Leadership Styles in Management | Business Management

Learn about the different types of Leadership Styles studied in Management. This article will also help you to learn about:

1. Leadership Styles in Management
2. What are the Six Leadership Styles?
3. 4 Types of Leadership Styles
4. 3 Types of Leadership Styles

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Leadership Styles in Management:

The behaviour exhibited by a leader during the supervision of subordinates is known as leadership style. There are probably as many different styles of leadership as there are leaders.

Basically, three styles are listed out:

Leadership Style # 1. Directive, Autocratic or Authoritarian Style:

An autocratic leader is one who takes all decisions himself without consulting the subordinates. He centralises power and decision-making in himself. He oversees work from close quarters and exercises full control over subordinates. Orders are issued and subordinates are expected to execute these without back-talk. The leader, thus, tries to develop obedient and predictable behaviour from group members.

He permits very little freedom of action. Discipline is enforced by the use of rewards and threats of punishment. Communication tends to take a one-way route. Subordinates have to depend on the superior for everything (setting goals, determining priorities and implementing plans, etc., Figure 16:1: X = leader; A, B, C, D = subordinates.

Style Features:

i. Centralised power and decision-making

ii. Close supervision and control

iii. Discipline through rewards/punishment

iv. One way communication

v. Total dependence of subordinates on superior

Advantages:

i. Decisions can be made quickly con­trol can be centralized for orderly operations.

ii. Well-developed leadership skills can be applied directly to group activities.

iii. The leader can take direct control when there is a major problem or crisis. Best suited for crisis management.

iv. Suitable for managing inexperienced, insecure and incompetent subordi­nates.

v. Offers consistence in goals and procedures by leader making decisions.

Disadvantages:

i. May result in low motivation. It is difficult to develop motivation when the leader makes all the decisions.

ii. There is very little scope for develop­ing the creative potential of people

iii. Subordinates tend to develop defensiveness; they constantly look for ways and means to avoid responsi­bility.

iv. One way communication may lead to misunderstandings at various levels.

v. Subordinates tend to depend on leader for everything. Matters move slowly and it becomes difficult to adapt to change.

Leadership Style # 2. Participative or Democratic Style:

The participative leader encourages his subordinates to participate in the decision making process. He consults them before taking decisions. The suggestions put forward by subordinates are taken care of.

There is open, two-way commu­nication. Good rapport is maintained with members of the group. The leader does not dominate. He gives lot of freedom to subordinates. The emphasis is on cooperation and participation to achieve the maximum potential of the group.

Style Characteristics:

i. Involves people in decision making and goal setting

ii. Attitudes, feelings, suggestions of members considered while making decisions

iii. Freedom of thinking and action available to a reasonable extent

iii. Two way, open communication between members

v. Opportunity to use one’s potential in the service of organisation exists

Advantages:

i. Motivates people to do better

ii. Knowledge and experience of group members can be used in decision making.

iii. Individuals may dominate the par­ticipation or make disruptive contri­butions.

iv. Members feel more committed to group goals. There is less resistance to managerial actions.

v. Members develop healthy attitudes toward the leader, the work and the organization.

vi. Two-way communication keeps mem­bers informed about what is going on and why.

Disadvantages:

i. Individual abilities developed through participation

ii. Very time consuming approach from the leader’s point of view—quick de­cisions cannot be taken

iii. Participation may be used as an instru­ment to ‘pass the buck’ to subordinate

iv. Decisions get diluted, when attempts are made to please everyone.

v. Participation may be viewed as a sign of inefficiency on the part of the leader. Subordinates may view the leader as incompetent to handle the job independently.

vi. Participation may be used to manipu­late people to suit personal ends.

When to Use Participative Style?

Participative style is most effective when- (i) the organization has communicat­ed its goals and objectives to all the subordinates and the subordinates have accepted them, (ii) the leader is genuinely interested in obtaining ideas and suggestions from subordinates, (iii) the subordinates are highly interested in participating in organisational decision making, (iv) the subordinates have a reasonable amount of knowledge and experience and finally, (v) the time for task completion allows participation to take place in a meaningful way.

Is Participative Style Superior?

It is commonly believed that participative style helps subordinates to develop their talents fully. The participative leader is able to put them on the track easily and get the results without much difficulty, unlike an authoritarian leader. However, the superiority of participative style over authoritarian one is not supported by research. In one study, McCurdy and Efer investigated the effects of both these styles on subordinates’ performance.

The teams working under authoritarian leaders were told to simply obey orders, while those working under participative leaders were told to offer suggestions and not follow orders blindly. No difference in productivity between these two groups has been found by these researchers. In another study by Morse and Reine it has been found that democratic style results in higher job satisfaction to employees and autocratic leadership in greater productivity.

If the goal is to increase output, autocratic style is appropriate and if the goal is to have a highly motivated workforce, a democratic approach is called for. According to Vroom, the choice of a particular style depends on employee expectations also. Participative style will give positive results when applied on subordinates wanting to do things independently.

Autocratic vs. Democratic Style:

With the above information in the background, is it possible to draw the cur­tain between the autocratic and democratic styles now?

