1.

Laissez-Faire Leadership

This type is the largely hands-off with minimal direction and supervision from the manager to the staff.
The key to using this method is having well trained and efficient directors who can work as
intermediaries between you and your employees.

2. Autocratic Leadership

This is a leadership style that has become something of a relic in today's business environment. The
reason is that most employees work better without the overbearing presence of their boss around at all
times. However, there are some who would argue that the Autocratic methods are still as effective as
they were in Feudal Europe - but only if properly balanced with feedback and face time.

3. Participative Leadership

The third approach is to find a happy medium between the above two methods. These managers back-
off more to allow people to tap their creativity and think independently using their own initiative, while
still maintaining enough control to guide the overall vision of teams without imposing their own vision
on their decisions. In short, you're giving them a much greater lead and will need to be more trusting of
decisions made by your directors.

These three leadership types form the foundation of most styles used by corporate leaders today.
However, they do not necessarily encompass every philosophy on the nature of a business and how
leadership skills should be developed.

Small business pro

https://www.smallbusinesspro.co.uk/marketing/leadership-styles.html

Citation

McGregor, D. (1966). Leadership and motivation. Oxford, England: M.I.T. Press.

Theory Y is a participative style of management which “assumes that people will exercise self-direction
and self-control in the achievement of organisational objectives to the degree that they are committed
to those objectives”. It is management's main task in such a system to maximise that commitment.

Theory Y gives management no easy excuses for failure. It challenges them “to innovate, to discover
new ways of organising and directing human effort, even though we recognise that the perfect
organisation, like the perfect vacuum, is practically out of reach”. McGregor urged companies to adopt
Theory Y. Only it, he believed, could motivate human beings to the highest levels of achievement.
Theory X merely satisfied their lower-level physical needs and could not hope to be as productive. “Man
is a wanting animal,” wrote McGregor, “as soon as one of his needs is satisfied another appears in its
place.”

Theory X is an authoritarian style where the emphasis is on “productivity, on the concept of a fair day's
work, on the evils of feather-bedding and restriction of output, on rewards for performance … [it]
reflects an underlying belief that management must counteract an inherent human tendency to avoid
work”. Theory X is the style that predominated in business after the mechanistic system of scientific
management had swept everything before it in the first few decades of the 20th century.

https://www.economist.com/node/12370445

https://www.toolshero.com/leadership/mcgregor-theory/

Theory y- There is no need for the system that involves rewards and punishments. People are prepared
to take responsibility for everything they do. People want to use their creativity and they like to take a
creative problem solving approach. They want to get the most out of their work through satisfaction,
appreciation and motivation. Theory Y invites renewal processes and motivation can be traced back to
the style of leadership. Theory Y therefore assumes that control, rewards and punishments are not the
only ways to stimulate people. People can focus on the objectives they pursue through self-direction
and self-control.

The authoritarian leadership style is therefore the most appropriate leadership style in Theory X.
According to this theory, pure work motivation consists of financial incentives. People want to avoid
work and they must be continually coerced and controlled. Therefore, the system of rewards and
punishments works best for them.

An average employee intrinsically

Theory X is based on the assumption that the employees emphasize on the physiological needs and the
safety needs; while Theory X is based on the assumption that the social needs, esteem needs and the
self-actualization needs dominate the employees.

http://www.jfb.gov.jm/PDF/motivate.pdf