Leadership is so much crucial for the performance of a firm and leadership styles decide the internal environment culture and structure and procedures and guidelines for the firm’s way forward.
Leadership
is a matter of both motives and perceptions, and it does not always match.
Employee-aware leadership expects a stronger correlation with organizational
performance than the leader expects because employee motivation and commitment
only affect leadership if they see it. (Arnold & Connelly, 2015)
Throughout
literature and in the practical world we can observe certain types of
leadership. Mainly in literature, we find autocratic, democratic, charismatic,
spiritual, transformational and transactional.
Autocratic leadership
Autocratic
leaders are classic “do as I say” types. Usually, these leaders are
inexperienced with leadership thrust upon them in building a new position or
assignment that involves people management. Autocratic leaders retain for
themselves the decision-making rights and maintain centred power. They can
damage an organization irreparably as they force their ‘followers’ to execute
strategies and services in a very narrow-based upon a subjective idea of what
success looks like. There is no shared vision and little motivation beyond
coercion. Commitment, creativity and innovation are typically eliminated or
reduced by autocratic leadership. Most followers of autocratic leaders can be
described as biding their time waiting for the inevitable failure this
leadership produces and the removal of the leader that follows.
Democratic leadership
A democratic
leadership style has emerged with notions of an empowered workforce. But how do
you get the best out of such an approach? It has a lot to praise as a style of
leadership, but it does not require an easy approach to do well. A democratic
leadership style is an open approach to leadership where decisions are shared
and the vision, goals and decisions that contribute to the appreciation of the
ideas of a group or group. Greek history describes the term Democratic as being
used to describe power or control. Another way to describe this style of
leadership is to call it participatory leadership, embracing ideas about
participation and engagement.
Charismatic leadership
Defines the
most successful trait driven leadership style as charismatic. Charismatic
leaders have a vision, and he or she also has a personality that motivates
followers to make the vision work. Therefore, this type of leadership has
traditionally been one of the most valuable. Valuable charismatic leadership
provides a fertile ground for creativity and innovation, often with high
motivation. When popular leaders are at the forefront, members of the
organization want to follow suit. It seems like the best opportunity. However,
there is one important problem that can undermine the value of charismatic
leaders: they can be abandoned. Once gone, an organization can appear without a
steering wheel and direction.
Spiritual leadership
Spiritual leadership is a causal theory that drives toward organizational transformation designed to create an intrinsically motivated, learning organization. The purpose of spiritual leadership is to create a consensus of vision and value across strategic, empowered teams and individual levels, and ultimately to promote higher-level organizational commitment and productivity. (Fry, 2005) Simply it is leading an organization by giving meaning to the work-life of keeping their mind stress free to achieve the whole organization’s goals.
Transformational leadership
The
transformational leadership style focuses on the development of followers as
well as their needs. Managers with a transformative leadership style focus on
the growth and development of the employee value system, their level of
inspiration and ethics as a prelude to their potential. According to Bass
(2006), transformational leadership aims to translate people and organizations
literally - transforming them in mind and heart so that behavioral values
coincide and make a difference for reasons that explain vision, insight and
understanding. Build permanent, self-sustaining momentum.
Transactional leadership
Described this
as leadership relies more upon "trades" between the leader and
follower by which followers are rewarded for achieving specific goals or
performance targets. The transactional leader will first accept the
relationship between performance and reward and then exchange it for an
appropriate response that encourages subordinates to improve performance. Transactional
leadership in organizations plays an exchange role between managers and subordinates
or followers. The transactional leadership style is understood to be the
exchange of rewards and targets between employees and management. Bass and Avoid
also explained that Transactional leaders motivate subordinates through the use
of contingent rewards, corrective actions and rule enforcement. So after
understanding those different styles it is safe to state that different styles
affect the performance of the organization in unique ways. This also will be the
same to supply chain performance. Transactional leadership is a style of
leadership in which leaders promote compliance by followers through both
rewards and punishments.