The following table is developed for this purpose:

Autocratic vs. Democratic Leadership Style:

Autocratic:

I. Manager using this style may be labeled as Theory X Leader

II. The leader is task oriented and re­strictive

III. Leader structures the work, strives to find out better methods and keeps the employees busy on the task.

IV. One way communication

V. Threads of control in the hands of one individual. Decision making is centralized. Quick decisions possible.

VI. Employee resistance may be high; getting them committed to goal is not easy.

VII. Developing subordinates and pre­paring a training ground for future managers is difficult.

Democratic:

I. Manager exhibiting this style may be labeled as Theory Y Leader

II. The leader is follower-oriented and permissive

III. The leader is considerate of his sub­ordinates, recognizes their needs and respects their human dignity

IV. Two way communication

V. Pushes controlling power to subordi­nates to a reasonable extent. Decentralized decisions take time.

VI. Resistance from employees is min­imum and hence commitment to objectives may be high

VII. Develops the subordinate and pre­pares him for future managerial roles.

Leadership Style # 3. Laissez Faire or Free Rein Leadership Style:

In the democratic style the leader encourages the group to think and develop a solution. The laissez faire or free rein leader goes a step further and turns an entire problem or project over to subordinates. The subordinates are asked to set their own goals and develop plans for achieving them. The leader does not direct at all. He acts as a passive observer and does not exercise power. There is total abdication of responsibility. He offers advice when required. There is very little control over the group members.

Style Characteristics:

i. Group members set goals and decide things on their own

ii. Leader is a passive observer of things

iii. Leader does not decide, does not control or exercise influence over the group

iv. Leader abdicates responsibility

v. Members operate in an unrestricted environment

vi. Communication is open and can take any direction.

The broken lines in the above Figure show the leader passing on materials and information to group members on request. There is no attempt to regulate the course of events. Free-rein leadership may be suitable where the organisational goals have been communicated well in advance and are acceptable to subordi­nates.

The subordinates, in turn, must be well-trained and highly knowledgeable concerning their tasks and willing to assume responsibilities. They must be highly motivated, sincere and duty-conscious. When these pre-conditions are met, free-rein style may yield good results.

Advantages:

i. Working independently can be moti­vational for some people.

ii. May encourage suggestions, creativity and innovations

iii. Group objectives may be ignored and individual objectives may dominate activities

iv. Open and direct communication with opportunity for self-expression

v. May increase the ‘quality of life’ for some group members.

Disadvantages:

i. Activities may suffer owing to lack of coordination.

ii. Group is flexible and can adapt quickly to change behavior.

iii. Lack of control may lead to disruptive.

iv. Individuals may go their own ways resulting in confusion and chaos.

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Leadership Styles in Management:

Leaders can undertake different approaches and methods to lead and manage an organisation. Good leaders are intelligent, initiated and motivated optimists with some defined values, attitudes and beliefs who can take up risks, make decisions and possibly lead an organisation to its future success. These leaders accordingly will have followers who understand and believe in the values, attitudes and beliefs of the leaders and cohesively attempt to meet the organisational goals and objectives.

Leadership styles or approaches undertaken by these leaders and followed by the followers are discussed as follows:

1. Autocratic or Authoritarian Leadership:

An autocratic leader has absolute authority and control who dictates policies and procedures of a business. This leader decides the goals and objectives to be achieved for a business without obtaining any meaning­ful participation from his/her subordinates. Autocratic or authoritarian leaders are believed to have limited trust towards their subordinates and use fear and punishment as a tool to motivate them.

Autocratic leadership is based on the principle of centralisation of power with all powers designated with the autocratic leader. Consequently, communica­tion flows downward from the autocratic leader to his/her subordinates. Autocratic leadership is considered to be useful during the time of crisis as quick decision-making is guaranteed from the leader. People however dislike autocratic leadership as they make poor motivators. This leadership styles can possibly limit creative and innovative ideas from subordinates and there is limited scope for development of subordinates.

2. Democratic Leadership:

Unlike autocratic leadership which is a centralised authority, demo­cratic leadership encourages participation, relies on subordinates’ knowledge and expertise for comple­tion of tasks and depends on subordinates respect for influence. A democratic leader guides a team of individuals collectively involved in decision-making process.

This team determines relevant tasks and approaches necessary for their completion, which is presented in front of the democratic group leader who makes the final decision. There is complete trust and confidence on the subordinates whose ideas and opinions are taken frequently and utilised constructi­vely. Decision-making is encouraged at all levels making team-work as the primary basis for task-completion.

3. Laissez-Faire Leadership:

Laissez-faire literally means “let them do”, which further implies no intervention of any authority or guide or leader. It is the exact opposite of autocratic leadership where all powers lie with the subordinates. In laissez-faire leadership, the manager determines the policies, programmes and possible limitations for particular actions or tasks and leaves it at the behest of the subordinates who take up leadership roles on their own and complete those tasks and activities.

These subordinates are usually compe­tent and committed subordinates who are pro­vided autonomy to make relevant decisions. This leadership style attempts to boost employee morale and provides opportunities for personal growth. This leadership style however, does not provide guidance to subordinates when it is required and subordinates may ignore a leader’s contribution as if no work was done earlier.

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Answer 3. Different Types of Leadership Styles (4 Types):

The leaders have profound influence on the employees through their action, behaviour, attitude, and philosophy. The pattern exhibited by the leader though his ideas and deeds reflect his/her style. This is referred to as leadership style. Leadership styles portray the pattern exhibited in the actions of the leader which includes philosophy, attitude, and skill of the leader.

It is interesting as well as necessary to understand the different leadership styles. The concept of leadership style has also evolved and manifested in different types. In this section we shall try to understand the different leadership styles exhibited by the leaders.

Very often it has been observed that the leaders deploy different methods to motivate their employees. If a leader emphasis rewards, the leader practices positive leadership. On the other hand if the leader laid emphasis on penalty and punitive actions, the leader is deemed to practice negative leadership.

