Different Leadership Models for a Business
In order to ensure the success of a business, it is important to understand the difference between directing and leading. Directing is when the manager’s order, command and oversee the performance of their employees to achieve the pre-set goals. It focuses on the completion of business tasks and ignores other factors. On the other hand, leading is more inclined towards influencing employee behaviour. It aims to achieve the pre-set goals along with motivating employees. According to George R. Terry, a leader breathes life into the group and motivates it towards goals. Dynamic and effective leadership is the major attribute of a successful organisation. Hence, the manager should be a leader, and not a dictator or a director.
However, being a leader only is not sufficient for the success of the business. The manager should be capable of changing leadership styles according to the needs of the team. Sometimes the team needs someone to lead the way. Sometimes teammates are energetic and ready to take things in their hand. Sometimes they need a new vision. So, a manager should adopt appropriate leadership styles that suit the different situations. This is known as change leadership or situational leadership. According to Goleman’s study of kinetic leadership, it was discovered that a manager’s leadership style was responsible for 30% of the company’s bottom-line profitability, which shows how important it is for a manager to adopt an appropriate style of leadership.
Here are five different leadership models- longer term behaviour that can be adopted by managers, as well as the situations that they best suit in:
- Servant leadership defines the leader’s role as a person responsible for the resources provided by the organisation. A servant leader focuses on serving its employees and the resources provided by the organisation. This type of leadership is suitable in situations where the employees are suited to their jobs and they know what to do and how to do it. It is also suited to situations where there is a high need for innovation and creativity. It is the best fit to situations where employees are experts and know more than the leader. Leaders are only there to ensure resources are available to the employees and check if all needed skills are there to the workers.
- In transformational leadership, leaders have high emotional intelligence and high integrity. They also have good conflict resolution skills. In this type of leadership model, leaders try to transform their team members by inspiring them, setting clear goals, communicating well, etc. This style is best when the team needs a new vision or the employees lack skills. It is also suited to situations where the employees are an important part of the business and it is important to transform them according to the business needs.
- Charismatic leadership model also involves leaders inspiring and motivating employees like transformational leaders. The only difference is that transformational leaders focus more on transforming their team members whereas charismatic leaders focus on their own aims and do not try to change anything. It is best when the business needs a new vision but the employees are ‘on the right track’.
- Bureaucratic leadership model is where leaders follow rules and make sure that the employees follow all the procedures precisely. This is best suited when serious safety risks exist at work or the employees are following routine tasks and there is no room for innovation and creativity. It also fits best when the employees are already skilled and motivated and the employer wants quick results.
- Transactional leadership model involves leaders who clarify everyone’s roles and responsibilities. These leaders focus a lot on the completion of everyone’s duties and often end up ignoring creative or knowledge-based work. It is best suited in the time of crisis situations, e.g. a takeover or a disaster. It is also effective when all other ways have failed.
If the manager chooses the leadership style according to business situations, then this would ensure the success of the business.