Leaders all over the world choose the best styles of leadership based on a number of different factors. They consider multiple factors before choosing the right style of leadership because many factors affect the styles of leadership. For example, Free Rein is a form of leadership which can only be practiced in case of specialist workers. Businesses with specialist workers can practice this kind of leadership.
In this leadership style, employees don’t control their employees, they give complete freedom to their employees and let them do anything they want. This can’t be done in case of businesses with average workers. So, are you planning to choose the right management sector or style of leadership? We’re sharing some information to help you make the right choice.
1) Centralized management sectors
Centralized management structures are very common in small businesses. It is a style of leadership where leaders like to control the business and keep all the power to themselves. They don’t like to delegate, there are multiple reasons why leaders don’t like to delegate. Some leaders are scared that their employees might perform better than them, some just don’t trust their employees enough to offer them some authority at the workplace. There are many benefits and drawbacks to this management sector. This style of leadership is recommended and beneficial for handling incompetent or inexperienced workers. It is also useful for small businesses because it helps in maintaining secrecy. However, there are many allegations of this style of leadership. This style of leadership de-motivates and discourages employees which can eventually lead to a high labor turnover rate (more employees will leave the company if they are dissatisfied), it can affect the image of the business and can also lead to a lower rate of productivity.
2) De-centralized management
This management structure comes under democratic leadership. Leaders in this style of leadership practice a participative style of management. They let their employees take part in the decision-making process of the business. They like to delegate power to their employees. This style of leadership motivates workers and raises their motivation levels which eventually leads to a better image of the business and a higher rate of productivity. However, it is not helpful in the case of inexperienced and unskilled workers and it can also lead to chaos in the business because too many cooks spoil the broth.
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