Now, let us try to understand the broad types of leadership styles:

Style # 1. Autocratic or Authoritarian Leadership:

In this type of leadership the leader consolidates the power and decision­-making in him/her. The leader doesn’t consult the employees while giving orders, assigning duties to the employees. An Autocratic or Authoritarian leader assumes full authority and responsibility.

Autocratic leadership can be considered to be negative as because this type of leadership emphasizes threats and punitive actions. The employees are required to act as being directed. In most of the cases, the autocratic leader neither cares for opinions of the subordinates nor allows them to influence the decision making process. The autocratic leader considers that he/she alone can take the best decision in any situation.

Autocratic leadership involves strict supervision, explicit direction and authoritative order of the leader.

The merits of autocratic leadership – This type of leadership facilitates immediate and swift decisions, rapid actions and unity of direction. The entire process is quicker as there is a lesser degree of delegation.

The demerits of autocratic leadership – This type of leadership often disturbs the morale of the employees and they feel suffocated and frustrated. The employees feel alienated from the decision making process and lack the feeling of belongingness .Excessive use of autocratic leadership may create an environment of dissent and rebellion. This may result in strikes and industrial disputes. Penalties and punitive actions may influence the performance of the employees.

Autocratic leadership may be challenged in the following situations – First, if the followers are not submissive and rebellious. The new generations often question autocratic leadership. Second, if the ego level of the followers is high. Third, if people change their attitude and aware of their rights.

Style # 2. Democratic or Participative Leadership:

Under this type leadership the input of team members, followers, and peers are considered but the final decision is taken by the participative leader. Participative leaders decentralize authority. The subordinates are consulted and their participation in the formulation of plans and policies is encouraged. This category of leadership provides morale boost to the employee because they feel that they make contributions to the decision-making process. This style is not suitable when the leader has to make a decision in a short period.

The Merits of Participative Leadership:

(i) It results in higher motivation and superior morale;

(ii) There is positive impact on performance and productivity;

(iii) It enhances the co-operation with the management;

(iv) The incidence of grievances decreases and

(v) It improves work culture and reduces absenteeism.

Style # 3. The Laissez-Faire or Free-Rein Leadership:

In this type of leadership the leaders passes on the responsibility for decision ­making to the subordinates and takes a minimum of initiative in administration. The leaders do not impose directions and rather allows the group to establish its own goals and work out its own problems. The leader has minimal interference. The basic idea is that when the members of the group when left to themselves, they will put their best effort and better management and result can be achieved.

Laissez-faire leadership style is suitable when the employees are highly trained and experienced. However, this type of leadership may not be successful when the employees need supervision and lack experience. Besides, under this style leadership lacks supervision and a watchdog mechanism which can affect the production process. This type of leadership can also lead to lack of control over the subordinates.

This style of leadership is not suitable when the leader blames others when things go wrong. This style is best suited when the leader has full trust and confidence in the subordinates.

Style # 4. Paternalistic Leadership:

In this style of leadership the leader plays the paternal role. The relationship between the leader and the subordinates resembles the relationship exhibited between the head of the family and the members of the family. The paternalistic leader guides and protects his subordinates as members of his family. The subordinates are provided with good working conditions and other benefits.

This leadership style is deemed to improve working conditions, but at the same time this style of leadership might breed antagonism and antipathy in the subordinates.

Style # 5. Transactional Leadership:

In this type of leadership, the leaders focus on motivating the subordinates through a system of rewards and punishments. The leaders on one hand recognize good performance of the followers and reward them. On the other hand, the leaders provide punishments to the subordinates who fail to perform. The leaders reward the workers in exchange of certain level of performance. The transactional leader in this process establishes and standardizes practices of the organization.

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Leadership Styles in Management: with Advantages and Disadvantages

Leadership style is defined as the manner in which the leader supervises and directs the members of the team. It reflects how one behaves while trying to influence the performance of others. It is a relatively consistent pattern of behaviour, skills and practices that characterise one’s interactions with others in a situation requiring influencing.

Leadership style reflects different types of leaders.

Types of leaders can be discussed under the following categories:

(A) Classification on the Basis of Rewards:

Depending upon the rewards that leaders offer, there can be two types of leaders:

1. Positive Leaders:

Leaders who motivate their employees through rewards — financial or non-financial use positive style of leadership. Positive leadership results in high morale, high job satisfaction and high contribution to organisational productivity and goals.

2. Negative Leaders:

When leaders use penalties and punishments as means of motivation, they use negative style of leadership. Negative leadership derives desired performance from followers at the cost of their morale and satisfaction. Such leaders are more appropriately termed as ‘bosses’.

No leader can be fully positive or negative. Positive and negative styles lie on a continuum with positive style at one end of the continuum and negative at the other end. Depending upon the nature of leaders, followers and the situation, a leader may partly adopt the positive style and partly negative style of leadership. A leader with high degree of positive leadership qualities may sometimes use negative measures and vice versa.

(B) Classification on the Basis of Power:

Based on sources of power, leadership style may be one of the following:

1. Autocratic Leaders:

Meaning:

Autocratic leaders make decisions and issue orders and instructions by virtue of their position and authority. Leaders hold authority and responsibility for accomplishment of the task and normally follow negative leadership style to motivate workers. The threat of punishment and penalties makes workers obey their orders. They retain decision making power with them and do not delegate authority and responsibility.

They may also offer rewards (positive motivation) to followers for their good performance. In such cases, they are called benevolent autocratic leaders.

