Importance of Leadership Style in Business Success

Running head: COMMUNITY MANAGEMENT AND ORGANIZATION
Community Management and Organization
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Name of the University
Author’s Note

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COMMUNITY MANAGEMENT AND ORGANIZATION
Introduction
The present study gives an overview on the importance of leadership style in leading
towards success in business. The leaders adopting leadership style influences the employee’s
behavior in working towards business goal. Leaders have the ability to maintain interpersonal
relations with their subordinates and motivate them to attain objectives of the enterprise.
Leadership style is the way by which leaders adopt their functions and the way they behave
towards their group members (Iqbal, Anwar and Haider 2015). It can be participative or
collaborative and directive or commanding leadership style. There are different types of
leadership styles such as- transformational, transactional, charismatic, democratic, autocratic,
servant and bureaucratic. This study focuses on two case studies that reflect on two different
leadership styles integrated by two leaders working in different organizations.
Question1:
a) The leadership style adopted by Richard Branson is transformational leadership style.
Transformational leadership style is the leadership style where the leaders mainly works with the
teams for identifying change and creating vision to guide change through inspiration and
executing change with the group members (Mesu, Sanders and Riemsdijk 2015). The
characteristics of transformational leadership style includes-
i). Idealized influence- It determines the ability to build confidence within the leaders that forms
the basis to make change within the enterprise. Leaders having these features are honored,
trusted and appreciated by the followers.
ii). Intellectual simulation-It refers to the ability of a transformational leader to transform the
organizational process. These leaders enhance efforts of followers in regard to innovativeness,

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COMMUNITY MANAGEMENT AND ORGANIZATION
creativity and stimulate change in the way of thinking relating to business problems (Choudhary,
Akhtar and Zaheer 2013).
iii). Inspirational motivation-This relates to the transformational leaders ability to inspire as
well as motivate followers to make good behavior. These leaders also motivate others to follow
new idea.
iv) Individual consideration-This feature of transformational leader reduces ability of the
individual analysis of subordinates.
One such examples of Branson adopting transformational leadership style is that he puts
their employees interest first. This is because Branson believes that this inspires as well as
encourages them to work harder towards enterprise goals.
b) Terry Gou adopts autocratic leadership style as he does not permit their workers to work
independently (Rast III, Hogg and Giessner 2013). The leaders adopting this leadership style
includes application of punishment and task- oriented approach. The theory of path- goal
leadership style defines these leaders as directive leaders. With leadership style, the employees
becomes constantly in pressure to work harder for enhancing efficiency as well as productivity.
One of the examples of this leadership style is seen from the case study that there have
been near around 11 suicides and suicide threats being done owing to bad working conditions as
well as employees treatment. Terry Gou did not consult with his employees and even attempted
to make a sign in absolving his enterprise of any kind of responsibility if they wishes to commit
suicide.
Question 2