certain other leadership styles, the leader doesn’t walk away and return once the process is
complete, but stays actively involved with the tasks.

▸ The monitoring ensures the leader is able to use the reward and punishment structures efficiently, as
well to ensure the team is not slipping further away from the vision.
11

The characteristics of an authoritarian leader

12

How to be an authoritarian leader

• Gaining enough knowledge of the industry, the company and the task at hand
Step 1

• Build relationships where the rules and roles are clear

Step 2

• Be consistent with your approach to rewards and punishments

Step 3

• Outline clear guidelines for task completion and behavior

Step 4
 Advantages and disadvantages of authoritarian
13
leadership
Advantages
• Clarity in the structure
• Can help boost productivity
• Can akso lead to fewer
mistakes
• Make decision-making clearer.
Disadvantages
• Lack of commitment that
subordinates might feel
• Can result in resentment
• Creativity of the organization
can diminish
• Reliant on the expertise and
knowledge of the leader
• Lack of feedback
• Higher churn rate.
14

Vladimir Putin
▸ Putin’s authoritarian style stems from his background, as he is a former KGB
agent.

▸ Military organizations often benefit from this type of clear hierarchy model
and it’s apparent, Putin has adopted a similar style in his political career.

▸ For Putin, the vision is to restore Russian hegemony on the global stage and
to create a country that people can look up to. He has been able to
concentrate much of the country’s decision-making into his own hands.

▸ Although the nation has democratic elections, many believe the decisions the
parliament makes come directly from Putin’s desk.
15

Larry Ellison
▸ The former chief executive of Oracle.

▸ Ellison has a reputation of being a bit of a swashbuckler and a risk-taker.

▸ He’s also a leader who has always had a clear vision of where he wants to be
and he generally has wanted to be in control.

▸ Oracle’s success in controlling the Internet infrastructure business.

▸ Two big executives quit because Ellison didn’t want to let go of his leadership
position.

▸ Oracle used to focus only on organic growth, because Ellison didn’t believe
in the usability of acquisitions. But he later adjusted his vision on the topic.
16

Steve Jobs
▸ https://www.youtube.com/watch?v=Yj
oWwN4uVnc&t=13s
17

5.2.
Democratic style
“
Democratic leadership, also known as participative leadership or shared
leadership, is a type of leadership style in which members of the group take a
more participative role in the decision-making process.

(Amanchukwu RN, Nwachukwu OP, Stanley GJ, 2015)

19

Characteristics of democratic leadership

▸ Group members are encouraged to share ideas and opinions, even though the leader retains the final
say over decisions.

▸ Members of the group feel more engaged in the process.

▸ Creativity is encouraged and rewarded.
20

The characteristics of a democratic leader

 Advantages and disadvantages of authoritarian
21

leadership

Advantages Disadvantages

• More ideas and creative • Communication failures

solutions • Poor decision-making by
• Group member commitment unskilled groups
• High productivity. • Minority or individual opinions
overridden.
22

Best Settings for Democratic Leadership

▸ Democratic leadership works best in situations where group members are skilled and eager to share
their knowledge.

▸ It is also important to have plenty of time to allow people to contribute, develop a plan, and then vote
on the best course of action.
23

Tim Cook
▸ Apple CEO.

▸ Instead of simply continuing the legacy of Jobs' autocratic leadership style,

Cook has played to his strengths and placed emphasis on advancing
cooperation among Apple's arsenal of talent.

▸ Tim Cook encourages consensus building among high-level employees.

▸ Cook uses constant questioning to keep employees sharp.

24

5.3.
Laissez-faire (genuine) style
“
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 group members.

(Anbazhagan S, Kotur BR, 2014)

26

Characteristics of Laissez-Faire Leadership

▸ Hands-off approach
▸ Leaders provide all training and support
▸ Decisions are left to employees
▸ Comfortable with mistakes
▸ Accountability falls to the leader.
27

Characteristics of Laissez-Faire Leadership

▸ While "laissez-faire" implies a completely hands-off approach, many leaders still remain open and
available to group members for consultation and feedback.

▸ They might provide direction at the beginning of a project, but then allow group members to do their
jobs with little oversight.

