Within modern management thought, there are a number of theories and opinions about the most effective leadership styles in management. There is no definitive answer for which theory works best in every situation, so it is important to understand multiple styles of leadership and the situations they are well-suited for. Listed here are three prominent management leadership styles and their defining qualities.
The first leadership style in management to discuss is also the simplest: transactional leadership. While a number of distinguishable subcategories exist under the umbrella of transactional leadership, this broad term refers to the idea that people are motivated by rewards and should be led by clearly defining rewards in exchange for certain behaviors. Although the comparison is crude, you can think of transactional leadership in a similar manner as a dog and its master. In return for fetching a stick, the dog gets a treat. Transactional leaders outline clear expectations and establish systems of recognition and reward for when those expectations are met. Managers using the transactional style of leadership often operate under the theory of management by exception. With this mentality, managers pay little attention to parts of the business process that are working well and focus their attention only on areas that need immediate improvement.
Building on the transactional mindset, the transformational leadership style of management focuses less on individual tasks and rewards and more on inspiring and motivating employees to look at the big picture. Transformational leaders speak frequently about the overall mission of the organization and encourage individuals to go above and beyond their required assignments. A transformational leader will also work to establish genuine, trusting relationships with subordinates, as these are essential for inspiring the transformative change they seek. Instead of only focusing attention on problem areas, those using the transformative leadership style may look at processes that are functioning well and search for new ways to perform the task to take it to an even higher level.
Finally, the participative leadership style of management takes much of the focus off the manager and instead looks to the entire organization for leadership. A participative leader involves individual employees or groups of employees in the decision making process and lets them help determine the direction of the organization. Most often, the final decision is made jointly between the manager and the team of subordinates. The leadership style can be especially effective in environments where collaboration and discussion are natural and common. Managers must be cautious, however, because asking for the participation of subordinates but ultimately going against their opinions can lead to mistrust and skepticism.
These three leadership styles in management are a good foundation to begin understanding how to effectively manage diverse organizations. These styles shouldn’t be viewed as opposing forces, but complementary techniques that can each be utilized in different circumstance to maintain an effectively motivated workforce.
Sources:
Robbins, Stephen and Timothy Judge. Organizational Behavior. 13th ed. Prentice Hall: Upper Saddle River, New Jersey. 2009.
