Leadership and its Affects on a Business

Businesses are set up with the intention of growing and continuing to exist and achieve their set goals. To accomplish that, the management needs to have the staff and objectives in mind. How management style contributes to the success or failure of a business is a sophisticated topic with several factors playing different roles (Anderson, 2013).

How to Set a Business Tone

A business tone is an important aspect for any business, either big or small. The tone serves as a guideline for employees about what one needs to achieve and how one should achieve it. It also stipulates the minimum level of acceptable employee behavior within the organization and how they should behave when relating with external entities regarding business interest. Any new employees are, therefore, aware of what is expected of them at all times. Normally, a business tone is set by developing mission and vision statements that reflect what an organization needs to accomplish now and in the future (Pirraglia, n.d.).

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Types of Leadership Styles

There are many types of leadership styles; some of them have similar approaches to business management while others combine various aspects of more than two styles. However, the most widely practiced leadership styles in most organizations are authoritarian, democratic and laissez-faire ones. Authoritarian and democratic are two completely different styles. The democratic one encourages relationships while the authoritarian style focuses only on achieving missions and leaders spare no or little time on bonding with their followers (Vitez, n.d.).

Authoritarian Leadership Style

Authoritarian leadership is common in the disciplined forces such as the military and the like. The leaders in this system possess the power over their subjects and its only their plan that is important. The tone here is commanding and employees are expected to follow the goals of the organization, which are normally well stipulated and defined. There is a clear division between the leaders and workers and the balance between the two is not expected to change under any circumstances. The workers here have little or no hand in the decision made by their leaders. The leaders normally have a high level of confidence and they believe that they are capable of making all the necessary decisions the organization needs to succeed (Vitez, n.d.).

How Authoritarian and Other Bad Leaderships Affect Success

This style of leadership is particularly necessary when decisions need to be made within a short time’s notice. There may be no time for consulting all employees and seeking their opinion on the matter, hence leaving authoritarian leadership the only viable option in navigating certain situations. Normally, policies are well stipulated and employees are strictly required to adhere to the policies without questioning. If this style is used effectively, it can lead to great success in some aspects. However, in this case, employees feel a sense of disconnection from the decision-making processes. This may lower their morale and prompt them into seeking alternative employment opportunities at the expense of the company (Germano, 2010).

Employees may spend most of company resources, such as time and assets, when searching for new jobs and opportunities. As a result, a company may have a high employee turnover rate, which cannot be good for any organization because a lot of company resources are spent on acquiring and training new employees. In general, such occurrences affect how goals are achieved within an organization. Normally, bad leadership is felt throughout an organization, impacting every aspect of it. Employees are frustrated when bad leadership is in rank, causing corporate culture to be something only communicated but not practiced.

Bad leadership does not communicate any activities to its employees, making the workplace to be run basing on rumors and politics. Thus, employees do not envision themselves fitting in what the organization seeks to achieve in the long run, because objectives and missions are not communicated in a clear manner. As a result, they lack respect for each other, leading to more serious issues. Such leadership rewards employees that play dirty against their colleagues to get ahead (Anderson, 2013).

How Good Leadership Achieves Success

Good leadership is not something one wakes up to one morning. Leaders develop it over time with a lot of experience, personal capabilities and talent. Success in leadership is achieved through instinctual decision-making and democratic leadership. Good leaders make good decisions fast and ensure that these decisions contribute to the success of the organization. Some of the things good management does to achieve goals include the following.

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Make Communication Easier

Managers in any business hold the highest level in as far as daily activities and future plans of an organization are concerned. As such, employees may view them with fear, but good leaders deflect attention from themselves and their ranks and encourage free expression by the staff members. Thus, all workers are free to air their perspectives and points of view confidently without fear of victimization. An approachable environment is created for the betterment of an organization (Germano, 2010).

Decision Making

Good management involves all its employees in the decision-making process. There are times when a manager may make the decision and require others to follow or they may direct the staff into reaching a conclusion in a given matter. As a result, employees feel a part of the objectives of a company and they know exactly how they fit into them. Their actions are, therefore, directed at achieving the goals (Anderson, 2013).

Communication of Expectations

Good management communicates its expectations to the work force and all stakeholders. Performance expectations of every worker are communicated in a clear manner while responsibilities are divided and allocated as well. Communication of objectives keeps employees on track and focused on the bigger goal that an organization has. Good management, therefore, achieves objectives through establishing proper communication channels and encouraging transparency (Anderson, 2013).

Leading by Example and Being Accountable

How the managers behave and portray themselves to the staff has a great influence on the behavior of the staff. Good leaders maintain consistency in their behavior with a keen sense on how their actions are viewed by others. They allow to be managed by their colleagues but are not controlled by them. Accountability makes others feel that the manager is being proactive to their needs; therefore; they work harder to achieve success and goals (Germano, 2010).

Measure and Reward Performance

Good managers are keen to realize how the business is performing and whose actions are responsible for the bulk of the success achieved. Those who work hard and put in extra efforts should be rewarded to encourage them to work harder, feel appreciated, and find no reason for seeking employment elsewhere. When employees are happy and feel acknowledged, the business is likely to succeed. The employees who are appreciated view the company as their home and will do anything to ensure that their home succeeds. They will go an extra mile in their responsibilities provided they are assured of being recognized and even promoted where necessary and possible (Germano, 2010).

Invest in Relationships

Any great leader will seek to build an environment that is comfortable to work in for themselves and their juniors. Leaders should not focus on protecting their domain; instead, they should focus on the relationships that are mutually beneficial to them and their employees. An organization is likely to grow faster and be better if the workplace is not stressing. Output is increased and people enjoy reporting to work and are not so eager to leave.


Business success and failure are closely related to how management carries out its duties and responsibilities. The management style a company chooses should be the one that encourages and fosters favorable relationships between the management and staff and also encourages freedom of speech and expression of perspectives in a bid to achieve objectives. The company objectives and expectations should be communicated clearly throughout the company to place everyone into perspective about what is expected of them and how they fit in what the company hopes to achieve in the short and long run.

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