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Transformational Leadership
Laissez-Faire Leadership
Examples: Warren Buffet (Business Magnate and Investor),
Richard Branson (Founder, Virgin Group)
Key Phrase: Ill give you the tools and autonomy to execute
Description: Think hands-off when you talk about laissez-faire
style of leadership. Leaders delegate responsibility for the
accomplishment of work objectives and hand over decision-making
power to their employees. They do however provide general direction
and the tools for goal achievement. A business has to be involving, it
has to be fun, and it has to exercise your creative instincts, is Richard
Bransons quote that is often used to highlight his laissez-faire
leadership style.
Strengths:
1. Enables employees to have creative freedom and approach their
task autonomy
2. Great for creating future leaders
3. Delegation of tasks results in better use of time for the leader
Coaching Leadership
Examples: Nick Bollettieri (American Tennis coach to grand slam
winners like Andre Agassi, The Williams Sisters, Maria Sharapova
and more), Cesar Milan (Dog Psychologist and TV Show Host)
Key Phrase: Let me teach you how its done
Description: This style of leadership focuses on the strengths and
weaknesses of individual team members or employees. This type of
leader coaches a person to realize his or her potential and in the
process achieves the identified goals.
Strengths:
1. Knowledge transfer takes place organically
2. Great for creating successors
3. Creates feelings of empowerment and motivation amongst team
Weaknesses:
1. Can sometimes cross the thin line between coaching and micromanaging
2. Might discourage independent work among staff, while
dependencies on the leader can increase
3. Does not work with large teams and organizations
Authoritative Leadership
Examples: Alex Ferguson (Former Manchester United team
manager), Margaret Thatcher (Late U.K. Prime Minister), Jack Welch
(Former CEO, General Electric)
Key Phrase: I direct, you follow
Description: These leaders follow a commanding and hands-on
style of leadership. Authoritative leaders are known to keep their
teams on their toes, while constantly providing direction and
instructions.
Strengths:
1. Great during crisis situations and at inflection points
2. Can get work done
Weaknesses:
1. Can stifle creativity
2. May curb the creation of future leaders within an organization
3. Might invoke fear among staff, instead of true respect
4. There can be conflict if team members are experts who know more
than the leader
Charismatic Leadership
Examples: Barack Obama (U.S. President), Oprah Winfrey (TV
Show Host & Media Proprietor), Mother Teresa (Late Catholic nun,
missionary, and social worker)
Key Phrase: Lets do it together
Description: Charismatic leaders ooze charm allowing them to
connect with and mobilize people to achieve goals. These leaders
easily appeal to people and use their strengths to forge lasting
business relationships.
Strengths:
1. Can inspire people to act and move towards goals
2. Are seen as more approachable and friendlier than other leaders
3. Can build strong relationships and also repair relationships gone
sour
Weakness:
1. While charismatic leaders are proven activators, they sometimes
lack follow-through when it comes to execution
2. May miss out on finer technical and practical details since they
focus more on human relationships
3. Could come across as self-promoting
With rapid changes in work styles and expectations of the younger
workforce entering the market, the need for more laissez-faire leaders
is on the rise. However, the importance of other leadership styles has
not diminished in any way. Volatile markets, an ever increasing
demand for better products and a changing workforce mean leaders
now need to more agile and versatile to assume various leadership
styles as needed
involves the redistribution of authority and power between managers and employees
to provide employee involvement in the process of decision making.
The Democratic Leadership Style in Action
Before going any further, it is important to point out that there are conceptual
differences between authority and leadership. The former is formalized power that
is conferred on a person to engage in particular activities sanctioned by an institution
or individual who has the power to be authoritative. For example, in a case where an
individual is elected to a public office, the citizens of the state effectively conferred on
that individual the power of representation. In an organizational structure, certain
powers are conferred on the CEO of the company by a board of directors to
implement board policies. However, leadership can be considered as the power
possessed by an individual, who influences the action and belief of others. Formal
authority may or may not be possessed by a leader and an individual who has
authority may or may not occupy a leadership position. In essence, leadership is a
behavior and not an office or position held by an individual. Democratic principles are
used to manage the democratic leadership approach. These principles include
deliberation, inclusiveness, equal participation and self-determination. The
democratic leadership style is characterized by the three features outlined below:
Delegation of Responsibility
A democratic leader will delegate responsibility among members of his or her team
to facilitate member participation in making decisions.
