In order to be competitive in business, companies may need to hire effective leaders. Leadership styles are influential in how employees view their roles in the organization and may affect their productivity. Since all companies are not the same, leaders may be hired according to the particular organizational culture (values, beliefs, behaviors), and whether the main focus is on productivity or employee relationship building. In any case, hiring the right leaders that are a match for the organization may be critical to the success of the business.
The Autocratic Leader
The autocratic (also referred to as authoritarian) leader has complete authority to make decisions and tell subordinates what to do. Employees may have little opportunity to offer ideas or suggestions with this style. This style can motivate by fear such as threats of job loss or motivate by employees' loyalty to a particular leader. This style is very dominating and discourages independent creativity. It may work best in a situation where productivity is of the highest concern (see Reference 1).
The Democratic Leader
The democratic leader (also referred to as participative leader) seeks advice and assistance in making decisions from subordinates. Democratic leaders may recognize the talents and skills of the employees and utilize them for the good of the company. This style may be more popular with employees who want to be recognized for their ideas and specific skills. The democratic leader may, however, make the ultimate decision. This style may work best where people relationships are of primary concern (see Reference 2).
The Laizzez- Faire Leader
Laizzez-faire is a French term for "allow to do." This leadership style provides free rein for employees to do the job their way with little monitoring or control. One major concern with this leadership style is the lack of direction or guidance could lead to poor performance if the employees lack confidence and are not self-motivated. This style may work best with highly trained employee teams (see Reference 3).
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