What is Leadership

Leadership is a process by which an executive can direct, guide and influence the behavior and work of others
towards accomplishment of specific goals in a given situation. Leadership is the ability of a manager to induce
the subordinates to work with confidence and zeal.

Leadership is the potential to influence behaviour of others. It is also defined as the capacity to influence a
group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions.

According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it towards goals.”

Features of Leadership

• Influence the behaviour of others: Leadership is an ability of an individual to influence the behaviour
of other employees in the organization to achieve a common purpose or goal so that they are willingly
co-operating with each other for the fulfilment of the same.
• Inter-personal process: It is an interpersonal process between the leader and the followers. The
relationship between the leader and the followers decides how efficiently and effectively the targets of
the organization would be met.
• Attainment of common organizational goals: The purpose of leadership is to guide the people in an
organization to work towards the attainment of common organizational goals. The leader brings the
people and their efforts together to achieve common goals.
• Continuous process: Leadership is a continuous process. A leader has to guide his employees every
time and also monitor them in order to make sure that their efforts are going in the same direction and
that they are not deviating from their goals.
• Group process: It is a group process that involves two or more people together interacting with each
other. A leader cannot lead without the followers.
• Dependent on the situation: It is situation bound as it all depends upon tackling the situations present.
Thus, there is no single best style of leadership.

Importance of Leadership:

• Initiating Action: Leadership starts from the very beginning, even before the work starts. A leader is a
person who communicates the policies and plans to the subordinates to start the work.
• Providing Motivation: A leader motivates the employees by giving them financial and non-financial
incentives and gets the work done efficiently. Motivation is the driving force in an individual’s life.
• Providing guidance: A leader not only supervises the employees but also guides them in their work.
He instructs the subordinates on how to perform their work effectively so that their efforts do not get
wasted.
• Creating confidence: A leader acknowledges the efforts of the employees, explains to them their role
clearly and guides them to achieve their goals. He also resolves the complaints and problems of the
employees, thereby building confidence in them regarding the organization.
• Building work environment: A good leader should maintain personal contacts with the employees and
should hear their problems and solve them. He always listens to the point of view of the employees
and in case of disagreement persuades them to agree with him by giving suitable clarifications. In case
of conflicts, he handles them carefully and does not allow it to adversely affect the entity. A positive
and efficient work environment helps in stable growth of the organization.
• Co-ordination: A leader reconciles the personal interests of the employees with the organizational
goals and achieves co-ordination in the entity.
 • Creating Successors: A leader trains his subordinates in such a manner that they can succeed him in
future easily in his absence. He creates more leaders.
• Induces change: A leader persuades, clarifies, and inspires employees to accept any change in the
organization without much resistance and discontentment. He makes sure that employees do not feel
insecure about the changes.

Types of leadership styles

Here's an overview of eight common leadership styles, from autocratic to visionary, with a look at the benefits
and challenges of each style:

1. Autocratic leadership style

Also called the “authoritarian style of leadership,” this type of leader is someone who's focused primarily on
results and team efficiency. Autocratic leaders often make decisions alone or with a small and trusted group
and expect employees to do exactly what they’re asked.

Autocratic leaders typically have self-confidence and are self-motivated. They communicate clearly and
consistently, are dependable and follow the rules. They value highly structured environments and are
proponents of supervised work environments.

The benefits and challenges of an autocratic leadership style include:

Benefits: Autocratic leaders can promote productivity through delegation, provide clear and direct
communication and reduce employee stress by making decisions quickly on their own.

Challenges: Autocratic leaders are often prone to high levels of stress because they feel responsible for
everything, plus their lack of flexibility can lead to team resentment.

2. Bureaucratic leadership style

Bureaucratic leaders are similar to autocratic leaders in that these leaders expect their team members to follow
the rules and procedures precisely as written. The bureaucratic style focuses on fixed duties within a
hierarchical system, where each employee has a set list of responsibilities, and there's little need for
collaboration and creativity.

