You could be a natural-born leader. You could be somebody who is growing into a new opportunity in business management. You could even be somebody who fills their time helping out with daily duties. Whether you benefit from a steady hand in periods of sustained growth, or, you thrive in entrepreneurial thinking; your leadership style in business is going to directly impact the culture, morale, and of course, overall success of the organization.
In this article, I’m going to dive into business management, touching on the various types of leadership styles in business, and discuss just how using the wrong management style can hurt everyone.
Let me help you get a better idea of what kind of leader you aspire to become, and provide vast amounts of success to your organization through the use of powerful, tried and tested techniques.
4 Types of Leadership Styles in Business
Finding effective and efficient leadership styles in business opens you up to a world of opportunity, and can even bring the organization one step closer to success.
Part of becoming an effective leader is just one piece of the puzzle in establishing a successful business. However, there isn’t just one right way to lead. The good news? You get to choose what type of leadership style in businessyou would like to use.
Once you establish who you are, develop it. Instill it into yourself, your team, and the goals of the organization.
To help out, I’ve listed four effective leadership styles in business, and some tips that are sure to assist when the time comes to form your own.
Let’s check them out.
Transformational Leadership
First up on the list, is transformational leadership. In business management, this leadership style works with the goal of transformation at the forefront of their mind.
Transformational leaders constantly thrive in transforming their teams, and seek daily improvement. They create an extraordinary vision of the future and share it with the team in order to promote the idea of teamwork. In this, everyone follows the exact same goal and vision.
Democratic Leadership
Next up, we have democratic leaders. This leadership style in business allows a leader to include their team in every single decision that arises. Of course, the final decision still does lie with the leader themself; however, they will always ask for opinions and thoughts.
Autocratic Leadership
Opposite to that, we have autocratic leadership -where the leader makes every single decision by themselves, and they don’t consult the team members. If your organization thrives on quick decision-making, this is a great leadership style in business. However, you must bear in mind that it may cause employees to feel out of touch within their working environment.
Laissez-Faire Leadership
I know, the name can be hard to say. But leaders who practice this type of leadership style in business are loved.
Why, you ask? Well, only because this style revolves around freedom (something we humans love).
In business management, leaders will always be a helping hand when it comes to providing support and resources for their members, but only when necessary. Micromanaging does not play a role here, which makes this an incredibly effective leadership style.
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The Wrong Management Style Hurts Everyone
Overall, there isn’t just one style that works perfectly. It’s going to vary from environment and industry.
With that being said, there are so many companies out there that end up choosing leaders that are just not the right fit. However, in most cases, it isn’t the leader’s fault. Instead, the environment and culture are to blame. They are expected to excel, but their style just doesn’t match.
The outcome? Well, let’s just say it’s undesirable. When the key is to keep moving forward, this will just hold you back.
When an organization has to deal with an unengaged team in business management, it results in:
- Lower productivity
- More inadequate quality of work
- Dramatically increased turnover
- More issues with theft and absenteeism
- Reduced profitability
The bottom line – choosing the wrong management style will only kill your productivity, demotivate your employees, and will make them become disengaged, ultimately hurting the entire business.
However, if you come up with a style that suits you, the company, and your team, you could be well on your way to success in an extraordinary working environment.
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Whether you’re looking to climb your way to the top and become an adored leader, or you’re already there and want to learn how to nail the right leadership style in business – check out my Career Accelerator Program.
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