What is leadership?
Leadership is the art of motivating a group of people to act towards achieving a common goal. In a business setting, this can mean directing workers and colleagues with a strategy to meet the company’s needs.
Information on Leadership | CIPD
There are many styles of leadership but here is a simple guide to three; autocratic, democratic and laissez-faire.
1. The autocratic business leader
The autocratic leader understands the strength of authority. Autocratic leaders are not interested in opening up the decision-making process to the entire group. Instead, they choose to bear the leadership completely alone. They expect those who fall under their authority to follow orders.
The main advantage of an autocratic leader is streamlined work that improves efficiency and productivity. They create firm deadlines and have a very clear set of expectations. This is ideal in a time of crisis or when last-minute decisions are needed. This leadership style allows for fewer misunderstandings as directions are passed down.
The disadvantages of an autocratic business leader is they often have a limited perspective. Given that they only draw from their own ideas and experience, any input from other members of the team will likely go unspoken. Those who work under this leadership style sometimes end up resenting their manager. They feel undervalued due to limited recognition of their contributions. Additionally, this leader is more likely to micromanage their team. Autocratic leaders tend to find themselves at the center of low work morale and high employee turnover.
The autocratic style is best used during a crisis when a leader is most valuable. You need someone who takes control to make quick and difficult decisions to potentially reduce damage. During times of emergency, teams appreciate a strong and decisive leader. Autocratic leadership may also come in handy when team correction is necessary. After the crisis has passed, it is generally beneficial to switch styles.
2. The democratic business leader
A democratic leader encourages the free exchange of ideas throughout the team. All members have a valued voice and the leader acts as a spokesperson or facilitator. Democratic leaders rely on the participation of every member of the group. They emphasise the value and expertise each member brings to the table. Every team member shares the freedoms and responsibilities of leadership.
An advantage of democratic leadership is the boundless creativity of the entire group that allows for open discussion of issues and solutions. Team unity generally grows as a result of democratic leadership. This environment can make an employee feel appreciated, accomplished, and important to the success of the organisation. Common office politics such as gossiping, cliques, and manipulation become much less prevalent. The end result is an improved work environment and lower employee turnover: 63% of employees who are recognised for their work are less likely to job hunt.
Under democratic leadership, deliberation can be an unaffordable luxury. If decisions need to be made quickly, a democratic team may be unable to adapt and function under the stress. Democratic leadership can result in a lack of clarity around team members’ roles and responsibilities, and difficulty identifying employees who aren’t carrying their weight.
This is the most effective method for day-to-day work as it allows the group to take part in decision-making. This gives teams a feeling of ownership over projects, deliverables, and results. Many business leaders identify the democratic leadership style as their go-to style, but this technique can be less effective during times of crisis.
3. The laissez-faire business leader
Laissez-faire leaders are the hands-off type. They assign tasks and give general direction but they’re usually uninvolved in day-to-day tasks. Employees decide on the best approach to fulfil their responsibilities. Laissez-faire leaders put a great amount of faith in the individual. They trust them to remain self-motivated, on-task, and accountable. If issues arise, these leaders are available to offer direction, but only upon request. Laissez-faire leaders allow each member of their team to succeed or fail based on their own abilities.
An advantage of laissez-faire leadership is the freedom to operate without restrictions or interference from management. This gives skilled and self-motivated employees a chance to reach their fullest potential.
A disadvantage can be the loss of productivity without a strong leadership hand to keep it on track. This can result in missed deadlines, omissions in the process, and low-quality work. With each team member pursuing goals in their own way, team unity may suffer. Some may start to lose interest in work due to distant and seemingly uninterested leaders. This can lead to significant losses for the organisation. Disengaged employees can cost businesses money!
Laissez-faire leadership is best when individuals are able to function without supervision. Before using this style, make sure each team member has the right skill level and self-direction capability. They must be able to motivate themselves to keep the work going. Otherwise, this approach could backfire and cause more harm than good.
How to choose your leadership style?
Review your current team dynamic. Are they excelling or unengaged? If it’s the latter, you might want to review your methods. Figure out what needs to stay the same and what needs to change. A leader sets the tone for the entire team. By changing the way you lead, you may find that your team will adapt, evolve, and improve.
Which business leadership style is right for you? You may find that you don’t fit neatly into any one category. The most successful leaders are those who jump between leadership styles. Pick and choose techniques that best fit the team or task at hand and adapt them along the way as needed. Effective leadership is, and always has been, about knowing what techniques to use and when.
The most important leadership skill that you can develop is self-awareness; know what works and what doesn’t. By understanding these most common business leadership styles, you’ll be able to move between them as needed, and set yourself and your team up for success.
