Leadership styles and how they impact your business

Wondering what kind of leadership style your business needs to succeed? Perhaps you are following the basic definition of a leader, which aims to motivate and influence employees to meet your organisation’s effectiveness and goals. This definition might sound familiar if you’re doing your job. However, let’s get more specific. Do you often find yourself in a particular leadership style that you typically use?

Most leaders usually adhere to one or two favoured styles of leadership wherein they feel contented and efficient. But the challenge is that good leaders need multiple leadership styles to let them adapt to different situations.

Here are the most common leadership types and how they impact your business as a whole.

Authoritative leader. Gets the team pumped to move toward the businesses’ common vision and concentrates on end goals, which leaves the means up to its staff. The authoritative style is highly effective when your team requires a new vision because your circumstances have changed, or when strict guidance is not necessary. Authoritative leaders motivate an entrepreneurial spirit and pulsating enthusiasm for the common mission. However, it is not the best fit if the leader works with a team of experts who are more expert than him or her.

Pacesetting leader. Leaders of this type expect and model self-direction and excellence. This style can be easily summed up in one phrase “Do as I do, now.” This style is effective when the team is already skilled and motivated, and the business requires fast results. However, extensive use of this style can also backfire, overwhelming team members.

Affiliative leader. This type of leader works to cultivate emotional bond and belongingness to the organisation. It is summed up to a “people come first” philosophy. This type is effective in times of distress in the office, when teammates need to recover from the heavy loss, or when the team must rebuild trust. This style shouldn’t rely on too much because a sole reliance on nurturing and praise can lead to lack of direction and average performance.

Coercive leader wants instant compliance. I can be defined as a “do what I tell you” style. The coercive style is only effective in times of crisis, such when an undergoing company turnaround or a takeover attempt, or when an actual emergency is happening. This style can also assist in controlling a problematic teammate.

Coaching leader. This type of leadership develops people for the future of the company. This allows flexibility and encourages staff to try stuff. This style is effective when the leader looks to help teammates create lasting personal strengths that make them and the business successful overall. However, it can be ineffective when teammates are being unwilling and defiant to learn or change, or if the leader lacks proficiency.

Hiring outside help

When you’re dealing with ongoing challenges and changes, and you’re in uncharted territory with no means of knowing what comes next, it is wise to ask outside consultants to assist you in assessing your businesses’ current issue, plan solutions, and execute it to improve overall processes. They can assist in answering what is leadership as it applies to your business. They can assist you in finding the appropriate style that can work based on your situation.

What leadership style are you using? Is it effective in your business setting? Share it with us.

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