This leadership style is most effective in highly regulated industries or in departments like finance, health care
or government. This style may fit your leadership approach if you're detail-oriented and task-focused, value
rules and structure, are strong-willed and self-disciplined and have a great work ethic.

The benefits and challenges of a bureaucratic leadership style include:

Benefits: This style can be efficient in organizations that need to follow strict rules and regulations. These
leaders separate work from relationships to avoid clouding the team's ability to hit goals.

Challenges: This style doesn't promote creativity, which can feel restricting to some employees. This
leadership style is also slow to change and does not thrive in an environment that needs to be dynamic.
3. Coaching leadership style

A coaching leader is someone who can quickly recognize their team members’ strengths, weaknesses and
motivations to help each individual improve. This type of leader often assists team members in setting smart
goals and then provides regular feedback with challenging projects to promote growth. They set clear
expectations and creating a positive, motivating environment.

The coach leadership style is one of the most advantageous for employers as well as the employees they
manage. Unfortunately, it’s often also one of the most underused styles—largely because it can be more time-
intensive than other types of leadership. Coaching leaders are supportive and value learning as a way of
growing. They're self-aware, offer guidance instead of giving commands and ask guided questions.

The benefits and challenges of a coaching leadership style include:

Benefits: Coaching leadership is positive in nature and promotes the development of new skills, empowers
team members and fosters a confident company culture. They're often seen as valuable mentors.

Challenges: While this style has many advantages, it can be more time-consuming as it requires one-on-one
time with employees which can be difficult to obtain in a deadline-driven environment.

4. Democratic leadership style

The democratic style (aka the "participative style") is a combination of the autocratic and laissez-faire types
of leaders. A democratic leader asks their team members for input and considers feedback from the team before
they make a decision. Because team members feel their contributions matter, a democratic leadership style is
often credited with fostering higher levels of employee engagement and workplace satisfaction.

Democratic leaders value group discussions and provide all information to the team when making decisions.
They promote a work environment where everyone shares their ideas and are characteristically rational and
flexible.

The benefits and challenges of a democratic leadership style include:

Benefits: Working under the democratic leadership style, employees can feel empowered, valued and unified.
It has the power to boost retention and morale. It also requires less managerial oversight, as employees are
typically part of decision-making processes and know what they need to do.

Challenges: This leadership style has the potential to be inefficient and costly as it takes time to organize group
discussions, obtain ideas/feedback, discuss possible outcomes and communicate decisions. It also can add
social pressure to members of the team who don’t like sharing ideas in group settings.

5. Laissez-faire leadership style

The laissez-faire style is the opposite of the autocratic leadership type, focusing mostly on delegating many
tasks to team members and providing little to no supervision. Because a laissez-faire leader doesn't spend their
time intensely managing employees, they often have more time for other projects.
Managers may adopt the laissez-faire style when all team members are highly experienced, well-trained and
require little oversight. However, it can cause a dip in productivity if employees are confused about their
leader’s expectations, or if some team members need consistent motivation and boundaries to work well.

The benefits and challenges of a laissez-faire leadership style include:

Benefits: The laissez-faire leadership style encourages accountability, creativity and a relaxed work
environment, which often leads to higher employee retention rates.

Challenges: This style typically doesn't work well for new employees, as they need guidance and hands-on
support in the beginning. Other employees may not feel properly supported.

6. Pacesetter leadership style

The pacesetting style is one of the most effective for achieving fast results. Pacesetter leaders primarily focus
on performance, often set high standards and hold their team members accountable for achieving their goals.

While the pacesetting leadership style can be motivational in fast-paced environments where team members
need to be energized, it’s not always the best option for team members who need mentorship and feedback.

The benefits and challenges of a pacesetter leadership style include:

Benefits: Pacesetting leadership pushes employees to hit goals and accomplish business objectives. It
promotes high-energy and dynamic work environments.

