The formal line of authority that flows downward from the top management to lower-level employees, defining who reports to whom and who is responsible for making decisions
Have many responsibilities in the business and help it to operate effectively on a day-to-day basis, including directors, line managers and supervisors
Reflect the behaviours and attitudes of a leader towards their team members and influence the organisational culture, productivity and performance of a business
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
Leader holds absolute power and authority, sets direction and goals, makes decisions without seeking input, expects strict obedience and compliance, communication is mainly one-way downward
Can make swift decisions without lengthy discussions, speeds up decision-making, can be crucial in emergencies, may improve coordination and efficiency
Reduces employee morale, limits ideas for problem-solving and innovation, limits creativity as employees must follow strict instructions
Leader actively involves employees in decision-making, encourages discussion though has final say, features consultation, collaboration, delegation and teamwork
The choice of leadership style can be influenced by business circumstances, aims and objectives, personality and skills of the leader, skills and abilities of the workforce, and the competitive business environment