This style is used when the leader tells his employees what he wants and how he wants it done, without seeking the support of his followers. Some of the appropriate conditions to use it are when leaders have all the information to solve the problem, they are short on time and their employees are well motivated.

Some people tend to think of this style as leading by threats and abusing their power. This is not the authoritarian style … rather it is an abusive, unprofessional style called bossing people around. It has no place in a leader’s profile.

Advantages of Autocratic Leadership Style:

(a) Since decision-making power is centralised, decisions are taken quickly.

(b) Less competent and skilled employees can be hired by management as they have to only carry out instructions of the leaders and not initiate actions on their own.

This style of leadership can be successful only in the short-run. In the long-run, it may lead to dissatisfaction and frustration amongst workers.

Drawbacks:

(a) Workers do not get job satisfaction as they are not willing to work under negative style of leadership.

(b) It inhibits the innovative power of workers as they do not participate in the decision- making processes.

(c) Followers feel frustrated and dissatisfied which can affect organisational productivity. There are, however, some instances when autocratic style of leadership may be appropriate. Some situations call for urgent action and in these cases an autocratic style of leadership may be the best. In addition, most people are familiar with autocratic leadership and, therefore, have less trouble adopting that style.

Furthermore, in some situations, sub-ordinates may actually prefer an autocratic style when they are unskilled, inexperienced and submissive.

2. Participative (Democratic) Leaders:

This style involves the leader and one or more employees in the decision ­making process (determining what to do and how to do). However, the leader ‘maintains the final decision making authority. Using this style is not a sign of weakness; rather it is a sign of strength that employees will respect.

This is normally used when leaders have part of the information and employees have other parts. A leader is not expected to know everything-this is why he employs knowledgeable and skillful employees. Using this style is of mutual benefit-it allows them to become part of the team and allows the leader to make better decisions.

The democratic leader makes decisions by consulting his team, whilst still maintaining control over the group. The democratic leader allows his team to decide how the task will be tackled and who will perform which task.

A good democratic leader encourages participation and delegates wisely, but never loses sight of the fact that he bears the crucial responsibility of leadership. He values group discussion and input from his team and draws from a pool of his team members’ strong points in order to obtain the best performance from his team. He motivates his team by empowering them to direct themselves and guides them with a loose reign.

Advantages:

Democratic style of leadership has the following benefits:

(a) Psychological Involvement:

The followers contribute to organisational goals not only because they are committed to do so but also because they are mentally and psychologically involved in attainment of these goals.

(b) Motivation:

When leaders invite suggestions from followers, it increases their motivation to participate in the decision-making processes.

(c) Responsibility:

Though the leader has ultimate responsibility for the task, he shares it with his followers. Followers assume personal responsibility for the activities assigned to them and feel motivated to perform them successfully.

(d) Increase in Power:

When followers bestow confidence in their leaders, leaders’ expert and referent power increases which further increases social interaction between them and their followers.

(e) Increase in Job Satisfaction and Cooperation with Management:

Employees’ contribution to organisational goals makes them committed to their jobs and reduces inter-personal conflicts. This increases job satisfaction and cooperation of employees with the management.

(f) Reduction in Employees’ Turnover and Absenteeism:

On-the-job Satisfaction makes the employees committed to their jobs and they enjoy working with the organisation. This reduces the rate of employee turnover and absenteeism.

(g) Improved Communication:

Constant interaction and participation of leaders and followers in decision-making processes improves communication amongst them.

Limitations:

This style of leadership suffers from the following limitations:

(a) Consulting sub-ordinates every time a decision has to be made is time consuming. Decisions may, therefore, be delayed.

(b) Suggestions given by sub-ordinates may sometimes be better than what leaders can think of. Leaders, in such cases, do not frequently invite suggestions.

(c) Employees may not always be willing to offer suggestions.

3. Laissez-Faire or Free-Rein Leaders:

Meaning; Leaders give responsibility of setting goals and devising means to achieve them to the group members. They allow group members to carry out the work on their own. The leader plays a minor role in affecting the group goals. The laissez-faire manager exercises little control over his group, leaving them to sort out their roles and tackle their work, without participating in this process himself. In general, this approach leaves the team floundering with little direction or motivation.

The Laissez-Faire technique is usually appropriate when leaders lead a team of highly motivated and skilled people, who have produced excellent work in the past. Once a leader has established titles team is confident, capable and motivated, it is often best to step back and let them get on with the task, since interfering can generate resentment and detract from their effectiveness. By handing over ownership, a leader can empower his group to achieve their goals.

Advantages:

(a) As employees are responsible for framing and achieving the group goals, it increases their morale and they strive for higher job satisfaction.

(b) Employees’ potential is exploited to the fullest extent. Their innovative and creative capacities are, therefore, explored.

(c) Sub-ordinates train their group members and motivate them to work. This develops sub-ordinates and increases productivity.

Limitations:

(a) Leaders do not participate in the groups working. They only clear the doubts of group members. The efficiency of such work activities is generally low.

(b) Leaving everything to sub-ordinates may be detrimental to effective attainment of organisational goals.

(C) Classification on the Basis of Authority:

Leaders can be classified on authority as follows:

1. Formal Leaders:

From the view point of official recognition from top management, leaders may be classified as formal and informal leaders. A formal leader is one who is formally appointed or elected to direct and control the activities of the sub-ordinates. He is a person created by the formal structure, enjoys organizational authority and is accountable to those who have elected him in a formal way.

The formal leader has a two­fold responsibility. On the one hand, he has to fulfill the demand of the organization, while on the other he is also supposed to help, guide and direct his sub-ordinates in satisfying their needs and aspirations.