Challenges: Pacesetting leadership can also lead to miscommunications and stressed-out employees as they
are always pushing toward a goal or deadline.

7. Servant leadership style

Servant leaders live by a people-first mindset and believe that when team members feel personally and
professionally fulfilled, they’re more effective and more likely to regularly produce great work. Because of
their emphasis on employee satisfaction and collaboration, they tend to achieve higher levels of respect.

Servant leaders motivate their teams and have excellent communication skills. You may find this leadership
style a match for your own style if you tend to encourage collaboration and engagement among team members
and if you commit to growing your team professionally.

The benefits and challenges of a servant leadership style include:

Benefits: Servant leaders have the capacity to boost employee loyalty and productivity, improve employee
development and decision-making, cultivate trust and create future leaders.

Challenges: Servant leaders can become burnt out as they often put the needs of their team above their own
They may have a hard time being authoritative when they need to be.

8. Visionary leadership style

Visionary leaders possess a powerful ability to drive progress and usher in periods of change by inspiring
employees and earning trust for new ideas. A visionary leader is also able to establish a strong organizational
bond. They strive to foster confidence among direct reports and colleagues alike.

Visionary style is especially helpful for small, fast-growing organizations, or larger organizations experiencing
transformations or restructuring. Visionary leaders tend to be persistent and bold, strategic and open to taking
risks. They're often described as inspirational, optimistic, innovative and magnetic.

The benefits and challenges of a visionary leadership style include:

Benefits: Visionary leadership can help companies grow, unite teams and the overall company and improve
outdated technologies or practices.

Challenges: Visionary leaders may miss important details or other opportunities, like recognizing their teams,
because they’re so focused on the big picture.

Comparison between Business and Political Leaders

Roles and Goals:
Business Leaders: Business leaders primarily focus on managing and growing their companies or
organizations. Their main goal is to ensure the success and profitability of their businesses, which often
involves maximizing revenue, minimizing costs, and expanding market share.
Political Leaders: Political leaders, on the other hand, are responsible for governing and representing a
community, region, or country. Their primary goal is to address public concerns, make policies, and provide
governance that benefits society.
Scope of Influence:
Business Leaders: Business leaders have a more limited sphere of influence, primarily affecting their company,
its employees, customers, and shareholders.
Political Leaders: Political leaders have a broader scope of influence as they make decisions that impact an
entire community, region, or country, including areas like lawmaking, public services, and international
relations.
Decision-Making Factors:
Business Leaders: Business decisions are often driven by market forces, competition, and financial
considerations. The focus is on achieving profitability and sustainable growth.
Political Leaders: Political decisions are influenced by a wide range of factors, including public opinion, social
values, economic conditions, national security, international relations, and the well-being of citizens.
Accountability:
Business Leaders: Business leaders are accountable to their company's stakeholders, including shareholders,
employees, and customers. Their success is often measured by financial performance and business growth.
Political Leaders: Political leaders are accountable to the electorate and citizens. They are judged based on
their ability to address societal issues, promote the common good, and uphold democratic values.
Leadership Styles:
Business Leaders: Business leaders often exhibit more directive leadership styles, making decisions to achieve
business goals efficiently. They might emphasize strategies like innovation, competition, and profit
optimization.
Political Leaders: Political leaders often need to balance various interests and viewpoints. They may employ
more collaborative and consensus-building leadership styles to address diverse societal needs.
Regulation and Oversight:
Business Leaders: Business activities are subject to various regulations and oversight, aimed at ensuring fair
competition, consumer protection, and ethical behaviour in the marketplace.
Political Leaders: Political leaders are responsible for creating and enforcing regulations and laws that govern
the functioning of society, including areas like public safety, healthcare, education, and environmental
protection.
Transitions and Succession:
Business Leaders: Succession planning in business involves selecting and grooming individuals to take over
leadership roles when current leaders step down or retire.
Political Leaders: Leadership transitions in politics often involve elections, appointments, or term limits as
defined by the political system in place.
Comparison between Business and Social Leaders
Focus and Goals:
Business Leaders: Business leaders primarily focus on achieving financial success, growth, and profitability
for their companies. Their primary goal is to maximize shareholder value, increase market share, and ensure
the sustainability of their business operations.
Social Leaders: Social leaders are more concerned with addressing societal issues, advocating for positive
change, and improving the well-being of communities and individuals. Their goals often center around equity,
justice, human rights, and social impact.
Impact Area:
Business Leaders: The impact of business leaders is largely within the realm of their companies and industries.
They create products, services, and jobs, contributing to economic growth and development.
Social Leaders: Social leaders work to effect change on a broader scale. They address issues such as poverty,
education, healthcare, inequality, environmental sustainability, and more.
Stakeholders:
Business Leaders: Business leaders primarily serve the interests of their shareholders, employees, customers,
and investors. Their decisions often prioritize financial success and the sustainability of the business.
Social Leaders: Social leaders advocate for the rights and well-being of marginalized and vulnerable
populations. They consider the needs of a wide range of stakeholders, including those who may not have a
direct financial interest in their
work.
Metrics of Success:
Business Leaders: Business success is often measured through financial metrics such as revenue, profit
margins, and market share.
Social Leaders: Success for social leaders is measured by the positive impact they create, such as
improvements in social conditions, reduced inequality, increased access to resources, and enhanced quality of
life.
Approach to Leadership:
Business Leaders: Business leaders often employ strategic and results-oriented leadership styles to drive
innovation, manage resources, and achieve business objectives.

