Leadership Models in business

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Types of Leadership Models in business

Leadership is one of the key elements behind success. A true leader is one who motivates and helps a group of people having common goals. Leadership is all about developing and inspiring team members. Like other fields, the business field requires true leadership in order to succeed.

Leadership models outline specific leadership qualities suitable for a particular situation. Each business requires a certain leadership model. But a combination of models can bring sustainability too. After all, it gives a proper guide on how to lead effectively in a specific situation. The precise way to govern your employees is encapsulated in a leadership model.

Although it may seem like the leadership model is the same as leadership styles, in reality, they’re quite different. Leadership styles emphasize individual and follow ideals, culture, etc derived from leadership models. In your business, a leadership model that fits your goals will ultimately help you a long way.

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Types of Leadership Models in business

There are numerous leadership styles and they fit under some common leadership models. Although there are several leadership models. 6 common yet effective ones are described below:

1. Team-Oriented Leadership:

Team-Oriented Leadership

If you are the kind of leader who puts collaboration above everything, this model is for you! Through cooperation and encouragement, this model thrives in enhancing the strength and engagement of each employee. It focuses on building up every member’s potential, confidence, and productivity individually. After all, teamwork beats do execute tasks much faster.

This leadership model is effective in terms of efficiency, productiveness, and satisfaction of the team. For this reason, this model is also known as people-oriented leadership. Examples of some leadership styles that follow the main concept of this model are coaching, participative, etc.


2. Authoritarian Leadership:

Authoritarian Leadership

Unlike the team-oriented model, the leaders here have very little interest in collaboration. Rather they are very task-oriented to reach their goals. Instead of encouragement, this type of leader motivates the team through rules and punishment. They tend to take total control over the employees.

Although this might work in urgent situations, it can also lead to employee dissatisfaction. This model is also known as the autocratic model. This model is directed by the people on top. It’s like a chain of commands. The employees are to implement the orders and tasks given by the leader. Though this model seems poor, it’s effective for some companies and especially in a rigid time and situation. Depending on the company and its goals, this model can be surprisingly productive.


3. Laissez-Faire Leadership:

Laissez-Faire Leadership:

This model is the most laid-back leadership model. The model name “laissez-faire” is formed on a French phrase that means “let it be”. This gives people the freedom to do their work the way they want. As a result, they can work happily. This works best for companies that emphasize creativity, talent. The leader motivates the employee to spur innovation. Moreover, the leader encourages the team to bring out the full potential they possess.

In this model, the leader requires to monitor the employee’s performances on a regular basis. Not only that, but the leader must also give their own opinion. This system helps to expand the company easily. This model is effective and likable by most employees.


4. Situational Leadership:

Situational Leadership:

This model is a bit unique. Based on the current capacity and capability of the employees, the employees are given certain tasks. Since the leader has a much clearer idea of the employees’ capacity, the expectations, as well as the deadline, are practical.

Along with the employees, the leader has to improve their own skills. And in order to do so, relevant initiatives are to be taken. This will improve the company’s talent pool. This results in benefiting the company’s overall evolution and potential. Thus, this is a flexible model.

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5. Shared Leadership:

Shared Leadership

In this model, the authority is bestowed on a group of people instead of an individual. Shared leadership has more flexibility and encourages a collaborative spirit among the members. A feeling of teamwork ignites inside the members motivating them to work harder.

No single manager has to make all the decisions on every level because there are other decision-makers for each level. Your employees can even take a breath in the breathing room in the office. This will relieve stress and enhance problem-solving efficiency.


6. Bureaucratic Leadership:

Bureaucratic Leadership

Sometimes, managers can play better roles as administrators than as hands-on leaders. Their prime focus is on performance and the outcome. It requires proper planning. This model is popular for both small and big businesses. You will adhere to a strict chain of orders and a strong responsibility for accountability to the shareholders and directors. You will create a set of unquestionably non-negotiable processes.

The employees will thus be bounded by precise metrics and objectives. This enables the managers to track the results for evaluation. Although this business model is effective in industries with legal codes, this is not effective in creative companies. The reason behind this is, this model discourages individuality and creative expression.


7. Authentic Leadership

Authentic Leadership

Studies have shown that this model is based on sincerity overall. This model focuses on four aspects: self-awareness, relational transparency, balanced processing, and internalized moral perspective. As a leader, you will be well aware of your strengths and weaknesses. You will realize the impact of your interaction with your employees in depth.

The more you will progress with learning, the more your employees will trust you. Being an open book for the staff is important in this model. The leader neutrally takes decisions with sincerity irrespective of office politics, bias, or emotional attachments. No external pressure or influence will affect your leadership in your business.


These were some of the most popular leadership business models. By now, You should have a clear understanding of which type of business model is suitable for you. All the models have their own pros and cons. According to the type of business that you are into, you can choose the most relevant one for you. For example, if you’re into a creative business, you can not choose a strict leadership model.

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