2. Informal Leaders:

Informal leaders are not formally recognized. The derive authority from the people who are under their influence. In any organization we can always find some persons who command respect and who are approached to help, guide and protect the informal leaders have only one task to perform, i.e., to help their followers in achieving their individual and group goals.

Informal leaders are created to satisfy those needs which are not satisfied by the formal leaders. An organization can make effective use of informal leaders to strengthen the formal leadership.

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Leadership Styles in Management: Studied in Management Science

The word style denotes the way in which the leader influences followers. It is a way of action or modus operandi of a leader. In fact, what the leader does is the determinant of how well he leads. Hence, leadership styles are “patterns of behaviours or activities” of leader.

Managers often use more than one style of leadership depending upon the situations. They behave differently at different times. There is a variety of leadership styles that differ on the basis of motivation, power, degree of supervision, orientation towards work and people etc.

Some important leadership styles are described below:

I. Styles Based on Motivation:

There are differences in the ways leaders motivate people.

On the basis of employee motivation, leaders apply two basic styles:

1. Positive Leadership:

In this style the leader emphasizes rewards, recogni­tion, pride, and praise to get the work done. Positive leader thinks that rewards will make employees happy and these satisfied persons will work harder. This leadership style assumes that people will be motivated to perform their jobs effectively to the extent to which they are rewarded.

Some of the positive motivators the leader uses are raise in wages, promotion, delegation of authority, participa­tion allowed in decisions, credit for work, welfare etc. This style achieves higher job satisfaction and performance.

2. Negative Leadership:

If emphasis is placed on fear, force, threats or penal­ties, the leader is applying negative style of leadership. It consists of forcing people by giving those punishments such as loss of job, reprimand, demotion, or a few days off without pay. This style may yield good results in many situations, but its human costs are high. It creates a hostile state of mind. It negatively affects loyalty and cooperation. Managers using this style are bosses more than leaders.

II. Styles Based on Use of Authority:

The following leadership styles are classified on the basis of ‘how leaders use their authority’ to get the work done:

1. Autocratic Style:

This is also known as authoritarian or directive style. In autratic style of leadership, the leader makes all the decisions himself without consulting his subordinates. He initiates all activity and issues commands and orders to subordinates. He expects them to be obeyed. He assumes full responsibility for all actions.

Characteristics:

1. He centralizes authority of decision making in himself. He takes full authority and assumes full responsibil­ity.

2. He commands and expects unquestioned compliance.

3. He leads by withholding or giving rewards and punish­ments.

4. Communication tends to be only in one direction, from the leader to followers.

5. Rewards go to them who conform and obey the in­structions.

6. He dictates policy matters as well as techniques of work. He maintains strict supervision and control.

7. He remains aloof from active group participation.

8. He tends to be “personal” in praise and criticism of the work of each member. He is dogmatic.

9. Subordinates have no scope to influence the decisions of the leader. He believes in one-man show.

2. Democratic or Participative Style:

A democratic style of leadership is one in which managers involve their subordinates in decision making. Leaders decentralize authority. They consult with subor­dinates on proposed actions or matters and encourage participation from them. They give subordinates an active share in decision making.

A democratic leader keeps subordinates informed of the true situation in organisation. He leads by ‘mutual consent’ rather than by use of formal authority. He has a high regard for people. He involves them in planning and execution of work. He shares his leadership responsibilities with his followers. A democrat­ic leader never “bosses” over his subordinates and allows sufficient freedom to work.

3. Free-Rein Style:

In this style, the leader attempts to exercise very little control or influence over group members. He depends mostly upon the group to establish its own goals and solve its own problems. Subordinates are given a high degree of freedom in their operations. They train themselves and provide their own motivation. Free-rein leader avoids power and responsibility.

The entire decision making authority is entrusted to subordinates. The leader’s role is to provide informations and to act as the representative of the group to outsiders. This type of leadership is effective only when the group members are highly knowl­edgeable, independent, motivated and fully dedicated to the firm.

III. Styles Based on Behaviour of Leader:

Rensis Likert and his associates at the University of Michigan compared high-performance groups to low- performance groups. They felt that the basis for distin­guishing leadership style is the manager’s perceptions about such factors as motivation, communication, direc­tion of information flow, control, and how goals are set. They concluded that one best way to lead is to be either task-oriented or person-oriented. The leader’s behaviours may reflect primary concern for the work or for the people who are doing the work.

Hence, two styles can be noted:

1. Job-Centered Leadership:

It is also referred to as task-oriented style. It is concerned with the design of work, planning, scheduling, coordinating work activities, development of incentives, and providing the resources to increase productivity. The job-centered leader sets the standards of performance and structures the work. He plans each worker’s job tasks and job outcomes. This style is most effective for obtaining higher production.

2. Employee-Centered Leadership:

It is concerned with ‘people’ and their needs. The employee-centered leader treats subordinates as per­sons. He focuses on improving performance through better human relations. He allows maximum participa­tion, listens to group members, remains friendly and approachable, helps subordinates with personal prob­lems, and stands up for group members.

He avoids close supervision, actively considers the needs of employees, and encourages them to grow and develop. This style has been described variously as a style that consideration, shows concern for people, is relation-centered, democrat­ic or permissive.

IV. Two Dimensional Styles of Leadership:

In 1945, a group of Ohio State University researchers made an exhaustive study of leadership styles.

According to their findings, the two key styles of leadership are as under:

1. Initiating Structure:

This style includes scheduling work, deciding what is to be done, maintaining standards of performance, and providing direction to subordinates. The leader organizes and defines group activities and his relation to the group.