Social Leaders: Social leaders frequently use empathetic, collaborative, and advocacy-driven leadership styles
to promote social justice, raise awareness, and mobilize communities for change.
Responsibility and Accountability:
Business Leaders: Business leaders are accountable to their shareholders and the economic performance of
their organizations.
Social Leaders: Social leaders are accountable to the communities they serve, as well as the principles and
causes they champion.

Decision-Making Factors:
Business Leaders: Business decisions are influenced by market dynamics, competition, and profit
considerations.
Social Leaders: Social leaders base their decisions on ethical considerations, social impact assessments, and
the well-being of the affected communities.
Long-Term vs. Immediate Impact:
Business Leaders: Business leaders often focus on achieving short- and long-term financial goals, which can
result in more immediate impacts on the economy and employment.
Social Leaders: Social leaders may work towards long-term structural changes that lead to lasting
improvements in society, even if the immediate impact may be less visible.

Sustainable Leadership Principles

Sustainable leaders strive to drive a positive change by building sustainable enterprises that reduce the impact
of operations on the natural environment. To achieve this objective, they should work toward implementing
the following five principles of sustainability leadership:
1. Having an Eco centric, Systemic, and Long-Term Mindset
An ecoentric (or ecological) mindset underlines the fact that humans are a component of the global ecosystem
and not separate from it. Top leaders should inspire emerging professionals to incorporate this insight into
their worldview to reduce the negative impact that people have on the environment.
2. Establishing a Cross-Boundary Leadership Network
Sustainability leaders establish a cross-boundary leadership network by collaborating with leaders in different
roles. Project executives, thought leaders, subject-matter experts, and trusted advisers may all be part of this
leadership group. By coordinating action points, strengthening connections, and transforming key strategies
into actions that appeal to various stakeholder groups, sustainable leaders create a shared vision for achieving
change.
3. Exercising Influence Without Authority
The key to sustainable leadership is influence, not authority. Sustainability leaders need to exercise their
influence across the world to vast, diverse groups of people, among whom they might not have any authority.
Therefore, leaders must develop credible power by strategically engaging in social networking to build a
relationship with employees and exercise influence without having any formal authority.
4. Working with Complexity
There is rarely a defined consensus on how to address organizational challenges. Hence, a core skill for leaders
includes distinguishing between various leadership types and selecting the appropriate leadership style to
resolve problems, depending on the nature of the challenge. Thus, sustainability leaders must be comfortable
working with various complexities that involve factors such as stakeholder needs, politics, competing interests,
and natural systems.
5. Recognizing the Importance of Leading Oneself
Prioritizing self-leadership by increasing self-awareness of sustainable values and purpose is a fundamental
component of sustainable leadership development. Sustainability leaders who understand the importance of
first leading themselves have a clear sense of the purpose and values and are strongly driven to encourage
others to discover theirs.

