How leadership styles can have an impact on an organisation’s strategic decision-making process

  • August 28, 2018

Management has plans, techniques and concentrations on the execution of the strategy whereas a leader maintains human capital, he/she direct the staff, coordinate and encourage them to execute the strategy with at their best performance to achieve the final mission of the organisation. Leadership styles and management can impact the strategic decisions as the right leadership style is needed while performing a strategic decision. If the right leadership style is not followed when performing a strategic decision, then it will fail the decision. Therefore, the organisation must identify which style of leadership should be used in which sort of strategic decision. In today’s word, the business environment is much competitive. Thus the organisation must use the best leadership and management practises in performing strategic decision to accomplish organisational goals.


For an organisation to be successful, a right style of leadership is needed. Following the wrong style of leadership, an organisation will not be able to accomplish its business objectives.


There are five leadership styles have been introduced by Richard L.H. and Katherine C.B., and they are;


Autocratic Leadership

This leadership style can be defined as the leader is the decision maker indeed who orders the tasks and does not allow the staff to participate in the decision-making process. In this leadership style, the leader is the sole decision-maker, and the workforce is the followers of his decisions.  This leadership style is used in situations where the organisation must make immediate and effective decisions and unable to make use of time in consultation with its other members. Therefore, the decision maker uses his outright power to create a final decision that must be followed by everybody.


The manager makes decisions as much as possible and uses his outright authority of decision making in Autocratic leadership. The primary decision maker in the decision-making process is the manager who does not allow his employees to contribute and where the employees are given directions to follow his decision. This leadership style is ideal for workforces who are average or mediocre in performing because the leader keeps his eye on his employees who should perform the work as per the given instructions. The quality, as well as the performance of the workforce, will be increased by following this.



Bureaucratic Leadership

In this leadership style, the leader follows theories and procedures strictly. This leadership style is most excellent for areas where specific standards should be followed. Pharmaceutical firms practise this leadership style as the specific standard and formula should be needed to prepare the medicine.


Bureaucratic leadership style helps an organisation to accomplish their standards better while maintaining their quality and increase its safety.



Charismatic Leadership

Charismatic leadership style cannot be learned merely as it is a natural characteristic of a leader. Such leaders are the influencers and encourage the workforce to do well. The workforce follows these leaders with a higher trust level. These leaders use their charisma to convince people, help the workforce to picture the vision and mission of the organisation and help them to envision how they could contribute towards the success of the organisation. An organisation can follow this leadership style in situations where the organisation needs its workforce to set efforts to accomplish extraordinary performance.



Democratic Leadership

To build the trust level within the workforce and the key decision maker, the leader practises this leadership style. In this leadership style, it believes the ideas and opinions of the workforce can result in efficient and effective outcomes. Therefore, in such situations, the workforces are encouraged to participate in the decision-making process.


This approach produces an environment where everyone can share their points of view. Therefore, the workforce will be encouraged and starts loving the work they do as they are involved in the decision-making process of the organisation. Creative thinking is encouraged by this leadership style. The staff will share their ideas as they are encouraged to while becoming more committed to their work. Such approach will develop an environment in an organisation where would be free from office politics as people participate and discuss their concerns regarding the decision nevertheless, an approach will improve the trust level between the workforce and the leader.



Delegative Leadership

This leadership style is also known as Laissez-faire Leadership that is used in situations where the workforce possesses enough skills to make decisions. The leader gives the authority for the workforce to make decisions on their own while the workforce can get the consultancy from the leader.


In conclusion, for an organisation to achieve success in its goals and objectives, the organisation must make the use of the most suitable leadership style that will fit into the situation.



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