Leadership Styles and Organization Effects
Abstract
The approach of a leader and their leadership style has a distinct influence and effect on the success of the organization they are a part of. Research has been done, focusing on the various styles of leadership and how it impacts an organizational effectiveness. Reviewing various journal articles as well as other literature, this paper will exam the effects of autocratic, democratic, and laissez-fair leadership styles.
Leadership can be defined as the process that an individual influences those around them or a group of individuals to work toward a common goal. The effectiveness of the leader is dependent on the style of leadership that is utilized as well as the reception of that leadership style. This style and its effectiveness is important to the organization they are a part of. The style of leadership chosen can vary based on the work environment or situation that the organization is in, as well as the outcome desired and those involved in the group needing leadership. The most common types of leadership are autocratic, democratic, laissez-faire, transformational, and transactional. Knowing the differences between these styles as well as what style to use and when will have the most beneficial organizational effect, both in the short- and long-term.
Leadership Styles
Research over the years has shown that there is a direct impact on employee productiveness and leadership style. It also influences the well-being of the employees as well as the success of the employee completing their given tasks (Ahmad, Adi, Noor, Rahman, & Yushuang, 2014). Team cohesion as well as how the team learns, and performance related to learning is all effected by the leadership style that is adopted by the leader (Bucic, Robinson, & Ramburuth, 2010). The authority that is attributed to the leader can also be based on the style of leadership they choose to utilize whether it be autocratic, democratic, laissez-faire, or toxic. A study conducted by Gregersen, Vincent-Hoper, and Nienhaus (2014) showed that different leadership theories have positive and negative impacts on the well-being of the employees.
Conflicts between individuals are inevitable. How they are handled in a professional environment, however, has a deep impact on the workforce. On average, twenty percent of managements time is spent managing conflict and that conflict at work had a substantial influence on individual, group, as well as organizational effectiveness. The well being of individuals and groups was also deeply impacted (de Dreu, Evers, Beersma, Kluwer, & Nauta, 2001). When conflict is unresolved, it escalates and can lead to aggression or violence in the workplace in extreme cases. In less extreme cases it leads to deep dissatisfaction and mistrust of leadership which has a corrosive and cancerous effect on the morale of employees. IN this respect, it is best to manage conflict at the first sign of it rather than later. The reasoning behind this is that when conflict is handled at the beginning it allows for more open communication as well as more ways of handling and resolving the conflict. It can also allow the individuals involved to resolve the conflict on their own and in their own way without it being escalated up the chain-of-command. Finally, it more cost effective as that conflict can take up valuable time for all parties when it is not managed up front (Enehaug, Helmersen, & Mamelund, 2016).
The Studies
When determining what leadership style to use, cultural difference, gender difference, physical location, and language all need to be taken into consideration. Analysis of various studies has shown that there are differences in how men, women, and minorities handle conflict. Western culture and other individualistic cultures handle conflict very differently than those that are more collective in nature. Collectivist natures tend to be more withdrawn and compromising while individualistic cultures are more likely to pursue the opposite (Christie, 2011). A framework created by Blake and Mouton viewed the different types of conflict. They developed a grid that compared conflict responses by taking note of the levels of cooperation and assertiveness. The concept was based on two behavioral dimensions, the concern a leader has for people and the concern a leader has for results. Based on the framework that Blake and Mouton developed, Kenneth Thomas and Ralph Kilmann created the Thomas-Kilmann Conflict Mode Instrument (TKI) which shows the inclination for individuals conflict response in one of five areas: competing, collaborating, compromising, avoiding, and accommodating. The TKI shows which style of conflict management an individual would be most likely to use. (Watson & Watson, 2015).
Autocratic
Roles
The autocratic style of management has been defined as someone who wants power with the capacity to socialize and uses rewards and punishment reluctantly. An authoritarian leader or executive will need and desire more power than one that uses a non-authoritarian style. The autocratic leader tends to be self-centered and makes decisions on their own with little to no input from others and they also tend to micro-manage their employees (Braun, Peus, Weisweiler, & Frey, 2013). In one study, over sixty-five percent of the managers that participated in a survey either never used or only used it sparingly as it is not viewed favorably in today’s workplace (Oshagbemi & Ocholi, 2006).
Impact on Organizations
The autocratic style of leadership has a negative impact on the organizations that it is used in (Jowah, 2015). When a leader is followed due to coercion it is not considered leadership but rather a dictatorship. It is generally viewed that if a leader has to resort to this type of leadership style, they have failed as a leader and have had no choice but to resort to this type of style. If an organization is older this style of leadership is more effective than in newer organizations (Oshagbemi & Ocholi, 2006). In terms of productivity; however, the autocratic style is the most efficient though employees don’t feel secure in their positions nor doing their jobs (Bhatti, Maitlo, Shaikh, Hashmi, & Shaikh, 2012). The threat of punishment due to mistakes is ever present in these companies and it is clear that the organization is only interested in the end goals. The opinion of the employee is not taken into account and therefor there is little sense of belonging for the employees. Therefor while productivity may increase there is often an undertone of rebellion that restricts productivity. There is a general hostile attitude as well as conflicts and limited communication. Similarly, employee turnover is high as well as low morale which ultimately leads to poor productivity.
