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Leadership
The way in which managers deal with workers is known as
their leadership style.
A good definition of leadership would as follows:
‘Where a person influences and directs the performance of a
group of employees in achieving the goals of the organisation’
Philip Allan Publishers © 2015
Leadership styles
Although the way managers manage will vary from individual
to individual, there are three main leadership styles that are
identified in business:
• authoritarian leadership
• democratic/participative leadership
• laissez-faire leadership
Philip Allan Publishers © 2015
Authoritarian leadership
Also known as autocratic leaders, they are strict and
tell workers what to do. They have a high level of control: they make all the
decisions themselves and expect no input from workers.
Pros
• Quicker decision-making process
• Workers are closely supervised so less mistakes.
Cons
• Employee motivation can be low.
• Labour turnover can be high.
• Less creativity due to lack of worker input.
Philip Allan Publishers © 2015
Democratic leadership
Also known as participative leadership, where workers will contribute in the
decision-making process. There is considerable scope for involvement and
participation.
Pros
• Worker involvement encouraged, which can lead to better decisions.
• Motivation is high and labour turnover low.
Cons
• Consultation with staff can be time consuming.
• Should staff be involved in some areas of the business e.g. sensitive or
more complex issues?
Philip Allan Publishers © 2015
Laissez-faire leadership
These leaders leave their colleagues to get on with their work without
supervision or control. The leader will often set boundaries and a given
task and not monitor until it is complete.
Pros
• Employee motivation is high.
• Workers are often most creative with this form of management.
Cons
• Manager control is required at times and this lack of involvement can
lead to mistakes or failed projects.
Philip Allan Publishers © 2015
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