Impact of Leadership Style on Business: A Literature Review

LITERATURE REVIEW

Contents
INTRODUCTION...........................................................................................................................3
MAIN ISSUES................................................................................................................................3
MAIN BODY...................................................................................................................................3
Theme 1: How businesses use leadership style......................................................................3
Theme 2: Impact of different leadership styles on productivity and morale of employees...4
Theme 3: How choosing inappropriate leadership style impacts decision-making of the
business...................................................................................................................................5
Theme 4: Roles performed by a leader for the success of an organisation............................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
With the motive of building a new business, it is quite important to identify, choose and
maintain appropriate leadership. There are different kinds of leadership styles which include
coaching leadership, affiliative leadership, laissez-faire, autocratic, democratic etc. But generally
the challenge faced by an organisation is finding appropriate leadership style (Kazim, 2019). The
different styles of leadership styles play important role in the success of a business and in some
cases it becomes the reason of low employee motivation, inappropriate decision-making, high-
employee turnover and lower productivity. It is stated that organisations are needed to select the
appropriate leadership style for avoiding any negative effects. The existing literature review
focuses on carrying out in-depth information about the conceptual framework of leadership and
different leadership styles in an organisation (Bednářová, Hiršová and Komárková, 2019). This
section also includes gap in the literature based upon theme so that proper findings could be
carried out. The sources used for gathering relevant information are: books, articles, journals,
newspapers, publications etc.
MAIN ISSUES
Some of the themes that best describe the selected topic are:
 How businesses use leadership style
 Impact of different leadership styles on productivity and morale of employees
 How choosing inappropriate leadership style impacts decision-making of the business
 Roles performed by a leader for the success of an organisation
MAIN BODY
Theme 1: How businesses use leadership style
According to Idiegbeyan-Ose (2018), leadership style refers to the characteristics or
behaviour of a leader. The behaviour of a leader revolves around the procedure of direction,
guidance, management and motivation of employees. In the procedure of developing an
organisation, it is quite significant to choose apt leadership style so that pre-defined objectives of
a business could be attained.
According to Rao and Zaidi (2020), the main leadership styles include democratic,
laissez-faire and autocratic. On the other hand, as per the view of the most common kinds of
leadership styles are affiliative, authoritative and coaching. Though, the most important area of