Democratic
Roles
The democratic leadership style is viewed as a welcoming style that allows group decision making. Instructions are provided after a group comes together to be consulted. Democratic leadership emerges when, in an effort to not lose power, concessions with the followers are made (Jowah, 2015). Under this type of leadership style employees improve in not only their quality of work but also in employee moral (Puni & Bosco, 2016). Democratic leadership is also defined as participative as it shares knowledge between the employees which boosts innovation as well as the efficiency of the employees and organization as a whole. In this type of leadership, employees have a sense of buy-in as well as a greater sense of belonging (Puni & Bosco, 2016).
Impact on Organization
A democratic leadership style has perhaps the most positive impact on an organization’s effectiveness as well as job satisfaction (Bhatti et al, 2012). While the final decision is made by the leader because of the contribution of the other members of the organization job satisfaction is increased. Employees that are involved in the decisions
of the company grow in their people skills and feel more in control of their own destiny. They are motivated to work harder and that it is more than financial gain. While the growth in participation can take time to occur, the results of that participation are better for the organization. The democratic approach to leadership works best where team work is vital to the organization and the quality of work is more important than how fast the job gets done.
The democratic style of leadership is also beneficial in attracting quality workers. The overall financial benefits for the company are also important. There is no need for supervision and it also reduces conflict therefor there is not a need to spend time on discussing employee conflict (Saeed, Almas, Anis-ul-Haq, & Niazi, 2014). As employees are more involved in the making of decisions the employees have a positive effect on each other as well as the organization as a whole. In a study conducted by Somaye Gharbvand it was concluded that a democratic leadership style has an impact on employee job satisfaction as well as that there was a correlation between a democratic leadership style and employee job satisfaction (Gharibvand, 2012).
Laissez-Faire (Transactional)
Role
Laissez-Faire or transactional leadership is extremely hands-off (Derakhshandeh & Gholami, 2012). These types of leaders leave their employees to themselves and provide the maximum amount of freedom available to them. The employees have the ability to make their own decisions, create their own policies, and develop their own methods for how things are done. In a study by Khan, Aslam, & Riaz they describe laissez-faire leadership as a type of leadership where decisions are not made, actions of any kind are belated, and those in authority are unaware of what is occurring in their own organization (Khan, Aslam, & Riaz, 2012). Furthermore, Bhatti describes laissez-faire as a style that doesn’t interfere in any way, allowing total freedom with no way of attaining goals (Bhatti et al, 2012).
Impact on Organization
Domfeh, Obuobisa-Darko, & Asare state that a laissez-faire, or transactional, leader has the ability to increase the performance of the employees only when there are rewards and punishments that are given out fairly (2016). Likewise, the employee performances must be measured in a quantitative way. The increased performance however is only effective in the short-term and is contingent on the reward (Gregersen et al, 2014). In a survey it was shown that only eight out of ten respondents agreed that laissez-faire leadership causes effort on the part of the employee while only two believed that laissez-faire leadership creates effort a majority of the time (Obiwuru, Okwu, Akpa, & Nwankwere, 2012). In that same survey it was shows that a majority of the respondants agreed that the style only sometimes promoted productivity and the minority believed that the style enhances productivity on rare occasions. Through these findings it is concluded that this style of leadership rarely promotes effort or productivity.
Transformational
Roles
Transformational leaders are leaders that raise the consciousness of those they lead. The consciousness of the value and importance of outcomes as well as how to achieve them become something at the forefront of thought for those in the organization (Obiwuru et al , 2012). Transformation leaders focus first and foremost on the needs of the employees and the future (Saeed et al, 2014). Transformation style has been touted as a style that will raise the conciousness of employees while encouraging employees to achieve more than what had been planned by leadership (Ahmad et al, 2014). This leads to transforming the employees values, goals, as well as emotions associated with the goals for the organization (Braun et al, 2013).
Impact on Organization
A transformational leadership style has been consistently linked to higher levels of effort, performance, and job satisfaction (Saeed et al, 2014). Viewed as an effective and facilitative leadership style it is related to positive employee satisfaction as well as a higher motivatin and performance in an organization. Employees that follow this type of leadership have been shown to be more innovative and look for ways to manage conflict in a positive and healthy manner while also seeing opportunities to take risks rather than stick with the status quo. This style of leadership can have the greatest effect on job satisfaction (Ahmad et al, 2014).
Braun et al (2013) show in their study that transformational leadership has greater outcomes when it comes to performance as well as aiding employees in identifying with their organizational values, mission and vision statements. By identifying with these areas, employees become more effective and create a more positive work environment. It can be seen then that transformational leaders create and motivates its followers to perform at a higher rate than any other leadership style.
Conclusion
Conflict in the work place is something that will occur. It is how it is handled that makes the difference. Organizations have the ability to minimize the effect of negative situations. Through the assessment of conflict and the amount of conflict that happen an organization can determine the type of process needed for conflict management. Research suggests that some types of conflict management are more effective than others. In all of these types both situation and dispositional factors play a role in their selection and use. From the review of literature it is clear that some styles are of greater benefit and more effective than others to the organization and employees as well. Scripture reminds us that our leaders are allowed in their position by God and thus submission to authority is godly (Romans 13:1). Scripture also reminds us to pray for those in leadership, so they can be good and godly leaders, doing what is right in all ways (1 Timothy 2:1-2). By understanding the various types of leadership styles and how they affect those in the organization as well as the organization over all is vital to the success of everyone involved.
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