An Analysis of Leadership Styles on Economic Development

This report examines the critical role of leadership in regional economic growth and development, considering various influencing factors such as history, culture, demographics, and technology. It contrasts shared leadership, characterized by a dynamic and bilateral influence process, with transformational leadership, which focuses on guiding change through inspiration. The report analyzes the effectiveness of these leadership styles in the context of Asian economic development, considering the current global scenario. It assesses how transformational and shared leadership approaches contribute to economic growth, team output, and organizational strategies. The research evaluates data related to these leadership styles, considering demographics, psychology, economic factors, and the overall economic scenario to determine which style is more effective and efficient. The report references studies on leadership, team effectiveness, and organizational culture to support its findings. The provided solution on Desklib offers valuable insights for students studying leadership and its impact on economic development, providing a comprehensive overview of leadership theories and their practical applications.

Running head: LEADERSHIP AND ITS EFFECT
LEADERSHIP AND ITS EFFECT
Name of the Student
Name of the University
Author note

1LEADERSHIP AND ITS EFFECT
Leadership and Regional Economic Development & Growth
Leadership plays and important role in the regional economic growth and
development. Leadership being a key factor, for a region’s economic growth and
development, it is influenced by various contemporary factors including history and culture,
demographics, staff characteristics, resources, economic and political factors, technological
environment and many other such factors (Choi, Kim and Kang 2017).
Leadership styles across the globe has changed in the times today in accordance with
the dynamicity of work and culture. Hence, the leaders today have to take into account all the
various segments of people in the country and bring them together for the economic
development and growth.
Shared Leadership and Transformational Leadership
Shared Leadership
A dynamic and bilateral influence process among different levels of people for which
the objective is to lead everyone in the group to the achievement of the group or regional
growth or both (Galli 2019). This influence process often involves associate or lateral
influence, and on the other hand, it involves at times an upward or downward hierarchical
influence.
Transformational Leadership
An approach where leader works with teams to find the areas where change is needed
and hence create a series of action to guide the change through inspiration and then executing
the vision put forth in a synchronisation among the members of the group (Stough 2019).

2LEADERSHIP AND ITS EFFECT
Leadership Types and Economic Development in Asia
In the current global scenario, pertaining specifically to the Asian region, the
population is experiencing both the types of leaderships in different parts and trying to cross
the hurdle for a raised level of economic structure in the economy and higher standards of
living (Nasution 2016). The shared leadership approach has been experienced in various parts
of the continent yet today specifically in the South East Asian region the transformational
style of leadership has taken over.
Transformational leadership style is a vertical leadership style which is emanated
from the main leader, whereas shared leadership style is a distributed leadership style the
emanates from the leaders of the team.
Effectiveness of Shared and Transformational Style of
Leaderships and its Impact on the Economy
Economic growth and development is the prime agenda of all the world leaders and
are on the table with no major change in the bars of economic development and growth.
Transformational leadership style is a vertical leadership style which is arises from the
formal leader, whereas shared leadership style is a distributed leadership style the emerges
from team leaders
Characteristics of both the leadership styles can be critically examined to conclude
that the transformational leadership approach contributes more to the team’s output potency;
on the other hand, shared leadership approach helps in improving the teams’ organizing and
planning strategies (Galli 2019).
This research shall examine the set of data available in accordance to the
characteristics of the two leadership approaches to conclude which style of leadership is more

3LEADERSHIP AND ITS EFFECT
effective and efficient in the current time on the basis of demographics, psychology of the
population, current economic scenario, and various other economic factors.

4LEADERSHIP AND ITS EFFECT
References
Choi, S.B., Kim, K. and Kang, S.W., 2017. Effects of transformational and shared leadership
styles on employees' perception of team effectiveness. Social Behavior and Personality: an
international journal, 45(3), pp.377-386.
Galli, B.J., 2019. A shared leadership approach to transformational leadership theory:
Analysis of research methods and philosophies. In Scholarly Ethics and Publishing:
Breakthroughs in Research and Practice (pp. 751-790). IGI Global.
Nasution, M.K., 2016. Social network mining (SNM): A definition of relation between the
resources and SNA. International Journal on Advanced Science, Engineering and
Information Technology, 6(6), pp.975-981.
Stough, R.R., 2019. Leadership, institutions and regional economic development and growth.
In Handbook of Regional Growth and Development Theories. Edward Elgar Publishing.