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Leadership Styles for a Successful Business

Monday, April 16, 2018

Effective leadership is an key ingredient for the success of your business as it has a huge impact on a company’s performance. Business author David Goleman outlined 6 different leadership styles that one can embody in order to build a successful business.

The Pacesetting Leader

Leaders who have high standards are suitable to apply this leadership style as it provides high challenge and result. Pacesetting leaders are active in providing examples and directing guidance to perform tasks as expected. This type of leader is suitable for a team with high competence and motivation. If your company team members have low competence and motivation, this type of leadership style is less suitable as it may lead to a poor performance by the company.

The Authoritative Leader

This leadership style tends to mobilize the team toward a vision and only focus on the ultimate goal. The Authoritative Leader is best used when your team needs a new vision because things have changed. This leadership style is most often used in tech companies where change often occurs quickly. The Authoritative Leader is less appropriate to use when leaders work with team members who have more knowledge than the leaders.

The Affiliative Leader

This style of leadership is more inclined to building a good relationship between the leader and the team. The Affiliative Leader works best when the team has gone through high pressure, when the team needs motivation or when there is conflict potential within the team. This leadership style is not good if used continuously, because it can cause dependence on praise and lead to mediocre performance on your team.

The Coaching Leader

The Coaching Leader finds the strengths of each team member and develops them. Leaders with this type will pay more attention to the problems faced by the team and provide direction. It works best when leaders want to enhance the personal skills of team members to make them more successful. The Coaching Leader is less suitable if team members do not want to change and learn, or if leader has a lack of skills for coaching.

The Coercive Leader

This leadership style tends to give firm orders and demand compliance from team members. The Coercive Leader is most effectively used in times of crisis or circumstances that require quick action. This type will be more effective when used sparingly, if you use it too much the flexibility and creativity of your team will decrease.

The Democratic Leader

The Democratic Leader accepts feedback and receives quality fresh ideas from all team members. By receiving feedback from team members, they will feel valued and able to contribute more for the company. The Democratic Leader is less suitable to be used in emergency situations. The weakness of this leadership style is a lack of concrete action by the leader which can lead to decreased loyalty of team members.

Finding the Best Leadership Style

To determine which leadership style works best, you should consider several factors:

  • Find the leadership style that fits your company's mission. If you rely on a team to innovate with you, Democratic leadership style is more appropriate than Coercive leadership style, especially if you need new ideas and innovative inputs.
  • Customize the leadership style that best suits your team style. If you know that your team has good skills, then Coaching leadership style need not be urgently applied. If you have a strong sense of how a job should be done, Authoritative leadership style become one of the best options to use. 
  • Put your values and personality into a leadership styles. For example, if you choose to lead with a Coercive leadership style, you can stil be open and honest with team member about your decision and why you made the decision. By doing so you can make your team feel more involved and more insight into what factors might be considered in the next decision.

Read Also : 5 Books for Better Business Insights

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