Empowerment of Group Members
It is incumbent on leaders to empower their team members in order that the
members will be properly equipped to accomplish their tasks. Included in the process
of empowerment is the provision of the education and training required for the
completion
of
delegated
tasks.
Aiding the Process of Group Decision Making
A significant role played by the democratic leader is ensuring that democratic
deliberation takes place when group decisions are being made. This indicates that
the leader is supposed to serve as a mediator and facilitator between members of
the group, make sure that the members are psychologically well and there is a
respectful environment at all times.
Similar to every other style of leadership, there are advantages and disadvantages of
democratic leadership. Some of these benefits and drawbacks are outlined below:
democratic leadership because of the support and nurture that is embodied in this
leadership approach.
Time Consuming
The consultation process could result in procrastination. If an organization has a
project or issue that is urgent, democratic leaders cannot usually work to the
timescales required. It takes time to talk to a number of individuals and collect a
variety of opinions and many democratic leaders find it difficult to cut corners.
Become Apologetic
Democrat leaders sometimes build an environment in which individuals expect for
their idea to be implemented. Where there are a variety of solutions in a particular
project, only one can be implemented and democratic leaders will have to invest time
in apologizing and smoothing things over with individuals whose ideas were not
used.
leader will have to learn how to put his or her foot down and come to a decision in
certain situations.
FutureofWorking.com | 8 Transactional Leadership Advantages and Disadvantages
team are more motivated to perform and at the same time be more self-confident.
This is partly because of the autonomy given to subordinates makes them able to
carry out their tasks without having to be conscious that eyes are directly on them.
3. Clear Structure
Transactional leadership is also composed of a structure that is clear and concise.
Employees of an organization with this kind of management style are informed
before-hand of what the company expects from them. They are also provided with
clear instructions and expected to follow a chain of command which makes it easier
for them to know what proper channels to go to. This also makes them aware from
day one that they will be rewarded for following objectives and completing their
tasks with flying colors while they will also be punished if they go against the policies
of the organization.
4. Productivity and Costs
A transactional leadership is effective when it comes to increase in production and
cutting down costs. These are due to the fact that this leadership style has shortterm goals that make it easy for employees to get things done. Also, the rewards
promised with this kind of leadership serve as motivators for members of the team
to do their tasks at the shortest time possible for incentives, whether monetary or
psychological.
organization relies on a transactional leader, if this person leaves, it can affect the
business because most of the employees are have not been given the opportunity to
become leaders but merely followers.
3. Accountability of Employees
Another disadvantage of transactional leadership is its practice of providing the tasks
to employees, along with their policies and principles to be strictly followed. If and
when something goes wrong in the process, employees are the ones to be blamed
and who are responsible for the outcome. Critics find this to be a reason for the
dissatisfaction and unhappiness of employees. This is because these people know
that the organization does not really put their welfare first. Also, this type of
management makes them feel like they are not really members of the organization
but merely people paid to do their jobs.
4. Insensitivity
Since transactional leaders operate within rules that cannot be changed, managers
with this style of leadership do not really put the emotions of employees in
consideration so long as tasks are done. Employees are given clear and detailed
instructions but they are also expected to perform these tasks efficiently and on
time. What transactional managers have with their subordinates are more of
transitory working relationships than emotional ones. As a result, employees also
become insensitive to demonstrating concern for the company but merely
performers who are motivated by rewards.
Transactional leadership still remains to be popular among the leadership styles
because of its reward and punishment principle that motivate employees to be
productive. However, it also has its share of criticisms because of the way it controls
its employees performance and hampers the leadership and creativity skills of the
workforce.
Therefore, its simpler to look at the types of managers out there, and
consider how they differ, and what their strengths and weaknesses are.
In 2002, psychologist Daniel Goleman set out a list of leadership styles in the
workplace. Here are five of them, and the pros and cons for each.
Visionary
The defining traits of a visionary leader are that this person will constantly
look to the future in every facet of the job, and engage workers by sharing
their own optimistic views of where the company is headed. These leaders
promote innovation, learning, creativity and relationships, all in the effort to
share and attain a common goal.
In short, a visionary helps others see the goal and stay focused on it.
