Leadership Styles (AQA AS Business): Revision Note

Introduction to leadership styles

• Leadership styles are different approaches to leading and managing a team or business

• They reflect the behaviours and attitudes of a leader towards their team members and influence the organisational culture, productivity and performance

• A successful leader will be able to use a variety of leadership styles depending on the situation to achieve the best results for their business

Common leadership styles

• The choice of leadership style is influenced by the business circumstances as well as the nature and size of the business

Autocratic leadership

• An autocratic leader is a type of leader who holds absolute power and authority over a business

  • The leader makes decisions without seeking input or agreement from others

  • They typically expect strict obedience and compliance from their subordinates

• Autocratic leaders often have complete control over the decision-making process

  • They set the direction and goals of the business

  • They do not usually consider the opinions, ideas or expertise of their team members

  • Their decisions are generally not open to discussion or debate

Situations where autocratic leadership is beneficial

Disadvantages of autocratic leadership

• While autocratic leadership may be suitable in certain situations, it can also have drawbacks, including:

  • reduced employee morale, as workers have no input into decision-making

  • limited creativity, as employees are required to follow strict instructions and are closely monitored

  • the lack of input from team members restricting an important source of problem-solving ideas and innovation

Paternalistic leadership

• Paternalistic leadership is where a leader assumes a "fatherly" role towards their subordinates, acting in a protective and authoritarian manner

Advantages of paternalistic leadership

• The leader makes decisions for employees while also showing concern for the well-being and development of subordinates, even if it means limiting employees' autonomy and freedom of choice

• The leader takes on responsibility for the welfare of their employees

  • They may provide guidance, support and resources to ensure the success of their employees

  • Huawei’s Ren Zhengfei is viewed as a paternalistic leader who has shaped the business's culture with well-defined goals, employee devotion and absolute obedience in return for highly competitive pay and opportunities for staff to buy shares in the company

• Paternalistic leadership can create a sense of security and support among employees, increasing their loyalty and reducing staff turnover

Disadvantages of paternalistic leadership

• It can also be perceived as controlling and limits creativity and innovation within a business

• It may create a dependency on the leader, which restricts personal growth and professional development among employees

Democratic leadership

• Democratic leaders actively involve employees in the decision-making process and encourage discussion, though they have the final say

  • Consultation, collaboration, delegation and teamwork are common features of democratic leadership

• This leadership style is most effective in organisations with skilled, experienced and creative employees

Evaluation of democratic leadership

Laissez-faire leadership

• Laissez-faire leaders play a minimal role in managing their business team

• Leaders provide little guidance, direction or supervision to employees, allowing them significant autonomy and freedom in making decisions and completing tasks

• Laissez-faire leadership is most appropriate where leaders are working with a highly skilled and self-motivated team that requires minimal supervision

Evaluation of laissez-faire leadership

Trait theory of leadership

• Trait theory suggests that great leaders are born, not made

  • Studies of great historical leaders investigated both their personality and physical traits

    • Certain traits were observed in leaders across time, in different cultures and locations

• The studies found that some people are simply born with the personality traits and physical attributes that set them apart from others and give them the potential to demonstrate great leadership skills

  • Political leaders including former US president John F Kennedy, Britain's Margaret Thatcher and France's Emmanuel Macron are said to possess these skills and characteristics

  • In business, leaders including Microsoft's Bill Gates, Sony's Akio Morita and Italy's Enzo Ferrari possess these traits

  • Despite being present at birth, these natural talents must be developed and the individual must learn to apply leadership techniques to be successful

• Some of the natural qualities of a successful leader identified include:

  • Charisma

  • A drive to achieve

  • The desire to lead

  • Integrity

  • Confidence

  • Intellect

  • Effective political skills

  • Business knowledge 

  • Emotional maturity

• Trait theory also emphasises typically masculine characteristics, such as height and appearance, and, as a result, is now seen as dated

Behavioural theory of leadership

• Behavioural theory suggests that individuals can learn behaviours that make them effective leaders

  • A research focused on how CEOs, project managers and other leaders across diverse industries responded to situations

    • It found that successful leaders pursued actions in a consistent way and had developed behaviours that were key to business success

  • These behaviours do not come naturally to everyone but can be learned and strengthened with effort, observation and experience

• Effective leadership requires three important types of skills, all of which can be developed over time

  • Human skills such as communication and empathy

  • Conceptual skills such as problem-solving or spotting opportunities

  • Technical skills such as budgeting or people management

• The best leaders use these skills and adapt their behaviour according to the context in which they find themselves