Developing Effective Leadership Style for Business Productivity

The article emphasizes the importance of adopting suitable leadership styles depending on the situation to achieve desired results and outcomes. It highlights that various authors define democratic leadership style as effective due to its ability to boost morale, motivation, and team work among employees. Additionally, managers are adapting their approach to meet the needs and wants of the situation. The article concludes that there is no one-size-fits-all leadership style, but rather a need for situational leadership to achieve desired outcomes.

Organisational Effectiveness on Leadership style

Table of Contents
Introduction................................................................................................................................................3
Background of the study........................................................................................................................3
Research Questions...............................................................................................................................3
Literature Review.......................................................................................................................................3
Leadership style and Performance........................................................................................................3
Organisational effectiveness..................................................................................................................5
Conclusion.................................................................................................................................................6

Topic: “Organizational Effectiveness on Leadership style”
INTRODUCTION
Background of the study
Leadership is very important in the company as it provide guidance to employee which further
assists in enhancing the effectiveness of the organization. In the present study, researcher focuses on
evaluating the impact of different leadership style on the effectiveness of the organization. However,
nowadays leaders face various challenges of recruiting and holding the competent employees in the
organisation (Haines, 2005). But it is important for the leaders to possess the ability to inspire, motivate
and develop commitment within the employee regarding common goal of the firm. The main purpose
of researcher conducting the literature review on the selected topic is to evaluate and analyse the views
and thoughts of different authors on the significance of use of appropriate leadership style by the
managers to enhance organisational effectiveness (Manning, 2003). In context to personal
understanding, researcher signifies that to improve the overall effectiveness or productivity of business
enterprise it is essential to undertake suitable and reliable leadership style.
Research Questions
Research questions are important for the study because they determine different areas in which
research will be carried out. Along with this, it helps the researcher to attain the overall aim by
addressing related aspects of selected topic. Following are the questions of present study:
 What are the different types of leadership styles used by managers to attain organisational
growth and sustainability?
 How leadership styles assist in improving productivity of the business?
 What is the significance of appropriate leadership style for organisational effectiveness?
LITERATURE REVIEW
Leadership style and Performance
According to Adair, (2011) leadership refers to the ability of an individual to influence a group
towards achievement of gaols. In the study of Ehrich, and English, (2012), leadership has been
identified as the significant subject in the field of organisational performance. However, according to
the author, the ability of the management of organisations to execute collaborated efforts depends upon
the leadership capabilities (Ehrich and English, 2012). Analoui, Doloriert, Sambrook (2013) explained
in their study that, excellent leader not only motivate or encourage colleagues or subordinates to
enhance the efficiency but also focuses on meeting their needs and wants in the process of achieving
organisational effectiveness. Bertocci, (2009) defined leadership as the individual behaviour that guides

group or a team to achieve desired common target. Thus, managers in different organisations use varied
types of leadership style to inspire and enhance potential of employees regarding growth and
development (Bertocci, 2009). According to the Dugan, (2011), there are several reasons that clearly
defines that there is correlation between leadership style and organisational performance. First reason is
that, current intensive and dynamic markets features innovation based competition, price/performance
rivalry, decreasing returns, and destruction of existing competencies. In this context article of Ehrich
and English (2012) states that, effective leadership approaches can assist in improving the performance
when organisations faces these new challenges.
According to the study of Hay and Hodgkinson, (2006) there are several leadership styles that
are used by the managers to motivate and encourage performance of employees so that overall
effectiveness of the firm can be improved. Further, author states that leadership styles not only have
significant effects on small businesses but it also affects the world's largest corporations (Hay and
Hodgkinson, 2006). Different types of leadership styles are autocratic, democratic, delegative and
transactional etc.
As per the view of Bouton (2007), autocratic leadership style clearly defines the division
between leaders and workers. However, an autocratic leader takes decision with little or no
involvement from employees. These types of leaders are supremely confident and comfortable about
the judgement or task they are carrying out. In context to business effectiveness, autocratic leadership
styles display less creativity than the other contemporary style. The main purpose of a leader is to get
connected with the employees and motivate them or encourage to carry out the work in the best
possible manner so that overall productivity can be enhanced (Bouton, 2007). This leadership style
does not focus on involving employees in decision making process which at times can create negative
perception in the mind of individual. Contradicting to this Reigeluth (2013) states that, autocratic
leadership style is effective at the time when company require quick decisions to overcome obstacles
and issues. Similar to this, in the situation of constant change autocratic leader is able to respond to the
situation quickly and prevents the business from falling behind (Reigeluth, 2013). Supporting to this
study of Heckhausen, and Heckhausen, (2008) revealed that, manager using such leadership style
always have close oversight on the activities of workers which assist in eliminating the waste and
further enhance the efficiency in achieving desired results and outcomes.
Other than this, according to Adair, (2011) researcher evaluated that democratic leadership style
is considered as the most effective approach of leading the team in a company. However, it is opposite
of the autocratic leadership style as it emphasizes on involving employees from each level to provide
their views and thoughts about the current position of business so that potential improvement can be