He defines role of each member, assigns tasks, plans ahead, and pushes for production. It is “task-oriented” behaviour.

2. Consideration:

It is the “relationship-oriented” behaviour of a leader. It is helpful in maintaining good relationships with sub­ordinates. It includes behaviour indicating mutual trust, respect, and warmth between the supervisor and his group.

The study group also concluded that:

(a) These two styles (behaviours) are independent. Hence, a leader can be more or less person-oriented (consid­erate) and more or less task-oriented (initiating structure) because each style is a separate dimension. Thus, any combination of these two style is possible.

(b) There is no one best style of leader behaviour for all situations.

(c) The highest performance was associated with leaders who ranked strongly in both styles.

V. Styles Based on Management Systems:

Rensis Likert with his associates also studied the patterns and styles of leaders and managers for three decades. During his research, Likert has developed four basic systems of management style.

These are described below:

1. System 1 Management – Likert described the system 1 manager as “exploitive-authoritative”. He is highly autocratic, has little trust in subordinates, limits decision making at the top, avoids upward communi­cation, and motivates people through fear.

2. System 2 Management – It is called “benevolent au­thoritative” style. This kind of manager has a patron­izing attitude towards employees. He invites some ideas from subordinates, allows some delegation, and motivates by rewards and some use of punishment.

3. System 3 Management – It is referred to as “consul­tative”. Leaders using this style have substantial but not complete trust in employees. They usually invite ideas and opinions, allow many specific decisions to be made at lower levels, and act consultatively in various matters.

4. System 4 Management – Likert described it as “par­ticipative group”. System 4 leader has complete trust in subordinates in all matters. He is highly employee- centered. He provides supportive behaviour, uses group methods of supervision, sets high performance goals, and serves as a source of expert knowledge for subordinates.

Likert found that those managers who applied the System 4 style to their jobs had greatest success as leaders.

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Leadership Styles in Management (Top 3 Types): With Examples

An effective leader recognizes that there are variations in leadership styles.

The three basic styles are authoritarian, democratic, and free rein-

i. Authoritarian leaders make decisions on their own, without consulting others.

ii. Democratic leaders involve their subordinates in making decisions. (An autocratic sales manager, For example- provides sales personnel with specific sales quotas, while a democratic manager allows them to participate in setting the quotas.)

iii. Free-rein leaders believe in minimal supervision, leaving most decisions to their subordinates.

1. Authoritarian (Autocratic) Leadership:

Authoritarian leaders like to retain authority They expect that the team members shall comply with then decision. They are not concerned with the attitude or thinking of the group members. They are usually task-oriented. An authoritarian leader commands his team and expects compliance. Such types of leaders use punishments and rewards to achieve the objectives.

Authoritarian leadership is negative because the subordinates remain uninformed, they fed insecure and remain afraid of the leader. In authoritarian leadership, there is a tighter control and supervision over the persons (i.e. sub ordinates).

Authoritarian leadership succeeds where subordinates shirk work but want security. Subordinates do not want to take initiative. The Decisions can be taken quickly. Some people who simply work for fear of punishment remain disciplined and devoted towards the tasks given to them. It is felt that this technique is old-fashioned, but it works well in many cases.

2. Democratic (Participative) Leadership:

Democratic leadership is most popular today. The leader discusses and consults his subordinates. He draws ideas from them supervises and lets them help set policy. A democratic leader promotes participation of subordinates and develops strong team work.

All policies come out of group discussions, the subordinates being constantly encour­aged and assisted by the leader. Actually the decision emerges out of the subordinate Soup itself. Subordinates know the long term plans on which they are supposed to work thus they are kept well informed. A democratic leader is objective or fact-minded. This praise and criticism; he tries to be a regular group member in spirit without doing too much of the work.

Democratic leadership motivates subordinates to work and improves their attitude towards work, promotes healthier relations between workers and management, mini­mizes employee-grievances, raises the employee-morale.

Democratic leadership works very well if the subordinates (also) feel their responsibility, tend to be reasonable and do not take undue advantage of the democratic leadership.

3. Free Rein or Laissez Faire Leadership:

This is the most difficult to use type of leadership. A Free Rein Leader does not lead the subordinates but leaves them entirely to themselves; the responsibility for accomplishing most of the work lies on the shoulders of the subordinates. The subordinate group establishes its own goals and solves its own problems.

The leader is simply a contact man, he ignores leader s contribution, he intervenes least and avoids-power. The leader depends upon subordinate’s sense of responsibility and good judgment to get the work done.

Free Rein leadership can work only if the subordinates are highly educated, brilliant and they possess good sense of responsibility.

Which of the Leadership Style is Most Effective- Autocratic-Democratic Continuum:

One of the first studies of leadership behaviour was done by Kurt Lewrn and his associates at the University of Iowa. In their studies, the researchers explored three leadership behaviours or styles- autocratic, democratic, and laissez faire. Auto­cratic style describes a leader who typically tends to centralize authority, dictate work methods make unilateral decisions, and limit subordinate participation.

The democratic style of leadership describes a leader who tends to involve subordinates in decision m a king dele gate authority, encourage participation in deciding work methods and goats, and use feedback as an opportunity for coaching subordinates. Finally, the laissez faire style leader generally gives the group complete freedom to make decisions and complete the work in whatever way it sees fit. Lewin and his Iowa associates wondered which of these three leadership styles was the most effective.

