Great leadership directly affects employee engagement and company profitability. Learn how to adapt your team management style for the greatest impact.
Leadership plays a significant role in the success or failure of any organization. And great leadership has a direct impact on employee engagement and profitability, engaged employees can lead to 21% higher revenue.
Impacting employee engagement falls on leadership and how they lead teams and individuals. And every successful leader develops a style based on their own personality, goals, and company culture based on one of these three types of leadership styles: autocratic, democratic, and laissez-faire.
Leadership serves an important role in the success or failure of any organization. And great leadership has a direct impact on employee engagement and profitability.
These can drive 21% higher revenue and their impactful employee engagement falls on leadership and how they command teams and individuals.
Every successful leader develops a style based on their own personality, goals, and company culture based on one of these three types of leadership styles: autocratic, democratic, and laissez-faire.
The three types of leadership styles in business:
(By understanding these most common business leadership styles, you will be able to move between them as needed, and set yourself up for success.)
1. The autocratic business leader
The autocratic leader understands the strength of authority. Autocratic leaders are not interested in opening up the decision-making process to the entire group. Instead, they choose to bear the leadership completely alone. They expect those who fall under their authority to follow orders.
2. The democratic business leader
A democratic leader encourages the free exchange of ideas throughout the team. All members have a valued voice and the leader acts as a spokesperson or facilitator. Democratic leaders rely on the participation of every member of the group. They emphasize the value and expertise each member brings to the table. Every team member shares the freedoms and responsibilities of leadership.
3. The laissez-faire business leader
Laissez-faire leaders are the hands-off type. They assign tasks and give general direction but they’re usually uninvolved in day-to-day tasks. Employees decide on the best approach to fulfill their responsibilities. In addition, they place great trust in the individual. They rely on them to stay self-motivated, on task, and accountable. If problems arise, these leaders are available to offer guidance, but only upon request. Laissez-faire leaders allow each member of their team to succeed or fail based on their own abilities.
Choose your type of leadership style
Review your current team dynamic. Are they excelling or unengaged? If it’s the latter, you might want to review your methods. Figure out what needs to stay the same and what needs to change. A leader sets the tone for the entire team. By changing the way you lead, you may find that your team will adapt, evolve, and improve.
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