▸ This approach to leadership requires a great deal of trust.

▸ Leaders need to feel confident that the members of their group possess the skills, knowledge, and
follow-through to complete a project without being micromanaged.
28

Benefits of Laissez-Faire Leadership

It encourages personal growth

• Because leaders are so hands-off in their approach, employees have a chance to be hands-on.
• This leadership style creates an environment that facilitates growth and development.

It encourages innovation
• The freedom given to employees can encourage creativity and innovation.

It allows for faster decision-making

• Since there is no micromanagement, employees under laissez-faire leadership have the autonomy to
make their own decisions.
• They are able to make quick decisions without waiting weeks for an approval process.
29

Benefits of Laissez-Faire Leadership

This style is particularly effective in

situations where group members are
more knowledgeable than the group's
leader. (Al-Malki M, Juan W, 2018)
30

Disadvantages of Laissez-Faire Leadership

Lack of role clarity

•Since team members receive little to no guidance, they might not really be sure about their role within the group and
what they are supposed to be doing with their time.

Poor involvement with the group

•Since the leader seems unconcerned with what is happening, followers sometimes pick up on this and express less
care and concern for the project.
Low accountability
•Some leaders take advantage of this style as a way to avoid responsibility for the group's failures.
•When goals are not met, the leader can then blame members of the team for not completing tasks or living up to
expectations.

Passivity
•At its worst, laissez-faire leadership represents passivity or even an outright avoidance of true leadership.
•In such cases, these leaders do nothing to try to motivate followers, don't recognize the efforts of team members,
and make no attempts at involvement with the group.
31

Strengths of Laissez-Faire Leaders

If you have a more laissez-faire approach to leadership, there are areas and situations where you might
tend to do better:

▸ In creative fields: Working in a creative field where people tend to be highly motivated, skilled,
creative, and dedicated to their work can be conducive to obtaining good results with this style.

▸ When working with self-managed teams: Laissez-faire leaders typically excel at providing
information and background at the start of a project, which can be particularly useful for self-
managed teams.

▸ During the early stages of a project: By giving team members all that they need at the outset of an
assignment, they will then have the knowledge they need to complete the task as directed.
32

Warren Buffett
▸ Chairman and CEO of Berkshire Hathaway

▸ In Buffett’s case, this oft-maligned leadership style has had positive

effects; by allowing his managers full autonomy, he has created an
atmosphere where his employees feel confident and motivated by their
extreme latitude (Stern).

▸ In Berkshire Hathaway’s 2010 Annual Report, Buffett states, ”We tend to

let our many subsidiaries operate on their own, without our supervising
and monitoring them to any degree. Most managers use the
independence we grant them magnificently, by maintaining an owner-
oriented attitude.”
33

Discussion 5:
When to avoid laissez-faire (genuine) style?
34

When to avoid laissez-faire (genuine) style?

▸ Situations where efficiency and high productivity are the main concerns.
▸ Situations that require great oversight, precision, and attention to detail.
▸ People who aren't good at setting deadlines or managing projects.
35
In class activity 2 : What is the leadership style of….?

Name Description Leadership style

Bill Gates Co-founder of Microsoft Corporation

Truong Gia Binh Chairman and CEO of FPT

Sergey Brin and Co-founders of Google

Larry Page

Abraham Lincoln 16th president of the United States from 1861

until his assassination in 1865

Jeff Bezos Founder and executive chairman of Amazon

Napoleon Bonaparte French military leader and emperor who

conquered much of Europe in the early 19th
century.
36
Discussion: What is the leadership style of….?

Name Description Leadership style

Bill Gates Co-founder of Microsoft Corporation Combination of all 3 styles

Truong Gia Binh Chairman and CEO of FPT Democratic

Sergey Brin and Co-founders of Google Democratic

Larry Page

Abraham Lincoln 16th president of the United States from 1861 Autocratic + Democratic
until his assassination in 1865

Jeff Bezos Founder and executive chairman of Amazon Autocratic

Napoleon Bonaparte French military leader and emperor who Autocratic

conquered much of Europe in the early 19th
century.