In order to answer this question, the researchers trained different adults to use each of these styles in leading groups of young boys from local boys’ clubs. They quickly discovered that the laissez faire style was ineffective on every performance criterion when compared to both the democratic and autocratic styles.

Quantity of work done, however, was equal in groups with autocratic and democratic leaders. But work quality and group satisfactions were higher in the democratic groups. The results seemed to indicate that democratic leadership style could contribute to both good quantity and quality of work.

Had the answer to the question of most effective leadership behaviour been found? Unfortunately, it wasn’t that simple. Many researchers conducted various studies and have tried to find out the best suited leadership style.

Approaches to Leadership and Managerial Styles:

An intriguing question is – why do some people, but not others, become effective leaders? Many answers have been proposed, but two have received the most attention. These perspectives suggest, respectively, that effective leadership is largely a function of either the traits possessed by individuals, or the patterns of behaviour they demonstrate.

Trait’s approach assumes that great leaders possess some key traits that set them apart from most other human beings. Again there are two theories on this line. One, the Great man theory, suggests that these traits are inborn and leaders are the person’s bora to lead. The other theory believes that these traits can be identified and developed to transform the people into good leaders.

In Behavioural approach researches shifted their focus to the behaviour of great leaders and concluded that it is behaviour of a person that makes him an effective leader. Prominent in the behavioural approach is the notion that leaders are not born but can be trained.

The above two approaches to leadership concentrate their attention to the traits and behaviour of the leader only. They disregard all other factors like the class of followers, culture of the organization, economic conditions, etc. Over the period of time, it was observed that there is no ultimate set of traits and behaviour to form a good leader.

Different leadership styles fit in different situations, and to get the goal of effective leadership, one has to opt for a leadership style, which is best suited in the given circumstances. As a resultant to this thought situational/contingency approach to leadership emerged.

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Leadership Styles in Management: Top 6 (Six )Types of Leadership Styles

The leadership styles are also known as ‘Leadership Techniques’. Leadership style denotes the manner in which the leader behaves while using his power and influence in relation to the group and the task situation. It refers to a leader’s behaviour.

Behavioural pattern which the leader reflects in his role as a leader is often described as the style of leadership. It is the result of leader’s philosophy, personality, experience and value system. It also depends upon the type of followers and the organisational atmosphere prevailing in the enterprise.

Following are the important classification of leadership style:

(1) Charismatic Style.

(2) The Autocratic Style.

(3) The Free-rein Style.

(4) The Participative Style.

(5) Organisational Behaviour Modification (OBM).

(1) Charismatic Style:

This type of leadership style commands great following by virtue of his mystical and magnetic properties. He tends to be highly energetic and extrovert. He is quick in taking initiatives and in exploiting opportunities. He shows high emotional involvement with the aspirations and needs of his followers, argues their enthusiasm and inspires them to be loyal and committed to the leadership.

He strives to gain their full confidence and influences them in such a way that they will do whatever he wants. He follows a highly unstructured open, dynamic and flexible approach in problem solving. He believes in adhocism and tends to be piecemeal in his behaviour. He mostly depends on his personality for getting things done.

(2) The Autocratic Style:

This is also known as authoritarian, directive or monothetic style. There are three types of autocratic leaders – (a) Strict autocrat; (b) Benevolent autocrat; and (c) Incompetent autocrat. Under this style of leadership, all decision-making power in centralized in the leader who allow a very nominal role or does not allow at all, to his sub-ordinates in the decision-making process. Leader adopting this type of style stresses his prerogative to decide and order and the sub-ordinate’s obligation to do what they are told to carry out.

He does not give sub-ordinates the freedom to influence his thinking, decision or behaviour. He does not care to know the feelings of them. He does not respect their personality. This type of leadership mars employee’s motivation, morale and productivity. Therefore, such leaders are generally disliked by their sub-ordinates but some employees prefer such superiors as many of them feel comfortable under conditions of strong departure of their boss.

(3) The Free-Rein Style:

This type of leadership style is known as “Permissive Style of Leadership” in which there is the least intervention by the leader. The group operates entirely on its own under such leadership. Further, this style of leadership is just like ‘Laissez Faire’ Policy.

Here the leaders completely surrender all decision-making power to the group or their subordinates. The leader completely abdicates his leadership position, leaves all responsibility and most of the work entrusted to him to the group which he is supposed to lead.

(4) The Participative Style:

This is also known as “Democratic Leadership Style”. In this the subordinates are allowed active participation in the decision-making process. The leader adopting this style does not abdicate his authority and responsibility, but actively participates and helps the group in coming to a decision. Such leaders believe in sub-ordinate centred leadership. They are friendly to their sub-ordinates, they get approval from them and they favour group decision-making.

This leadership is preferred by workers and progressive managers both. This is “employee-oriented leadership style” giving due importance to the needs, motives and feelings of the employees. Such group is very adaptive and responsive. They welcome any change in work, situations and conditions etc.

(5) Organisational Behaviour Modification (OBM) Style:

This style was popularized by Fred Luthans. The technique is refined form of the time- worn “Carrot and Stick” style of supervision. This approach promotes desirable behaviour by rewarding them for wrong activities or wrong behaviour.

(6) Paternalistic Leadership Style:

Under this style, the leader assumes that his function is paternal or fatherly. His attitude is that of treating the relationship between the leader and his group, as that of family with the leader as the head of family. He works to help, guide, protect and keep his followers happily working together as members of a family.

He provides them with good working conditions, fringe benefits and employee services. This style has been successful particularly in Japan because of its cultural background. In the modern complex, industrial relations system, this attitude may not result in maximum motivation. Instead of gratitude, it might generate resentment among the sub-ordinates.

