What Is the Best Leadership Style for the Companies?

What is the best leadership style for the companies?

The importance of leadership or management methods to achieve outstanding results in the companies has become critical now more than before. According to Raja & Palanichamy (n.d.), in the last years corporations have had significant transformations involving flatter and looser structures, eliminating staff positions, and horizontal access to information flow. As a result, leadership is considered as a crucial element in the beginning and implementation of the changes in the enterprises (Raja & Palanichamy, n.d.). Leadership styles can vary in how authority is distributed, whose requirements are fulfil, and how the decision-making process is made (Bass, 1990;Lippit, &White, 1939;Yukl,1998 in Bluemke,Mueller & Stahlberg, Schoel, 2011). Morhart, Herzog and Tomsack (2009) state that transformational leaders have a significant impact on the employees, reduce turnover intentions and improve the customers’ impression of a service brand. Some authors argue that autocratic, democratic and lasses fair are not always useful for business gain through employment of workers properly. Instead, the decentralized leadership helps to making a business more successful (Adhikari 2010). Others, however, discuss that certain leadership style is not only determined by the leader but also by the scenario context, and in some situations democratic or autocratic leadership technique should be more successful and, thus, requested (Bluemke,Mueller & Stahlberg, Schoel, 2011). In order to evaluate which leadership style is superior in the corporate world, this review will examine two aspects of management skills: the commitment of the employees and the impact on the performance of the organizations.