The world is changing and the way to organize a company in a hierarchical way too.
The authoritarian management of the traditional boss no longer serves us. It is now obsolete.
Currently there are 5 types of business leadership that you can apply from today to your business and that will help you grow and achieve your goals. Do you want to know more about them?
Contrary to what many people think, anyone can develop the skill of business leadership.
It is directly related to the figure of the leader, but not necessarily to the figure of the boss because, despite what many people believe, they are not the same.
The boss uses his rank and power to execute it in an authoritarian and unidirectional manner.
While the leader motivates employees and directs them without imposing his ideas.
That is why a good business leadership exercises its functions based on three key points:
- Teamwork
- Motivation
- Organizational structure
This leadership style is fundamental because it allows you to delegate tasks, encourage growth and empower employees.
But in order to achieve this, it is essential that you know the different types of business leadership to discover which one makes you feel more comfortable with to apply it to your company.
What are the benefits of good business leadership?
Good business leadership comes with a number of advantages that you may want to consider for your own business:
- Have motivated employees.
- Reduce absenteeism and presentism at work.
- Increase productivity.
- Improve the work environment and teamwork.
- Increase turnover and profits.
- Improve brand image both internally and externally.
- Achieve short, medium and long-term goals.
- Effectively solve problems.
- Improve business strategy and planning.
- Boost creative results.
Were you aware of them? Because now you can know which are the types of leadership that help you achieve them.
What are the types of business leadership?
There are currently 5 types of business leadership.
Each of them has its own consequences, whether labor, psychological and on the worker himself.
That is why knowing and differentiating them is so important.:
- Laissez-faire leadership.
- Democratic leadership.
- Autocratic leadership.
- Transactional leadership.
Let’s see them one by one:
Laissez-faire leadership
These types of leaders work in a positive way and trust in what their employees know how to do.
They are aware that their workers are prepared to perform their tasks since, otherwise, you would not have asked for them.
As their name suggests, “they have their own autonomy.”
Therefore, it is characterized by giving freedom to employees to perform tasks as they find most practical.
What counts here is the results and not the procedure.
But, beware, this does not mean that they stay on the sidelines, they advise and guide, but they do not impose their criteria.
The main consequence is that it increases the motivation of the team and they become more effective.
Democratic leadership
Leaders who apply this typology are defenders of the relevance of the involvement of their employees.
They promote participation and generate in them a peculiar enthusiasm since, when they give their opinions, they are taken into account.
Here it flees from authoritarian attitudes and pulls more towards stimulating internal communication.
Teamwork acquires a lot of importance and the opinions of each and every one of them.
Yes, the final decision rests with the person in charge, but executing this type of leadership implies a broader vision and an improvement in it.
Autocratic leadership
This kind of leadership is the contrast of the previous one.
In this type, the bosses are the ones who flaunt and demonstrate their power without anyone being able to show disagreement with the decisions.
It is also not allowed to express opinions.
This type of leadership is negative, not only because it is reminiscent of a dictatorial style, but also because it generates stress, low self-esteem or reduced productivity in employees.
Here the boss rules and the workers obey orders.
And therefore their communication is one-way.
In other words: run away from this kind of leadership.
Transactional leadership
This type of leadership works thanks to a series of transactions.
It is normally based on the exchange of economic incentives.
It rewards a job well done or the achievement of its objectives.
In this type of leadership, both parties benefit: on the one hand the worker thanks to the fact that he sees his effort rewarded and, on the other, the leader motivates his subordinates by achieving growth in sales and income.
It is a quite positive style since it increases the feeling of belonging to the company, productivity, work environment and economic benefits.
Everyone wins with this kind of leadership.
Transformational leadership
Finally, the transformational leader focuses on the human capital of the company.
In other words: the employees.
He is aware that transformation is only possible thanks to the commitment of workers.
Trust them and allow for smooth communication with bosses.
In this type of leadership, the creativity and participation of all members of the company is encouraged. You are not afraid to face risks and it is about motivating and stimulating employees thanks to a two-way trust.
How to enhance teamwork thanks to good business leadership?
Business leadership is not only reflected in the day to day in the office.
Results can also be obtained thanks to Team Building techniques.
In Human Towers we work to enhance leadership and companionship in a healthy way thanks to the figure of the Castells and the castellers.
If you would like to start working on a better communication that allows you to achieve the desired goals with your work team, you just have to send us a message by clicking here and we will give you all the information you need.