What are the Characteristics of Sustainable Leadership?

It is important to understand the key characteristics of sustainable leaders as distinct from other more
established leadership styles. To make the difference clear, we have broken down the following characteristics
into five main areas:
1. Sustainability Mindset
This implies a strong sense of purpose paired with a long-term orientation and an inherent ambition to achieve
the sustainability bottom line.
2. Systems Thinking
Systems thinking involves the intellectual ability to observe and focus on the bigger environmental issue. It
also requires changing the perspective between conflicting groups by developing a strategy that inspires all
stakeholders.
3. Relationship Building
Sustainable leaders should understand people across different cultures, supporting diversity, and building
productive, long-lasting relationships with stakeholders.
4. Continuity of Commitment
This means understanding that most complex challenges require long-term, adaptive management and being
committed to foster change.
5. Effective Communication
Sustainable leadership requires advanced skills in active listening, storytelling, creating a shared vision,
conflict management, and the capacity to motivate and convince other people.
Role of Business Leaders in sustainable development
Setting Vision and Strategy: Business leaders can define a clear vision and strategy that aligns with
sustainable development goals. They can prioritize long-term value creation over short-term profits and embed
sustainability into the core of their business operations.
Innovation and R&D: Leaders can drive innovation by investing in research and development of sustainable
technologies, products, and services. This can lead to more resource-efficient processes, reduced
environmental impact, and the development of solutions that address social challenges.
Stakeholder Engagement: Engaging with stakeholders, including employees, customers, investors,
communities, and regulators, is crucial. Business leaders can ensure that the interests and concerns of these
groups are considered in decision-making processes.
Supply Chain Management: Business leaders can influence their supply chains by promoting responsible
sourcing, ethical labour practices, and environmental protection. This includes assessing the environmental
and social impacts of suppliers and encouraging them to adopt sustainable practices.
Transparency and Reporting: Transparent reporting on environmental, social, and governance (ESG)
performance allows stakeholders to evaluate a company's progress towards sustainability goals. Business
leaders can promote transparency to build trust and accountability.
Resource Efficiency: Business leaders can implement measures to reduce waste, energy consumption, and
emissions in their operations. This can lead to cost savings, improved efficiency, and a lower environmental
footprint.
Community Engagement: Engaging with local communities and addressing their needs can create positive
social impacts. Business leaders can invest in community development projects, support education, and
contribute to local infrastructure.
Diversity and Inclusion: Promoting diversity and inclusion within the organization fosters creativity and
innovation. Business leaders can create an inclusive workplace that values different perspectives and
backgrounds.
Risk Management: Anticipating and addressing potential environmental, social, and regulatory risks is
essential for long-term business sustainability. Leaders can develop strategies to mitigate these risks and seize
opportunities arising from changing market dynamics.
Advocacy and Collaboration: Business leaders can influence policy decisions by advocating for sustainable
practices and policies. Collaborating with other businesses, NGOs, governments, and international
organizations can amplify their impact on global sustainability challenges.
Investment Decisions: Business leaders can attract socially responsible investors by demonstrating their
commitment to sustainability. Aligning business strategies with sustainable development goals can enhance
the company's reputation and attractiveness to investors.
Education and Awareness: Business leaders can raise awareness about sustainable practices among
employees, customers, and the general public. Education can lead to behavior changes that contribute to a
more sustainable society.