The Types Of Leadership In Business

Companies often organized hierarchically. Is a reality. Almost all medium and large corporations have enlisted employees, middle managers and CEOs, besides shareholders and other charges. Each of these intermediate or senior managers lead their employees through one or more styles of leadership. Each has its advantages and disadvantages, and generate certain dynamics and emotions different among subordinates, so they can influence labor dynamics, motivation and productivity.

Let’s see what types of leadership exist and their characteristics.

Leadership Types, Functions and Features

Each leadership style has a direct impact on many labor and psychological aspects of workers. One type of positive leadership is able to improve the productivity of subordinates, as well as increasing their welfare, their affiliation to the company and, of course, corporate profits.

However, a negative leadership can create stress or burnout subordinates, lower self-esteem or discourage productivity, which ultimately can result in a loss for the organization.

These are the types of leadership most commonly described:

Autocratic Leadership

Autocratic leadership allows managers to control and make decisions about many aspects of the strategy and the dynamics of regular work. The autocratic leader has much power and no one can or should challenge their decisions. Therefore, it is not an open and democratic leadership, but is unidirectional: the boss sends, and employees obey orders.

Autocratic leadership allows supervisors to make decisions and set guidelines without the participation of the group. The leader concentrates all power and no one challenges their decisions. It is a one-way exercise leadership, all you have to do is obey subordinates the guidelines set leader.

Democratic Leadership

Also known as participative leadership, its function is to promote participation, enthusiasm and involvement of employees. Dialogue among the group is encouraged to take into account all the views and visions on the reality, although the final decision usually falls to the leader.

Transactional Leadership

Transactional leadership is based on exchange processes between bosses and subordinates. Workers receive awards and incentives to achieve certain goals and benefits leader because sales and income increase. It is based on transactions, i.e., in exchange processes between leaders and their followers. Followers receive awards for their job performance and leader benefits because they fulfill tasks.

Transformational Leadership

In transformational leadership, heads are in a fluid and constant communication with the working group. This improves the relationship and achieve goals at various levels, while the company benefits from several visions and shared by different employees and managers strategies.