5.1.4
Management Style
Types of Leadership
Types of Leadership
Businesses are diverse in their size, structure and approach. One management or leadership approach, though successful in one business, may fail in another.


Factors which influence styles of management and leadership
Factors which influence styles of management and leadership
- The external environment can affect the type of management or leadership style which is appropriate for a business.
- The culture of a business can affect the type of management or leadership style which is best suited to the business’ needs.
- For example, in businesses with a very clear and well-defined culture, a change of leadership style may be difficult to introduce without resistance from the majority of employees.


Factors which influence styles of management and leadership
Factors which influence styles of management and leadership
- The skill level of the workforce can influence the type of management or leadership style used as managers may, or may not, want to involve employees in the decision making process.
- For example, managers and leaders often value the knowledge of skilled and qualified staff but less so when staff are unskilled or inexperienced.


Autocratic leadership
Autocratic leadership
- Autocratic leadership refers to an approach by leaders or managers to keep control of decision making and ensure that employees are closely supervised.
- If a business has a largely unskilled workforce, a manager or leader may wish to maintain decision making powers and therefore adopt an autocratic approach.


Democratic leadership
Democratic leadership
- Democratic leadership refers to an approach by leaders or managers to discuss and consult with employees, delegate decision making authority and empower employees through their involvement.
- For example, in businesses which employee highly skilled and highly qualified employees, such as universities, Google and Microsoft, a manager or leader may decide that the contributions of such staff could be highly valuable to the business; here, a democratic approach may be suitable so that employees can contribute their expertise to the decision making process.


Laissez-faire leadership
Laissez-faire leadership
- This is a manager which largely leaves subordinates to their own devices.
- The manager established a broad objective but does not get involved in the decision process.
- Communication is typically a problem. This is because the manager is not too involved and may not respond to messages. As a result, motivation may be low at times as employees feel directionless.
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
Jump to other topics
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
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