Leadership has a direct cause and effect relationship to organizations and their success. Leaders determine values, culture, tolerance for change and employee motivation. They form institutional strategies, including their implementation and effectiveness. leadership style affects the organization by affecting morale, productivity, speed of decision making and employee metrics.
Successful leaders carefully analyze problems, assess the skill level of subordinates, consider alternatives and make an informed decision. By choosing the most appropriate leadership style for the situation, an effective leader provides a lasting impact. The participatory leadership style, also known as democratic leadership style, is one in which business owners seek and encourage suggestions, ideas and input from their staff before making decisions. Participatory leaders take action only after soliciting the views of management and grassroots workers.
One important effect of this leadership style is that employees feel valued and their feedback matters. This can foster a more cohesive team environment where workers do not feel isolated from management and have more “skin” in the game, which increases acceptance. Participatory leadership or democratic leadership style is often much better for employee morale and creativity. Here, business leaders and managers seek and encourage the opinion of their staff before making decisions.
Leaders can reinforce the values of the organization by helping their people grow and develop through goal setting, opportunities and recognition. Elevate employees through regular one-to-one and two-way frequent feedback. When employees have an open and ongoing dialogue about their work, their trust in their leader is strengthened. Organizationally, participatory leadership can be the ideal choice for many small businesses, because everyone feels they have been given some degree of authority in everyday work processes.
Authoritarian style creates a clear separation between you as a business owner and your employees. Leaders can be most effective when they understand that they can employ a unique combination of styles to use in a variety of workplace scenarios. A leader who employs the laissez-faire management style empowers employees and trusts that they have the right skills, knowledge and judgment to execute objectives without much direct oversight. Effective leadership shapes employee experience, commitment and wellbeing, all of which are critical to a thriving work culture.
Because collaboration in the workplace can have many positive benefits, including greater innovation and breaking down organizational silos, a collaborative management style can be invaluable in helping build a high-performing culture and a workforce that embraces change. The leadership style you choose to implement can have a profound impact on the success or failure of your small business. A management style of coaching focuses more on employee learning and creating opportunities for people to realize their full potential. While one type of management style may work better in certain work environments than in others, managers often rely on a combination of styles, depending on the situation and circumstances.
An authoritarian management style is one that is based on an individual's position of authority in the organizational structure. Traditional leadership styles and types of leadership culture are not resonating with younger generations, who thrive on further growth and training. Depending on workplace culture, company goals and employee roles and experience, using different combinations of management styles can be effective at different times. Many companies in different industries have begun to focus more on transformative leadership to support an era of “digital transformation” or shift to a more agile way of working.
If you own a company with young employees, this style can be very effective because it provides direction, assigns specific tasks, and sets standards that are clear and actionable. However, one disadvantage of leadership style is that decisions can sometimes stall because leaders want to make a decision that can please everyone. . .