Leadership Styles and Employee Performance

Introduction

Leadership refers to a social position of influence, which allows an individual to mobilize a group of people and collaborate toward accomplishing common goals. As a result, a leader is responsible for organizing and guiding individuals with common interests toward achieving their goals. On that account, the strategies adopted by a leader are critical in overall outcomes because they determine the dedication and motivation of team members in delivering their obligations. Throughout the history of management, leaders have come up with various leadership styles, proven to assist in the better organization in complex business environments, characterized by notable dynamics. As a result, the following essay discusses the five common types of leadership styles and the benefits of their application to ensure positive outcomes.

Authoritarian Leadership Style

Authoritarian leadership is an approach adopted by leaders seeking to establish strict regulations, fixed expectations, and defined outcomes. Therefore, authoritarian leadership adopts an approach where the leader assumes sole responsibility for activities and is accountable for any errors, since all individuals report directly to them. Authoritarian leadership is specifically essential in situations where time is constrained since it facilitates more efficient resources and time management. However, authoritarian leadership approaches are more effective when a leader has unmatched knowledge of the subject topic and the initiatives in place. Moreover, they are applicable when a team requires clear guidelines on approaching specific issues (Reunanen & Kaitonen, 2017). Most leaders who adopt authoritarian leadership styles are strict, thus exposed to increased resistance and opposition from the workforce. Additionally, authoritarian leadership can diminish a group’s motivation and input since they are not allowed to make critical decisions. Nonetheless, authoritarian leadership makes implementing plans easier and assures consistent results.

Participative Leadership Style

Participative leadership adheres to the tenets of democracy and equal acknowledgment of opinions provided by individuals in the team. Thus, participative leadership approaches encourage the involvement of all individuals in the decision-making process, allowing the leader to have the final say in the process (Raveendran & Gamage, 2018). As a result, the approach allows all team members to feel valued and respected, which translates to higher levels of motivation and job satisfaction. Unfortunately, conflicts within the group can result in clutter and time-consuming processes since it might be difficult to agree. The main advantage of the participative leadership style is its ability to leverage the skills, experience, and ideas of collective minds (Demirtas & Karaca, 2020). Therefore, increased participation can help build a focused and stronger team. However, leaders might have a hard time asserting their authority due to increased communication failures. Moreover, data and security issues may arise in cases of critical information sharing.

Transactional Leadership

Transactional leadership approaches to leverage a leader’s and team’s transactions in the form of punishment or rewards to achieve organizational outcomes. In transactional leadership, the leader sets specific goals and informs the teams of the benefits they will receive for their success and compliance. Thus, it adopts a give-and-take approach where a leader is concerned with establishing detailed routines that allow staff to work with each other and deliver on project goals and responsibilities comprehensively (Raveendran & Gamage, 2018). In the process, a leader can encourage cultural and transnational changes in the organization’s processes to achieve more efficiency and increase output (Reunanen & Kaitonen, 2017). The advantages of transactional leadership techniques include increased employee productivity and motivation. Additionally, transactional leadership styles eradicate decision-making barriers by allowing the leader to assign responsibilities and create awareness about all individuals’ responsibilities towards achieving the set objectives. However, this approach does not support innovation because it does not allow staff and team members to contribute their ideas. Moreover, it does not support employee development since it creates followers and not leaders.

Transformational Leadership Techniques

Transformational leadership is a form of leadership where a leader takes the initiative to inspire their subordinates by exposing them to a clear vision and encouraging them to achieve milestones towards goals using effective and efficient solutions. Compared to other leadership approaches, transformational leadership obligates a leader to engage in the staff development process by acting as the role model for the intended vision (Raveendran & Gamage, 2018). The advantage of transformational leadership is that it encourages higher employee retention since the leaders place exceptional value on the input and output of employees (Demirtas & Karaca, 2020). Moreover, transformational leadership increases team members’ motivation since they feel like part of the company. Moreover, it does not adopt coercive approaches, thus encouraging dedication and increased participation. Unfortunately, this approach requires consistent motivation, thus putting a leader under pressure to meet obligations.

Conclusion

Adopting the appropriate leadership approaches in organizations is critical to its success because it allows leaders to foster long-lasting relationships with their teams and create a culture that assures sustainable benefits. However, the most applicable leadership approach depends on a variety of factors, including the main aim of the project’s initiatives and the strategies required to achieve set outcomes. As a result, leaders should always assess the needs of their teams to determine whether authoritarian, participative, transformational, or transactional leadership will yield the best results. In addition, leaders can integrate these approaches to maximize benefits.

References

Demirtas, O., & Karaca, M. (Eds.). (2020). A Handbook of Leadership Styles. Cambridge Scholars Publishing.

Raveendran, T., & Gamage, A. S. (2018). Impact of leadership styles on employee performance: a review of literature. Journal of Business, 5, 2.

Reunanen, T., & Kaitonen, J. (2017). Different roles in leadership styles in modern organization. In Advances In Human Factors, Business Management, Training And Education. Springer, Cham.

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StudyCorgi. 2023. "Leadership Styles and Employee Performance." March 28, 2023. https://studycorgi.com/leadership-styles-and-employee-performance/.

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