When it comes to choosing a leadership style for your team, it’s important to take into account how it will impact employees. By understanding the five types of leadership styles and the different ways they can affect a team, you can make a more informed decision.  This is why leaders must monitor the effects of a leadership style on their employees and use that to adjust either by team or individual employee.

Autocratic

Autocratic leadership style effects on employees are a subject of debate. While it can be beneficial in certain situations, it can be detrimental in others. For instance, it can create a stifling atmosphere, a lack of trust in subordinates, and a lower morale.

Some benefits of autocratic leadership are that it is quicker to establish a work environment, allows a team to complete tasks faster, and reduces employee stress. However, it is also more likely to lead to negative reactions and employee turnover. Fortunately, there are ways to mitigate the negative impact of this style.

First, listen to your team. By giving them a clear and straightforward set of rules and processes, they will feel more empowered. Second, a leader should give them an opportunity to voice their concerns. Listening to these concerns can help mitigate full-blown dissent. Finally, recognize them for their efforts. If they aren’t recognized often enough, they may begin to question the value of the company and quit.

Third, the quality of social exchange is likely to be poor. Rather than providing feedback and suggestions, an autocratic leader will tend to focus on controlling information and maintaining the hierarchy. Consequently, a team may be left feeling uninformed about the status of their project and will have to wait on a superior to provide them with answers to their questions.

Fourth, an autocratic leader will tend to restrict employees’ creative output. This can mean the absence of brilliant ideas. The happiest workers are those who feel that they are making a contribution to the group’s future.

Finally, an autocratic leadership style can be difficult to implement. Although it does work in some instances, it is usually more effective when implemented in a balanced manner. It is also important to know when it is the best time to implement it.

As a rule of thumb, consider the benefits and drawbacks of autocratic leadership style before implementing it. You should use the most appropriate leadership style for your organization’s needs. When considering the benefits and disadvantages of autocratic leadership, consider the following:

Clearly defining rules and roles will allow your group to complete projects on time. Providing tools and resources for your team will also help them succeed.

Transformational

Transformational leadership is a style of management that encourages employees to learn and grow. Leaders who practice this style are confident and optimistic, and work to help team members achieve their goals. They also encourage transparency, honesty, and open communication.

A transformational leader can have a large impact on a team’s performance. Employees of transformational leaders are more engaged with their jobs. They are more committed to their roles, and may even take on more responsibility. This could lead to a greater sense of satisfaction, which in turn could improve the quality of their services to customers.

Effect of leadership style on organizational performance

Employees who feel motivated and energized at work are more likely to perform better. These individuals are also more likely to stay with the company. This can also lead to lower costs for turnover.

The influence of transformational leadership on employee performance is most noticeable on absorptive capacity and organizational learning. Moreover, this type of leadership also has a positive effect on organizational commitment. Organizational commitment is the psychological identification an employee has with the organization. It’s an important indicator of an employee’s willingness to take on greater responsibility and provide quality services.

Another benefit of transformational leadership is that it can strengthen the firm’s ability to generate innovation. In order for organizations to develop innovation, it’s essential to have leaders who are always learning and improving their skills. To inspire high performance, a transformational leader should emphasize the importance of team spirit, intellectual stimulation, and a commitment to honesty and integrity.

Work-life balance

Ultimately, transformational leaders have to account for work-life balance. In today’s increasingly competitive work environment, job stress can lead to physical and mental health problems. Developing a healthy work-life balance can reduce stress and prevent burnout amongst employees.

Leadership style is an important factor in determining job satisfaction. Studies have found that individual-level TFL positively correlates with employees’ service quality. But future studies should be based on data from a wider range of employees. Data should be gathered from lower levels of management.

Transformational leadership style also has an indirect effect on employee performance. Using Structural Equation Modeling, the study explored the effects of leadership style on employee engagement.

Transactional

If you want to improve employee performance, you can use a transactional leadership style. This type of leadership has a clear organizational structure. Employees are expected to follow set goals without question. It is a good way to make sure all employees are working toward the same objectives. However, this style can also lead to a lack of creativity and innovation in the workplace.

Transactional leaders are focused on the short-term and on increasing productivity. They use rewards and penalties to motivate staff to perform better. A leader who uses this style is less likely to ask for ideas. He may also have a cold, detached attitude towards his employees.

Transactional leaders rely on metrics and authority from corporate hierarchies. They do not pay attention to personal feelings of their employees. Using a transactional style can create a rigid work culture that erodes morale and makes workers feel unimportant.

Positive and negative effects of leadership styles

Although a transactional leadership style is effective for improving performance during crises, it can also be ineffective for promoting long-term development. Leaders who employ this style will focus more on maintaining a status quo than on encouraging employees to explore new ideas.

Transactional leaders also lack the problem-solving skills needed for successful leadership. These leaders often rely on active monitoring and passive management by exception.

A transactional leader will usually give specific tasks to a team or direct report. The list of assignments will not inspire enthusiasm. In addition, employees will rarely have the opportunity to explore new ideas.

Leadership impact examples

Transactional leadership can also be a great solution for a job that requires a routine flow of work. For instance, a sales worker may appreciate a bonus structure that encourages good performance. But transactional leaders do not care about developing creative solutions.

Creating a smooth flow of operation can help an organization achieve its desired demand or production. Employees will feel more productive when they have clearly defined goals and understand what they can expect.

A transactional leadership style is a good choice for a business that wants to improve productivity and short-term results. However, it can also negatively affect performance and employee morale.

Participative

Participative leadership is a management style that requires all employees to take part in the decision-making process. This gives the organization a sense of community and encourages employee morale. It also gives all workers a chance to express their thoughts and opinions.

In addition to creating a more positive work environment, participative leadership boosts employee retention. Employees who feel that their opinions and ideas are heard are more likely to stick with the company and to accept changes.

When an organization decides on a new direction, a participative leader is likely to involve all employees. While this can make it difficult for some employees to trust the decision, it can also increase the employee’s confidence in the organization. The more involved a member of the team is in the decision-making process, the more invested they are in the company.

Effect of leadership style on employee performance

A leader’s behavior can be influenced by his or her personal interests, values, and goals. For example, if a manager is committed to providing leadership training, he or she may want to keep his or her subordinates informed of high performance expectations. He or she may also need to provide guidance on how to achieve these goals.

However, it is important to note that not everyone has the knowledge or the background to be a participative leader. That is why many managers prefer to use directive action within their participative leadership style.

Although there are no definitive proofs, there is a growing body of research that suggests that participatory leadership has an overall positive impact on employees. Some of the benefits include increased responsibility, improved morale, and better psychological well-being.

Using self-determination theory, scholars can analyze the influence of individual interests on the behaviors of leaders. Specifically, researchers can study how an individual’s goal may motivate him or her to participate in an organizational decision. These factors can help determine whether or not a participative leader will be effective in the workplace.

Among the most popular participative leadership behaviors are involvement in decision-making, listening to employees, and goal-setting. While these are some of the more obvious practices, there are others.

If you like what you read, check out our other leadership articles here.