implemented with the mutual concern of all the people. Ehrich and English, (2012) states that, leaders
possessing such leadership style have the right to make decisions but before making any judgement,
they always encourage the feedbacks, ideas, and suggestions from the employees so that best possible
can be made for the company. In the book of Bertocci (2009) investigator evaluates that, democratic
leadership style encourages better contribution from group members which helps in increasing the
group moral. Through the help of this leadership approach, manager can become creative and can make
effective solution to the problems of business enterprise because group members are encouraged to
share their views and ideas. Contradicting to this Timothy and et. al, (2011) illustrates that, in the
situations where roles are unclear and limited time is available to carry out the work, democratic leader
can lead to communication failures and even uncompleted projects. Thus, it is important for the
managers of the companies to change their leadership approach as per the situation so that they can
easily deal with the conditions and enhance the organisational effectiveness.
In context to corporate environment, Mendez and et. al, (2013) defines laissez faire leadership
style as the least effective option. In this leadership style, manager gives all the powers and authority of
making decisions to workers or team members. Furthermore, using this approach manager does not
provide any kind of direction to the team or group (Mendez, and et. al, 2013). In this context study of
Bouton (2007), assist in evaluating that, if a leader withdraws too much from their followers it can
sometimes result in a lack of productivity, cohesiveness and satisfaction. However, this type of
leadership style is only promoted in sectors like construction, education etc. it is because; team
members or workers in these sectors are highly skilful, experienced and educated. Along with this,
author highlighted that, employees have pride in their work and that drives them to successfully carry
out their task which helps them to personally as well as professionally achieve their objectives. .
Lastly, Analoui, Doloriert, Sambrook, (2013) defines transactional leadership style as the
approach through the help of which leader motivates employees or subordinates by giving rewards and
punishments. However, this system is based on two factors such as contingent reward and management
by exception (Analoui, Doloriert, Sambrook, 2013). Supporting to this Heckhausen and Heckhausen
(2008) states that, contingent reward assists the managers to motivate employees in terms of enhancing
their skills and abilities so that they can achieve set benchmark and generate desired results for the
firm.
Organisational effectiveness
Looking at the present competitive market it is important for the companies to enhance their
business operations at each level so that they can maintain the position in existing market and achieve
future sustainability. According to Ehrich and English (2012) defines the effectiveness of an

organisation as the ability to exploit the environment to acquire wide range of resources to carry out
business operations effective and efficiently. In simple words, Bouton (2007) illustrate that,
organisational effectiveness is the concept of how effective company is in achieving the organisation
intended goals and objectives. In this, leadership plays a crucial role as managers are the one who are
responsible for carrying out the operations through the help of employees (Bouton, 2007). In this
context, Timothy and et. al, (2011) states that, in order to generate desired and intended outcomes it is
important for the managers to make use of effective leadership approach that suits the situation and
positively commence the entire functioning of the business enterprise. In the present market, companies
operating in distinctive sectors are facing high level of competition. Thus, leadership is the major tool
and technique with the help of which managerial level people can develop strong base for the company
and even assist in achieving competitive edge within the market (Timothy and et. al, 2011).
Through the study of Mendez and et. al, (2013) researcher identifies that, leadership style can
affect the communication and productivity of business. However, a bureaucratic leader always tends to
slow up the communication in order to check every part of the functioning. This may lead to decrease
in efficiency of business enterprise (Mendez and et. al, 2013). Contradicting to this Haines (2005)
defines that, managers has the responsibility to carry out the functioning appropriately. Thus, it is
important to undertake suitable leadership style according to the situation so that best possible results
and outcomes can be generated.
CONCLUSION
In conclusion to the above literature review it has been observed that there are different
leadership style that makes varied impacts on the productivity and effectiveness of the business.
Various authors defines that, democratic leadership style is suitable because it helps in carrying out the
functioning of business through the means of team work which directly and indirectly increase the
moral and motivational level of the employees. It also assists in increasing the morale and motivation
of employees. Nowadays, managers are changing their approach as per the needs and wants of the
situation so that desired results and outcomes can be achieved.

REFERENCES
Journals and Books
Adair, J., 2011. Effective Strategic Leadership. Pan Macmillan.
Analoui, B. D., Doloriert, C. H., Sambrook, S., 2013. Leadership and knowledge management in UK
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Bertocci, I. D., 2009. Leadership in Organizations: There is a Difference Between Leaders and
Managers. University Press of America.
Bouton, M. E., 2007. Learning and behavior: A contemporary synthesis. Sinauer Associates.
Dugan, P. J., 2011. Pervasive myths in leadership development: unpacking constraints on leadership
learning. Journal of leadership studies. 5(2).
Ehrich, C. L. and English, W. F., 2012. What can Grassroots Leadership Teach us about School
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Haines, 2005. Strategic Thinking for Leaders: The Systems Thinking Approach. Systems Thinking
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Hay, A. and Hodgkinson, M., 2006. Rethinking leadership: a way forward for teaching leadership?.
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Heckhausen, J. E., and Heckhausen, H. E., 2008. Motivation and action. Cambridge University Press.
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