In order for a business to be successful and competitive the leader must keep employees engaged in the company. Business does not thrive unless there is a leader who exemplifies emotional intelligence. Managers want to make sure employees feel compensated for their hard work, but also making sure the company is not putting themselves in a hole on the balance sheet. Businesses have fallen due to lack of knowledge about how to keep employees interested so that they can be productive for the business. Leaders must understand and create procedures that are both positive and beneficial to the business. The success that a business can have depends on the leadership style that is ...view middle of the document...
It is important to understand that even though employees are encouraged to provide feedback, ideas, and suggestions, leaders are the ones that make the ultimate decision. Participative leaders generally have a more content workforce, since each individual has input into decision-making.
Delegative leadership effects this style, also called laissez-faire leadership, is typically considered the least effective option. In contrast to the other primary styles, delegate leaders barely make decisions, leaving this function up to the group (Deshmukh). These leaders rarely offer guidance to the team and delegate the decision-making process to trusted team members. With few advantages, this style tends to create some disadvantages. Job descriptions and lines of authority tend to become unclear and confusing. A loss of motivation and positivity often accompanies the confusion of team members.
Corporate culture effects also called organizational culture, corporate culture defines "the way we do things." Leadership styles have strong effects on corporate culture because employees tend to behave in ways that mimic their leaders (Druskat). Staff also subconsciously wants to please supervisors and management . Over time, leaders and employees usually become "comfortable" with each other, which can cause some "culture friction" when new leaders take over. Every corporation, regardless of size, has a culture (Druskat). It can help or hurt operations, often dependent on the strength and efficiency of the people leading the company.
Effects of Leadership Styles on Organizations
The culture of an organization is often an outgrowth of the personalities of its leaders. Managers, owners and directors of companies and service groups need to be conscious of the type of leadership they are offering if they want to control the forms of communication and activity that are prevalent in their organizations. Some leaders rule with an iron hand, a methodology that is often referred to as "my way or the highway." Authoritarian leaders tend to create organizations that are hierarchical, tightly run and filled with people who take orders well. Many highly creative and innovative people flee such organizations because they feel constricted (Druskat). Authoritarian leaders can be very effective in emergency situations where quick, decisive action is needed, but their organizations may suffer from a lack of flexibility over the long term.
Leaders who seek the input of their followers and attempt to value each person as an individual can create a very different type of organization than authoritarian leaders. A cooperative leader sees himself as a facilitator of a common goal, and seeks to share both the responsibilities and the rewards (Druskat). Effective delegation of tasks and vision can spread the work load effectively and lead to efficient accomplishment of goals (Druskat). Employees who want a say in how their company is run will respond better to a...