Analysis of Leadership Styles and Their Impact on Performance

This report examines the impact of various leadership styles on organizational performance, focusing on transformational and democratic leadership. It begins by introducing the concept of leadership styles and their significance in shaping organizational outcomes. The report then delves into transformational leadership, highlighting its ability to inspire employees, foster innovation, and adapt to dynamic business environments. It also explores democratic or participative leadership, emphasizing its emphasis on employee involvement in decision-making and its contribution to employee motivation and strategic thinking. The report references the work of Atmojo (2015) and other researchers, providing a comprehensive overview of the benefits of each leadership style. In conclusion, the report underscores the importance of selecting the right leadership style to enhance organizational performance in today's competitive business environment. This analysis is designed to provide students with a clear understanding of effective leadership strategies.

Running Head: Impact of Several Leadership Styles on Organizational Performance
Impact of Several Leadership Styles on Organizational Performance
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1Impact of Several Leadership Styles on Organizational Performance
Introduction:
The purpose of this study is to look at the leadership styles that assist in the betterment of
the e=organizational performance of the employees. In this context, this study throws lights on
two most effective leadership styles- transformative leadership, democratic leadership or
participative leadership. Further this study shows how transformative leadership inspires the
employees to welcome changes in the business framework and motivate them to foster
innovation so that organizational performance can be improved. The next section of this study
focuses on the attributes of democratic leadership and their contribution to the enhancement of
the organizational performance of employees.
Discussion:
According to the arguments of Atmojo (2015), leadership styles represents a vivid idea of
the impact it can cast upon to shape and direct organizational performance. Atmojo, (2015),
elaborates that leadership procedures that boost interpersonal relationships, effective business
communication, collaboration as well as engagement among employees or the members of a
team, are able to drive organizational performance towards perfection. Further, the author throws
lights on several leadership styles that boost the organizational performance towards excellence.
Firstly, he talks about transformative leadership. Transformational leadership can be
considered as one of the most effective leadership style, in which leaders plays a dynamic role to
foster necessary changes in the business framework, in order to foster improvement in the
business. Again, transformational leaders inspire and boost employees to walk on the path of

2Impact of Several Leadership Styles on Organizational Performance
innovation so that essential transformations can be created in the production process and success
of an organization can be ensured (Atmojo, 2015).
The effectiveness of transformational leadership to enhance organization performance
can be attributed to its compatibility with the dynamic environment of world business. Due to the
existence of a high level of competition in the global business environment a company needs to
renovate its strategies to manage the business activities and the teams serving the company as
well. Transformational leadership helps in renovating the strategies to conduct a business, fosters
necessary changes in the business framework. A transformational leader has the ability to
communicate the employees the reasons why changes are essential in the business framework.
Again, a transformational leader can easily convince the employees to welcome necessary
changes. A transformational leader provides constant motivation to the team serving the
company to adopt innovative approach to their work. Thus, transformational leadership enhances
organizational performance (Atmojo, 2015).
Secondly, he talks about democratic leadership. According to Atmojo, (2015), democratic
leadership can also be termed as participative leadership. Democratic leadership consider every
individual significant as well as unequal as per the hierarchal standards of an organization
(Atmojo, 2015).
There are several factors indicate to the appropriateness of democratic leadership to
enhance organizational performance. Firstly, democratic leaders believe in the shared power in
the process of decision making. Hence, at the time of making decisions democratic leader
emphasizes on the views of every individual. This is indicative of the fact that democratic leaders
value the opinions of every individual employees. Democratic leaders also encourage each and

3Impact of Several Leadership Styles on Organizational Performance
every employee to think logically as well as strategically. Thus, democratic leader helps the
employees to inculcate logical as well a strategical thinking. This contributes to the enhancement
of the organizational performance of every employee. Again, democratic leaders believe in the
free-flow of innovative ideas and values the opinions provided by each employee. This way
every employee feels valued. They are also motivated enough, so that they can come up with
innovative ideas. All these boost the organizational performance of the employees. democratic
leadership can also be termed as participative leadership as democratic leadership encourages
active participation of each individual employee in the business activities conducted by an
organization. This is another factor which makes the employees more active and help them to
upgrade organizational performance (Atmojo, 2015).
Conclusion:
In the conclusion it can be said that, there are several leadership styles. Not all
leadership styles are effective to enhance organizational performance of the employees.
Transformational leadership is one of the leadership styles that assist the follower to improve
their organizational performance, even in this dynamic business environment. Transformational
leaders play a dynamic role to foster necessary changes in the business framework, in order to
foster improvement in the business. Again, transformational leaders inspire and boost employees
to walk on the path of innovation so that essential transformations can be created in the
production process and success of an organization can be ensured. Another leadership approach
that is considered effective to boost organizational performance towards perfection is democratic
leadership. Democratic leadership consider every individual significant as well as unequal and
boost every employee to think logically and participate actively so that organizational
performance can be that improved.

4Impact of Several Leadership Styles on Organizational Performance
References:
Atmojo, M. (2015). The influence of transformational leadership on job satisfaction,
organizational commitment, and employee performance. International research journal of
business studies, 5(2).

5Impact of Several Leadership Styles on Organizational Performance
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