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Leadership Styles in Management: Classified on the basis of their Attitudes, Approaches and Behaviour

Leaders may be classified on the basis of their attitudes, approaches and behaviour.

The following are the major leadership styles:

1. Formal & Informal- Formal is deliberate & conscious. Informal leader is nothing to do with official relationship.

2. Autocratic or Authoritarian- Who centralizes the authority for decision making-

(a) Strict Autocrat – negative motivation approach

(b) Benevolent Autocrat – positive motivation approach

(c) Manipulative Autocrat – who makes the subordinates feel that they are participating in decision-making process even though he has already taken the decision.

3. Participative or Democratic leader- Decentralizes the decision making process & authority

4. Laissez Faire or Free-rein Leader- Entrusts the decision-making authority to his subordinates. (Permissive style of leadership)

5. Paternalistic leader- His function is paternal or fatherly.

6. Rules Centered leader- Concentrates mostly on rules and regulations, violations, punishment, etc.,

There are several types of leadership styles. The behaviour exhibited by a leader during supervision of subordinates is known as leadership style. The term style refers to the way the leader influences the followers.

The following are the major leadership styles:

1. Autocratic Style or Authoritative Style:

(i) It is a work centered or leader centered leadership style.

(ii) Leader keeps all the authority with him.

(iii) He structures the complete work situation for his employees.

(iv) There is no participation of subordinates in the decision making process.

(v) It is do what I say approach.

(vi) He tolerates no deviation of any kind.

(vii) He thinks that he is the only competent and capable individual and that his subordinates are incapable of guiding themselves.

(viii) He expects obedience and adherence to his decisions.

(ix) He assumes full responsibility for decision making, for initiating action, and for directing, motivating and controlling his subordinates.

(x) Subordinates fully depend on his and fully unaware of goals of organization.

(xi) He needs little time to take decisions as he does not consult anybody else. It is suitable in developed situations.

(xii) There are two different types of autocrats, viz., tough autocrat and benevolent autocrat.

(xiii) Tough autocrat views leadership as a matter of issuing orders. His followers must obey them unquestioningly.

(xiv) It generates a sense of insecurity and a lack of confidence in the employees.

(xv) This will lead to poor human relations.

(xvi) Benevolent autocrat tries to create a climate in which employees can not take any action without his prior approval.

(xvii) He stifles creativity and innovative ability in his subordinates.

(xviii) He resent who are disloyal.

(xix) This is not suitable when the leader has to deal with strong independent and mature employees who want to participate in a decision making process of the group.

2. Democratic or Participative Leadership:

(i) It is group centered leadership.

(ii) Decisions are taken by leader after consulting his followers and after their participation in the process.

(iii) He encourages subordinates to function as a social unit and makes full use of their talents and abilities.

(iv) He uses as little as authoritarian control as possible.

(v) He cultivates the decision making abilities in his subordinates and encourages them to increase their abilities to exercise self-control.

(vi) He helps the subordinates to assume greater responsibility in future.

(vii) It instills a confidence and morale in employees and gives a feeling of self-esteem.

(viii) But it can be very time consuming.

(ix) Sometimes participation can mean that little or no planning gets done at all, which can result in a situation getting out of control.

(x) When the ideas of members are rejected, they may feel alienated.

(xi) There are two types of participative leadership, viz., democratic leader and consultative leader.

(xii) Democratic leader is one who involves in group discussions and decisions on policy on the basis of the technical advice supplied by the leader.

(xiii) Consultative leader is one who requires a great deal of involvement from employees but makes it clear that he alone can make final decisions.

3. Leissez Faire Leadership or Free-Rein Leadership:

(i) It is group centered leadership.

(ii) It is also known as ‘no leadership at all’.

(iii) Leader completely delegates authority in to the hands of the subordinates.

(iv) Leader expects his subordinates to assume responsibility for their own motivation, guidance and control.

(v) Discipline and control are not enforced on the hope that employees will control themselves.

(vi) Leader gives little direction.

(vii) There is complete freedom in decision making.

(viii) Appraisal of the performance of subordinates is made.

(ix) It is suitable in companies where there is a compatibility of goals of an organization with that of individuals.

(x) It is suitable where subordinates are thoroughly communicated and are acceptable to the subordinates.

(xi) It is suitable when the leader- wants delegates to subordinates and has high degree of confidence on subordinates.

4. Bureaucratic or Rule Centered Leadership:

(i) Leader relies highly on rules, regulations, procedures and policies.

(ii) Administration is series of routine actions.

(iii) Rules specify the obligation of the subordinates and expects from them to do particular things in specific manner.

(iv) There is no participation or initiative on the part of subordinates.

(v) Rules lead to red tapism.

(vi) There is too much paper work.

(vii) There is too great a desire to play safe.

5. Expert Leadership:

(i) The fundamental point is the leader’s knowledge and experience, not the age.

(ii) One assumes the role of the leader regardless of his, sex, physical or other attributes.

(iii) It depends on approximate mix of skills and the needs of others in a situation.

(iv) It is successful when group is convinced that specific expertise is necessary or the survival and performance of the group.

(v) This leadership may not be successful when an individual is no longer recognized as an expert; and when the situation changes to routine or to one calling for a different kind of expertise.

6. Leadership Continuum:

One of the early situational theories was developed in 1958 by Robert Tannenbaum and Warren Schmidt. They, however, modified and refined theory in 1973. They placed leadership behaviour on a continuum, which consists of a range of styles or patterns.

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