2) Impact and application of the leadership styles

• Applications of the five leadership styles in the workplace

  Democratic leadership style

  • The leader knows his/ her limitations and is open to new ideas.
  • Teamwork is promoted and the inputs of employees are valued.
• Applications of the five leadership styles in the workplace

  Autocratic leadership style

  • When a crisis arises within an organisation and require immediate action on the part of the leader.
  • The leader has all the information at his/ her disposal and does not require further input from employees.
• Applications of the five leadership styles in the workplace

  Laissez-faire/ Free reign leadership style

  • Leadership potential exists amongst employees and that they need opportunities to acquire additional skills.
  • Employees who are experienced in their chosen field, are often trusted on by the leader to make responsible decisions.
• Applications of the five leadership styles in the workplace

  Charismatic leadership style

  • The leader wants to boost the morale of employees, who may be demotivated.
  • Confidence levels of employees are low and employees need to be inspired.
• Applications of the five leadership styles in the workplace

  Transactional leadership style

  • The leader wants employees to exceed target levels.
  • Employees have a low morale.
  • The business wants to maximise employee performance.
• The impact of the democratic leadership style

  Positives:

  • The leaders do not have to rely on their knowledge to solve complex problems.
  • Employees feel motivated, resulting in increased productivity levels.
  • Regular communication between leaders and employees lead to improved decision-making.
• The impact of the democratic leadership style

  Negatives:

  • The reliability of feedback provided by some employees may not be accurate.
  • The leader could delay making decisions because he/ she is waiting for inputs from employees.
  • Could be demoralising the employees if leader does not consider their inputs before making decision.
• The impact of the autocratic leadership style

  Positives:

  • Leader in a position to make quick decisions without consulting employees.
  • Clear guidance could be given to new appointed staff.
  • Clear direction from the leader, provides certainty to new employees.
• The impact of the autocratic leadership style

  Negatives:

  • Employees could become frustrated if their inputs are not considered.
  • The organisation could lose out on innovative ideas from employees.
  • The leaders may experience resistance from experienced employees.
• The impact of the laissez-faire/ free reign leadership style

  Positives:

  • Employees trusted and given responsibility of making decision in areas of their expertise.
  • Employees don't need to consult leader when making decisions that may benefit the organisation.
  • Employees experience personal growth as they are allowed to make decisions on their own.
• The impact of the laissez-faire/ free reign leadership style

  Negatives:

  • Leader does not become involved in disagreements amongst employees.
  • Employees could be hesitant to take decisive actions, which could affect their work performance.
  • Uncertainty regarding clear decision-making could influence the morale of employees negatively.
• The impact of the charismatic leadership style

  Positives:

  • Employees inspired by the passion of the charismatic leader.
  • Employees motivated to exceed their expectations and overcome fears.
  • Employees made to feel valued, which encourages them to work harder and improve productivity levels.
• The impact of the charismatic leadership style

  Negatives:

  • Employees rely on leader to improve their morale levels.
  • Leader may promote own personal interest, instead of leading for the benefit of the organisation.
  • Organisation may be over-reliant on the presence of the leader, could harm the organisation if the leader should leave.
• The impact of the transactional leadership style

  Positives:

  • Employees are aware of the punishment, should targets not be met.
  • Linking rewards to targets encourages workers t work effectively.
  • Employees given targets and they know the targets they need to work towards.
• The impact of the transactional leadership style

  Negatives:

  • Employees may feel demoralised if they're punished for not meeting targets.
  • Leader may need to monitor performance of employees to ensure targets are met.
  • Health of employees could be negatively affected by increased stress levels in pursuit of targets by employees.