Leadership Styles - Business Leadership & Project Management Lesson

Leadership Styles U N IT 1 B US IN E S S L E AD E R S H I P & P R OJE C T M AN AGE M E N T L E S S ON 1 Warm Up What is leadership? Why is it important in business? Business Leadership Styles Impact how a business runs and succeeds Four leadership style (Kurt Lewin): autocratic, democratic, tr...

Leadership Styles U N IT 1 B US IN E S S L E AD E R S H I P & P R OJE C T M AN AGE M E N T L E S S ON 1 Warm Up What is leadership? Why is it important in business? Business Leadership Styles Impact how a business runs and succeeds Four leadership style (Kurt Lewin): autocratic, democratic, transformational, and laissez-faire Extra: transactional Question: Can you think of a leader you admire? What style do they use? Jigsaw reading You’ll be put into 5 groups of 5 Each group will read about a leadership style, fill out the chart (expert group), be prepare to teach the other students After you have finished your part, you will go to a different group with students who does not have your part (jigsaw group) Each of you in the jigsaw group will present your findings about that leadership style, and help other students fill out their form. You should have all components in your form filled out. Autocratic: the commander Leader makes all decisions without input from team members Clear chain of command and quick decision-making Effective in crisis situations or with inexperienced teams e.g. military, emergency services Pros and Cons Pros Cons Fast decision Can lower morale Clear direction Not good for creativity Use in emergency Too much dependency When to use Autocratic During crises or emergencies when quick decisions are crucial In high-risk environments where mistakes can be dangerous With inexperienced teams that need clear guidance In situations requiring strict compliance with rules or procedures Democratic: the collaborator Leader involves team members in decision-making process Encourages creativity and engagement from all team members Can lead to higher job satisfaction and productivity E.g. creative industries or innovative companies Pros and Cons Pros Cons Increased employee Can be time-consuming satisfaction May lead to indecision Diverse ideas Shared responsibility When to use Democratic When working on complex projects that require diverse expertise In organizations that value innovation and creativity When team members are experienced and knowledgeable To build trust and improve team morale Transformation al: the inspirator Leader inspires and motivates team to achieve a shared vision Focuses on personal and professional growth of team members Often used in companies undergoing significant changes lead to high levels of employee engagement and loyalty Pros and Cons Pros Cons Inspires innovation Can be emotionally draining builds strong company may neglect short-term culture objectives high employee engagement When to use Transformational When an organization needs to adapt to changing market conditions To revitalize a struggling company or team When launching new, innovative products or services To build a strong, positive organizational culture Laissez-Faire: the free-rider Leader provides minimal guidance, allowing team members to work independently Can foster creativity and autonomy in experienced teams e.g. research or creative fields Requires self-motivated and skilled team members Pros and Cons Pros Cons Encourages independence Can lead to lack of direction Creativity missed deadlines, or conflicts personal growth When to use Laissez- Faire In creative or research-oriented environments With highly experienced and self-motivated team members When team members have specialized skills the leader may not possess In situations where innovation and out-of-the-box thinking are valued Transactional: the exchanger Leadership style based on exchanges between leaders and followers Leaders set clear expectations and goals Followers receive rewards for meeting objectives or punishments for failing Focuses on supervision, organization, and performance Think of it as a "give and take" approach Pros and Cons Pros Cons Clear structure and May stimulate creativity and expectations innovation Can be effective for short- Can create a culture of term goals reward-seeking Works well in crisis Doesn't focus on long-term situations vision or employee growth When to use Transactional In situations requiring clear structure and quick results When managing large groups with specific, repetitive tasks During crises or emergencies In military operations or law enforcement For short-term projects with defined goals The key is… Great leaders can adapt their style to fit different situations Consider the task, team experience, and urgency when choosing a style Flexibility is the key Combining elements of different styles can be beneficial Careers Tech startups often use democratic or transformational styles Manufacturing may lean towards autocratic leadership Creative agencies might prefer laissez-faire or democratic approaches Healthcare often requires a mix of styles depending on the situation Culture Different cultures may prefer certain leadership styles Some cultures value hierarchy, others prioritize consensus Summary Autocratic: Leader makes all decisions, clear chain of command Democratic: Involves team in decision-making, encourages creativity Transformational: Inspires and motivates team towards a shared vision Laissez-Faire: Minimal guidance, allows independent work Transactional: Based on exchanges, clear expectations and rewards Question Which style do you think would be most effective in a startup company? Quiz Discussion Should manager only use one style? Discuss the scenarios in your group, select one representative to explain your choice. What leadership style is it?