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Leadership The way in which managers deal with workers is known as their leadership style. A good definition of leadership would as follows: ‘Where a person influences and directs the performance of a group of employees in achieving the goals of the organisation’ Philip Allan Publishers © 2015 Leadership styles Although the way managers manage will vary from individual to individual, there are three main leadership styles that are identified in business: • authoritarian leadership • democratic/participative leadership • laissez-faire leadership Philip Allan Publishers © 2015 Authoritarian leadership Also known as autocratic leaders, they are strict and tell workers what to do. They have a high level of control: they make all the decisions themselves and expect no input from workers. Pros • Quicker decision-making process • Workers are closely supervised so less mistakes. Cons • Employee motivation can be low. • Labour turnover can be high. • Less creativity due to lack of worker input. Philip Allan Publishers © 2015 Democratic leadership Also known as participative leadership, where workers will contribute in the decision-making process. There is considerable scope for involvement and participation. Pros • Worker involvement encouraged, which can lead to better decisions. • Motivation is high and labour turnover low. Cons • Consultation with staff can be time consuming. • Should staff be involved in some areas of the business e.g. sensitive or more complex issues? Philip Allan Publishers © 2015 Laissez-faire leadership These leaders leave their colleagues to get on with their work without supervision or control. The leader will often set boundaries and a given task and not monitor until it is complete. Pros • Employee motivation is high. • Workers are often most creative with this form of management. Cons • Manager control is required at times and this lack of involvement can lead to mistakes or failed projects. Philip Allan Publishers © 2015
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