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Different types of business leadership

Updated on May 23, 2014

Types of business leadership styles

There are different types of business leadership implemented in the work place. Understanding the type of business leadership that is employed in your office is important so that you will know how to acclimatize, carry out your tasks and interact with your co-workers and bosses. The type of leadership implemented is also crucial in determining the efficiency of the daily operations of the business.

To give you a better idea about this, here are some of the popular business leadership styles commonly implemented in businesses—whether they are a small business, medium-scale enterprise or large corporation.

Autocratic leadership style

One of the common items in the different types of business leadership is autocratic. Here, there is a head leader who does all the executive decisions. On the other hand, the subordinates cannot and shall not question or give a feedback to the decisions made by the head leader. So in essence, this type of business leadership is like a dictatorship in terms of politics. There is no consultation with the subordinates and team members who are under the power of the head leader. More so, there is no need for approval from other employees.

The fact is, this situation is not really effective when it comes to businesses which are into retail tourism, or any industry that is people-based. It is no wonder then that this is rarely implemented.

Participative leadership style

Another type of business leadership is participative leadership. This is the opposite of the autocratic type of leadership. In this system, the followers or subordinates have a voice in the making and implementation of the decisions of the company. The leader of the team takes into consideration the views and opinions of his or her co-workers.

In this regard, the workers and subordinates have the freedom to participate in the discussion of major and even minor steps that the company will take. They are also free to express their ideas and feedback for the development of the company and the achievement of the company goals. However, the final say in the decisions of the company still goes to the leader.

This is the type of leadership which is commonly used in people-based industries like retail.

Delegative leadership style

And finally, there is the delegative type of business leadership. This is one of the common types used among the different types of business leadership. Here, the tasks in the company are delegated to different teams; hence, the name of this system of leadership.

The goal here is to divide the tasks for a smoother and more efficient day to day operation of the business. The workers are allowed to do their tasks on their own. The company and executives place their trust on the individual capacity of the team members.

However, the leader is still the point person who is responsible for his or her team. Therefore, he or she must make sure that the goals are achieved and the tasks are done efficiently and according to the plan of the team and company.

Leadership Styles that don't Work & Leadership Styles That works


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