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 2.1 IMPACT OF LEADERSHIP STYLES ON ORGANISATION

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 in this group were less productive than of the authoritarian group. In addition. but their contributions were of a much higher quality. As a result. It can be effective if the leader monitors what is being achieved and communicates this back to his or her team regularly. It is one in which the manager provides little or no direction and gives employees as much freedom as possible. Besides. 2.3 Free rein Leadership Free rein style is a form of delegating decision powers to the members. 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. this method might result conflicts of interest between members in the workplace as they might misinterpret the level of authority that have been delegated. For instance.members before making the final decision. This would increase job satisfaction and also developing communication skills among employees or team members. but will not use this style excessively. The members are expected to do an analysis. At the same time. it will increase the pressure for those members who are given authority in a decision making. This is is generally the most effective leadership style. and so are motivated to work harder by more than just getting a financial reward. However. It is suitable when teamwork is significant. The effective leader will use the free rein leadership style when the situation is right. it reduces the productivity of the firm as the cooperative between the subordinates has been destroyed and would harm the management of . the leader has to bear with the risk that resulted from the decision taken by the members. there are some barriers in this method. Employees would feel in control of their own destiny. and where quality is more important than speed to market or productivity. According to Lewin’s study. evaluation and providing solutions for the problem they have faced by their own. 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. It is only being used on those subordinates who are highly experiences and expertise in the firms.

but remains as a common style in many organizations.the organisation as a whole. In other situations. the inflexibility and high levels of control exerted can demoralize staff.6 Transformational Leadership Transformational leadership style is a true leader who inspires the team with a shared vision . Usually. toxic substances or at elevated heights) or where large sums of money are involved (such as cash-handling).5 Transactional Leadership This style of leadership starts where team members agree to totally obey their leader when they take a job.4 Bureaucratic Leadership Bureaucratic leaders work according to guidelines to ensure that their members follow procedures exactly. 2. the leader has the right to “punish” their team members. and can diminish the organization's ability to react to changing external circumstances. This leadership was the least productive of all three groups in organisation. Free rein leadership style is considered better than the authoritarian style but not as effective as the democratic style. Under this style. 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 would give their team members some control of their income/reward by using incentives that encourage even higher standards or greater productivity. team members can do little to improve their job satisfaction. This is a very appropriate style for work involving serious safety risks (such as working with machinery. 2. 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 knowledgebased or creative work. 2.

while transformational leaders look after initiatives that add new value to their products of services. knowledge management and group dynamics within projects has been difficult to balance and overcome. they need to be supported by their members. People who continuously work out of the negative are bosses while those who primarily work out of the positive are considered real leaders. Succession planning is critical to the long-term growth of a company in order to retain and attract the new leaders of tomorrow. The difficulties and challenges that leaders face in the ever so changing environment and coping with such monumental tasks such as interface management. An effective leader need not foster just a vigorous pursuit of a clear and compelling vision. they don’t necessarily lead from the front.of the future. change management. . the work involved (routine or new and creativity). but also have deep personal humility and an intense professional will. the organizational environment (stable or radically changing. and own preferred or natural style. To select the most effective approach. Transformational leaders are highly visible and spend lots of time in communicating. both transactional and transformational leadership are needed. In many organizations. Transactional leaders ensure that routine work is done reliably. a leader need to consider on the skill and expertise of their members. conservative or adventurous). Also note that most leaders do not strictly use one or another. as they tend to delegate responsibility amongst their teams. but are somewhere on a continuum ranging from extremely positive to extremely negative. While their enthusiasm is often infectious. Organizations constantly require the direction and control by an effective leader and proper planning for the successor who would be leading for continued success. CHAPTER 3 : CONCLUSION There is no exact way to lead or manage people that suit all types of condition or situation. A good leader will find instinctively between styles according to the people and work they are dealing with.

http://www.leadership-with-you. South-Western Cengage Learning L. United States. 2010. http://www. N. India. K.legacee. Robert.html [17th Sept 2010] Leadership With You. Electronic source. http://www. United Kingdom.Routledge N. FK Publications William United States . The search for leadership: An organisational perspective. William. Mc Graw Hills John Organisational Learning and Effectiveness. Singla. 8th Edition. 2010.leadership-expert. Electronic Source. 2010.CHAPTER 4: REFERENCES G. Leadership Styles – Autocratic vs Democratic vs Bureaucratic. 2009. 2009. Understanding Business. 4th Edition. 2010. 2002.html [17th Sept 2010] . Business Organisation and [16th Sept 2010] Legacee . Triarchy Press Limited Leadership Community. Leadership. Theories and Types of Leadership. 2008. Electronic Source. United States. Types of Leadership Styles.

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