Leadership Style

Autocratic:

• Leader makes decisions without reference to anyone else
• High degree of dependency on the leader
• Can create de-motivation and alienation of staff
• May be valuable in some types of business where decisions need to be made quickly and decisively

Laissez-faire

• ‘Let it be’ – the leadership responsibilities are shared by all
• Can be very useful in businesses where creative ideas are important
• Can be highly motivational, as people have control over their working life
• Can make coordination and decision making time-consuming and lacking in overall direction
• Relies on good team work and good inter-personal relationships

Democratic

• Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation - Consultative: process of consultation before decisions are taken - Persuasive: Leader takes decision and seeks to persuade others that the decision is correct

Democratic

• May help motivation and involvement
• Workers feel ownership of the firm and its ideas
• Improves the sharing of ideas and experiences within the business
• Can delay decision making

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What type of leader?

Paternalistic

• Leader acts as a ‘father figure’
• Paternalistic leader makes decision but may consult
• Believes in the need to support staff

Leadership style will depend on:

• Risk - decision making and change initiatives based on degree of risk involved
• Type of business – creative business or supply driven?
• How important change is
• Organisational culture – may be long embedded and difficult to change
• Nature of the task – needing cooperation? Direction? Structure?

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