DEFINING concepts

Business leadership

Liderazgo empresarial

Business leadership encompasses a set of command skills possessed by an individual within a company to intervene in the way of being or doing in a work group and, thus, get the team to act with motivation towards the achievement of goals and objectives. Therefore, a leader is a person with the ability to influence others and whose opinion is valued very positively.

You must not forget that leadership is a subject that has been widely studied in the business world. In fact, numerous experts have pointed out over the years the essential qualities that a leader should have. Among these, we can highlight respect, influence, intuition, support, drive, connection, sacrifice and magnetism.

Types of business leadership

Not all companies are organized in the same way, so their management is not the same either. This is largely due to the type of production and the environment, which will influence the way the organization is managed. We explain below the most common types of business leadership today:

  • Transformational. The leader is able to change workers in a positive and valuable way. The objective is to motivate employees to meet established objectives in an efficient way.
  • Transactional. Exchange that takes place between leaders and their subordinates, i.e., each worker is compensated with rewards or incentives for the positive performance of his or her work.
  • Autocratic. Allows managers to make the most important decisions and control over the work performed. The boss has total authority and responsibility without subordinates participating in the decisions.
  • Laissez-faire. It consists of letting each worker accomplish his task, since he knows what he has to do without many instructions. This makes the person responsible for his position and the boss only intervenes if necessary.
  • Democratic . The employee is encouraged to participate in the opinions and strategies, although the leader makes the final decision. This leads to empowerment and motivation to carry out a task efficiently.
    How we can implement efficient and constructive leadership

It is essential that, as a leader, you value different premises to achieve the expected results. These are the following:

Setting goals and objectives to work together. You have to set the course to follow, the tasks to perform and divide the work of your team according to individual skills and characteristics.
Invest in people. Dedicating efforts in personnel (training, health, welfare, personal development, etc.) is a safe bet in the long term for companies and organizations.
Promote and hire talent. It is essential to have the best in their area at your side so that they can contribute ideas and solutions.
Communication is key to effective leadership. Learning to be a leader means communicating clearly what to do at all times. To do this, you must give precise orders and instructions so as not to create confusion or waste time.
Set an example. You must become a role model for the team. If as a manager you do not control yourself and do not apply your words, employees will stop following you and trusting you. In other words, you will lose the respect of others.

Example of business leaders

Numerous business leaders have successfully led their businesses and set a benchmark for future generations. We know it is impossible to mention them all, but here are some of the most outstanding ones:

Henry Ford was founder of the Ford Motor Company and creator of the chain production model. He carried out studies and advances on the subject of motivation and leadership of a company’s employees.
Fred Smith , founder of FedEx, encouraged democratic leadership.
Jack Welch , CEO of General Electric Co., increased the economic benefits of the company and was a promoter of transactional leadership.

In conclusion, business leadership must be based on motivation and on giving priority to its workers in order to achieve success. If you want to learn more about this fundamental aspect in any organization, bet on us. We will help you achieve all your business goals.