Types of Leadership Styles (DP IB Business Management): Revision Note

The Distinction Between Management & Leadership

• Leadership is about having a vision, sharing that vision with others and providing direction

• Management is the day-to-day organisation of the business, its resources and its staffing

Diagram: characteristics of leaders and managers

Key differences between leadership and management

• Vision vs. Execution

  • Leadership focuses on creating a vision, setting direction, and inspiring others to follow

  • Management focuses on executing plans, organising resources and ensuring tasks are completed on time

• Influence vs. Control

  • Leadership focuses on influencing others to achieve a common goal by inspiring and motivating

  • Management focuses on controlling resources and processes to ensure that objectives are met

• People vs. Processes

  • Leadership focuses on people, their needs, and their motivation

  • Management focuses on processes, structures and systems

• Long-term vs. Short-term

  • Leadership focuses on the long-term vision and strategy

  • Management focuses on short-term goals and targets

• Creativity vs. Efficiency

  • Leadership encourages creativity and innovation

  • Management focuses more on efficiency and productivity

An Introduction to Leadership Styles

• Leadership styles are different approaches to leading and managing a team or business

• They reflect the behaviours and attitudes of a leader towards their team members and influence the organisational culture, productivity and performance

• A successful leader will be able to use a variety of leadership styles depending on the situation, to achieve the best results for their business

Diagram: four common leadership styles 

• The choice of leadership style can be influenced by the business circumstances, as well as the nature and size of the business

Autocratic Leadership

• An autocratic leader is a type of leader who holds absolute power and authority over a business

  • The leader makes decisions without seeking input or agreement from others

  • They typically expect strict obedience and compliance from their subordinates

• Autocratic leaders often have complete control over the decision-making process

  • They set the direction and goals of the business

  • They do not usually consider the opinions, ideas, or expertise of their team members

  • Their decisions are generally not open to discussion or debate

Situations when Autocratic Leadership is Especially Effective

• While autocratic leadership may be suitable in certain situations, it can also have drawbacks, including:

  • Reduced employee morale as workers have no input into decision-making

  • Limited creativity as employees are required to follow strict instructions and are closely monitored

  • Lack of input from team members restricts an important source of problem-solving ideas and innovation

Paternalistic Leadership

• Paternalistic leadership is where a leader assumes a 'fatherly' role towards their subordinates, acting in a protective and authoritarian manner

  • The leader makes decisions for employees while also showing concern for the well-being and development of  subordinates even if it means limiting employees' autonomy and freedom of choice

  • The leader takes on responsibility for the welfare of their employees

    • They may provide guidance, support, and resources to ensure the success of their employees

    • Huawei’s Ren Zhengfei is viewed as a paternalistic leader who has shaped the businesses culture with well-defined goals, employee devotion and absolute obedience in return for highly competitive pay and opportunities for staff to buy shares in the company

• Paternalistic leadership can create a sense of security and support among employees, increasing their loyalty and reducing staff turnover

• It can also be perceived as controlling and limits creativity and innovation within a business

• It may create a dependency on the leader, which restricts personal growth and professional development among employees

Democratic Leadership

• Democratic leaders actively involve employees in the decision-making process and encourage discussion, though they have the final say

  • Consultation, collaboration, delegation and teamwork are common features of democratic leadership

• This leadership style is most effective in organisations with skilled, experienced and creative employees

Evaluation of Democratic Leadership

Laissez-faire Leadership

• Laissez-faire leaders play a minimal role in managing their business team

• Leaders provide little guidance, direction, or supervision to employees, allowing them significant autonomy and freedom in making decisions and completing tasks

• Laissez-faire leadership is most appropriate where leaders are working with a highly skilled and self-motivated team that requires minimal supervision

Evaluation of Laissez-faire Leadership

Situational Leadership

• Hersey and Blanchard's Situational Leadership Model suggests there is no one-size-fits-all approach to leading a business organisation and effective leadership depends on adapting leadership style to the specific situation and the needs of the employees being led

• Leaders must assess the readiness of employees to perform a particular task or achieve a specific goal

  • Readiness is determined by two factors

    • competence (knowledge, skills, and experience)

    • commitment (motivation and confidence)

• Based on this assessment, leaders can adopt different leadership styles to match the situation

Diagram: Hersey and Blanchard's situational leadership model

• The situational leadership model emphasises that effective leaders should be flexible and able to adapt their leadership style based on the needs of their team members

• It encourages leaders to consider the situation carefully and assess the readiness of their followers before adopting the most appropriate leadership approach to maximise performance and development