Leadership Styles for Small Business Managers

There are several types of leadership styles, and each has its pros and cons. If you’re a manager in an SMB, it’s helpful to know the differences between each. These styles range from Autocratic to Bureaucratic to Considerate. Below, we’ll cover the differences between these styles and how they affect your business.

Autocratic

Autocratic leadership styles are common in many businesses but have pros and cons. While autocratic leaders make more decisions than other leaders, they rarely consult others or take feedback. This type of leadership can effectively boost productivity, but it can also lead to lower employee morale. The authoritarian style also tends to be strict, increasing stress levels and decreasing job satisfaction.

Autocratic leadership styles increase organizational hierarchy and can hinder innovation and creativity. These leaders set high expectations and don’t allow for second thoughts. Autocratic leaders can create a stressful work environment for employees and may not tolerate opposing opinions. In short, autocratic leadership styles can be detrimental to an SMB.

The pro side of autocratic leadership is that it can foster a work environment that is structured and rules-oriented. Autocratic leaders often don’t consult their teams and take credit for everyone else’s work. They also don’t listen to employees and expect people to follow their instructions.

Mary Barra and Nicole Junkermann

Mary Barra and Nicole Junkermann are two of the most successful women in business today. Both have shown that they are unafraid to innovate and lead with a strong focus on social impact. Their unique backgrounds and experiences make them ideal role models for women who wish to make it big in the industry.

Mary Barra was born in Royal Oak, Michigan, and has a Finnish heritage. She attended Kettering University and started working as an engineer at Pontiac Motor Division in Flint, Michigan when she was 18. She has worked with her father, Ray Makela, for over four decades. She later earned her MBA from Stanford Graduate School of Business in 1990. At Stanford, she was a member of Tau Beta Pi, the oldest engineering honor society.

As an investor, Nicole is an entrepreneur and philanthropist. She manages the NJH Group, which invests in media, technology, and healthcare companies. She is also the co-founder of the Female Founders Fund, which supports women-led startups. Nicole has made headlines and appeared on the cover of Forbes, Der Spiegel, and other publications. She is a woman who has worked hard and is willing to give back.

As women in business, Nicole Junkermann and Mary Barra have been instrumental in breaking down barriers. Their backgrounds are unique and diverse, and their leadership styles are highly complementary. In addition to their roles as CEOs, they have paved the way for future women to succeed in any field they choose. They have significantly changed the perception of the auto industry as a place for women.

Bureaucratic

A bureaucratic leader tends to channel everything they do into orderly processes. They only have a little room for creativity and can be pretty impersonal. They’re typically the leader you’d find in a family-run business. A bureaucratic leader’s actions are often dictated by their authority, not personal motivation.

A bureaucratic manager is likely to require a formal hierarchy of authority and will need to assign employees specific tasks based on qualifications. They will also need strict safety rules and guidelines. These traits can be valuable if you’re running a dangerous material disposal business or must ensure everyone works safely.

A bureaucratic leader encourages employees to follow processes and measure their performance. This can help the organization succeed in the long run. A bureaucratic leader doesn’t show any favoritism but evaluates them by their performance rather than individual contributions.

Transformational

Leaders’ styles significantly impact the business’s outcomes and the performance of its employees. Effective leadership combines authority and power. While authority includes legal rights, power is the ability to influence others. Many small businesses struggle with unethical behaviors around power and influence. Fortunately, there are a few different ways to improve the leadership style of your business. This article will explore four leadership styles, each with its benefits and risks.

Transformational leadership is a style of leadership that aims to create a radically different environment. It is especially beneficial for companies that are focused on innovation and change. It is also helpful in industries that rely on teams for success. This leadership style encourages teamwork and the development of new skills.

In addition to focusing on a culture change, it emphasizes personal development. Moreover, it encourages a more ethical work environment. It also fosters an open company culture, encouraging personal development.

Considerate

Considerate leadership styles are a crucial component of effective management. They emphasize personal relationships with subordinates, attending to their needs, and facilitating team cooperation. Considerate leaders also seek to understand the viewpoints of their subordinates and their work groups. Considerate leaders encourage team participation but maintain control over decision-making processes.

A hands-on leader may help foster high team commitment and motivation, but it is time-consuming and may lead to burnout. On the other hand, a high-standards style sets high standards for employees, which can lead to high productivity levels and burnout.

In small businesses, collaborative leadership styles are often used. Because small business teams are typically close-knit, this leadership style is natural for these businesses. It incorporates the leader into the team as a team member and keeps them informed.