Strengths: When times are tough, its easy for employees to lose sight of the
companys goals. A visionary leader can help gather the troops and remind
everyone of why they are there, what their role in the future of the company
is, and how great it will feel once they have attained the goal as a team.
Weaknesses: Vision is one thing, but action is another. If a leader is too
focused on whats happening in the future, they may not have the same level
of drive to enforce actions to make it happen. There is also a chance they will
not devote as much time or energy on pressing problems of the present.
Coaching
A coaching leader is one who puts the most time and effort into building up
their team members skills, experience, confidence, and knowledge. They will
be the type to say give this a try, and would much prefer to spend 30
minutes teaching an employee how to answer a question, rather than take a
few minutes to answer it themselves.
managers should learn to say "no" to the yes-people because constructive conflict leads to
creative engagement, which results in competitive businesses.
Considerations
Effective managers know when to use the task-oriented style and when to use other styles of
leadership. For example, in the relationship-oriented style, managers look out for the welfare
of their employees and provide nurturing environments to maximize their productivity.
Managers can use the task-oriented leadership style to define tasks and expectations, and the
relationship-oriented style to motivate ordinary employees to achieve extraordinary results.
12 Different Types of
Leadership Styles
BUSINESS BY AHMED RAZA
1. Autocratic Leadership
Autocratic leadership style is centered on the boss. In this
leadership the leader holds all authority and responsibility. In
this leadership, leaders make decisions on their own without
consulting subordinates. They reach decisions, communicate
them to subordinates and expect prompt implementation.
Autocratic work environment does normally have little or no
flexibility.
In this kind of leadership, guidelines, procedures and policies
are all natural additions of an autocratic leader. Statistically,
there are very few situations that can actually support
autocratic leadership.
Some of the leaders that support this kind of leadership
include: Albert J Dunlap (Sunbeam Corporation) and Donald
Trump (Trump Organization) among others.
2. Democratic Leadership
In this leadership style, subordinates are involved in making
decisions. Unlike autocratic, this headship is centered on
subordinates contributions. The democratic leader holds final
responsibility, but he or she is known to delegate authority to
other people, who determine work projects.
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4. Transformational Leadership
Unlike other leadership styles, transformational leadership is
all about initiating change in organizations, groups, oneself
and others.
Transformational leaders motivate others to do more than
they originally intended and often even more than they
thought possible. They set more challenging expectations
and typically achieve higher performance.
Statistically, transformational leadership tends to have more
committed and satisfied followers. This is mainly so because
transformational leaders empower followers.
5. Team Leadership
Team leadership involves the creation of a vivid picture of its
future, where it is heading and what it will stand for. The
vision inspires and provides a strong sense of purpose and
direction.
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6. Cross-Cultural Leadership
This form of leadership normally exists where there are
various cultures in the society. This leadership has also
industrialized as a way to recognize front runners who work
in the contemporary globalized market.
Organizations, particularly international ones require leaders
who can effectively adjust their leadership to work in
different environs. Most of the leaderships observed in the
United States are cross-cultural because of the different
cultures that live and work there.
7. Facilitative Leadership
Facilitative leadership is too dependent on measurements
and outcomes not a skill, although it takes much skill to
master. The effectiveness of a group is directly related to the
efficacy of its process. If the group is high functioning, the
facilitative leader uses a light hand on the process.
On the other hand, if the group is low functioning, the
facilitative leader will be more directives in helping the group
run its process. An effective facilitative leadership involves
monitoring of group dynamics, offering process suggestions
and interventions to help the group stay on track.
8. Laissez-faire Leadership
Laissez-faire leadership gives authority to employees.
According to azcentral, departments or subordinates are
allowed to work as they choose with minimal or no
interference. According to research, this kind of leadership
has been consistently found to be the least satisfying and
least effective management style.
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9. Transactional Leadership
This is a leadership that maintains or continues the status
quo. It is also the leadership that involves an exchange
process, whereby followers get immediate, tangible rewards
for carrying out the leaders orders. Transactional leadership
can sound rather basic, with its focus on exchange.
Being clear, focusing on expectations, giving feedback are all
important leadership skills. According to Boundless.com,
transactional leadership behaviors can include: clarifying
what is expected of followers performance; explaining how
to meet such expectations; and allocating rewards that are
contingent on meeting objectives.