However, it is important that leaders monitor performance and effectively communicate expectations to prevent work standards slipping. Researchers have found that this is generally the leadership style that leads to the lowest productivity among group members. Laissez-faire leadership is characterized by very little guidance from leaders. The leaders will provide the tools and resources needed; however, they allow complete freedom for followers to make their own decisions. Group members are expected to solve problems on their own while power is handed over to followers.
In Laissez Faire leadership style, the leader allows group members to set their own goals, to take decisions and to implement those decisions themselves. Features of Laissez Faire leadership style Subordinates have full freedom as regards No guidelines and rules of behaviour are established for the conduct of members It is directionless. The leader doesn’t direct his group members It is inspiration less. The dealer does not inspire group members Disadvantages of Laissez Faire It may lead to chaos and misunderstanding of group goals since group markers are allowed to set their own goals It doesn’t promote group morale, satisfaction, and development of group cohesiveness It is directionless since the leader does not direct his group members It emphasises neither production nor employee satisfaction Employees are left to drifting. Basic of distinction Autocratic style Democratic style Laissez Faire Delegation of authority Little More
Bazerman discusses the fact the proper decision making severely depends on fairness as well as ethical business practices. “Issues of fairness and ethics are essential to a complete understanding of decision making” (Bazerman 132). One must consider all of the ethical implications and potential points of conflict when making a decision. Also, aside from the questions surrounding the ethics of a matter, one must also consider how the decision will be perceived and whether or not all involved parties will conclude that a decision is fair. “Most fairness research has avoided making evaluative statements about the rationality of fairness judgements.
It focuses on generality but fails to consider certain socio-economic features and therefore is significantly limited in explaining real world behaviour of decision makers. On the other hand, bounded rationality theory provides a more accurate view to real life human behaviour as it takes into account the constraints on the information processing capabilities of the decision maker whist still maintaining generality. Furthermore, this bounded approach to rationality uses ‘satisficing’ and ‘heuristics’ to explain real life decision making when the search for the optimal solution
This leadership style associated with disillusionment, wastefulness and lack of ability . As demonstrated by (Boonyachai, 2011), this leadership style allows group to make isolated decisions, as leader no honest goodness power. Specifically, leader answers questions, gives information, or offers backing group. The assistants of Laissez-Faire leaders need to search for various sources reinforce them settling on decisive decisions. The Laissez-Faire leadership style is likewise called "hands-off¨ style.
The work of an Autocrat is to manage the direction of all goals and work, with little to no input from the team. They have all the power to make decisions, and they use it. They don’t worry about input, and do not leave room for subordinates to sub-manage. This is a style most often used when a great deal of scrutiny is necessary to have a successful end product, but can be untenable in less clear-cut situations. In an autocratic leadership style, the person in charge has complete authority and control over decision making.
PARTICIPATIVE (DEMOCRATIC) LEADERSHIP A participative leader, rather than making autocratic decisions, seeks to involve other people in the decision-making process through autonomous work groups or self-management work teams. An individual manifesting this type of leadership recognizes each person’s skills, contributions and worth to the group. This management style allows workers to take responsibility, accountability, and authority over their work. However, the democratic leader always maintains the final decision making authority. This style is usually more effective in employee owned companies and is less effective in larger multi-layered organizations.
Their works focus on several aspects of the dynamic power relationship between leaders and followers, like: personal traits of the leader, charisma, contextual intelligence, and decision making. This school of thought uncovers the public conception of how leadership is judged. Leadership is not primarily judged on the individual, but on context in which leaders find themselves. The success of these leaders is based on their ability to balance soft and hard power in regard to the context of their environment, as politics and the environment could constrain or influence their decision making. In order to discuss the judgment of leadership based on contextual aspects, there needs to be an understanding of which traits are relative to the leader and which are relative to the environment.
Different scholars identified various kinds of leadership styles that affect the job performance, satisfaction and learning and development of subordinates. Warrick, D.D (1981) cited that there are no doubt variables other than a leader’s style that affect employee performance and development but leadership style plays a significant role and not to be underestimated. An awareness of leadership styles and their consequences are very important because it may either facilitate or inhabit skill development. The major theories on leadership are the traits, leadership styles and contingency theories. Out of those, leadership styles and contingency theories dominate the current literature on leadership.
Yukl (2002) emphasized that this approach seeks to explain the leadership through the types of the power possessed and the ways of the power exercised by the leaders. In the organization, some of the leaders gained power through their position or job authority. But, there are also leaders who influence their followers through their personal characteristics and relationship instead of using their power. The influential leadership involved are the transformational leadership and transactional leadership. Transformational leadership usually concerned with emotion, values, ethics and standards.