What Factors Influence Leadership Styles?

Roshni Khatri

2nd May'23
What Factors Influence Leadership Styles? | OpenGrowth

Leadership is inspiring, motivating, and guiding people to complete a goal. A great leader establishes a strategy, gathers resources, and ensures that everyone knows what is happening. As soon as the team members are aligned and oriented, they relinquish control of the situation. 

Building relationships is a key component of leadership. It's more of a human endeavour; it's not always about a product, technological advancement, or getting things done. Leaders should understand the four fundamental components of leadership: direction, leader, circumstances, and communication. Leaders have the power to sway and direct those who report to them, enhancing the organization's effectiveness in attaining its objectives. 

External factors that influence leadership styles include the organizational environment, staff demographics, staff traits, resources, economic and political considerations, technology, and organizational culture. We will discuss the leadership styles here.


Factors influencing leadership styles

The ability of the leader to interact with followers and inspire them to do the required duties while utilizing the leadership style most suited to the circumstances at hand determines the leader's success. A leader must consider the dynamics and interdependencies of these four leadership characteristics to succeed. The type of circumstance has a significant influence on leadership style choice, in addition to the leader’s and subordinates' characteristics. Sometimes, a certain leadership style is adopted due to social, economic, and political forces. Besides this, you should also know about the things the smartest leaders do to motivate their employees as it can influence your workforce positively. 

An enterprise's success in its small company is aided by an effective leadership style. The sort of management that works best for you and your business depends on a variety of factors. When analyzing alternative leadership styles, evaluate key elements such as your own intrinsic inclinations and your team's demands. So here we will study what influences leadership choices. Have a look at:

Factors influencing leadership

Institutional setting

Organizations have unique work environments with unique values that are the result of both previous and current leadership. These principles define how the company will run its operations and reflect its concern for its stakeholders, clients, employees, and the community. The organization's personality consists of its goals, values, and ideals that characterize its goods and services. 

The role of employees

An employee's position inside an organization is established by the duties and obligations he must perform in collaboration with others. There are different levels of maturity among employees, which affect the kind of leadership required to guide them through work and interpersonal connections. Employees' work ethics and personal beliefs impact the organization. Leaders must be aware of these traps and obstacles in their roles so that workers can complete their jobs. 


Company culture

Company culture is the result of its founders, former and present administrators, past events, and problems. Because it is the product of ingrained knowledge and formal procedures, as well as the traditions, rituals, and laws that reflect the organization's self-image and common expectations, culture is difficult to alter. Customs practices and standard methods of doing things influence organizational standards, which affect how employees maintain good standing and behave correctly in different situations.


The corporate environment may quickly and significantly alter because of technology. To help organizations embrace technology, leaders must modify their management approaches. Research and development facilitate the development of novel, fresh methods that streamline operations. 


Staff Personality traits and managerial responses

Different people react differently to different leadership philosophies. A leader who is forceful or sets the pace may overwhelm shy people. This individual can apprehensively worry that his career is in danger or believe that he will never be as good as the pacesetter. To understand how executives and staff members interact, business leaders use personality tests. Managers can then learn topics like how to encourage a competitive worker to achieve their highest accomplishment in peer comparisons. 

Workplace diversity

Small businesses are hiring more diverse workers than in the past. An organization may hire personnel from various racial, gender, age, and cultural backgrounds. To address this diversity, leaders must create a vision for their team and adopt a multicultural mindset in their daily work. 

A participative management approach, in which the boss closely collaborates with the workforce to foster assimilation and success, is one of the management philosophies that works well with a diverse group of employees. Servant leadership is a successful approach that works for people from all walks of life. In this approach, the manager puts all of their efforts into giving employees everything they require. This is so that, in theory, as they develop, they will spread the servant mentality to other employees and clients. 

workplace diversity

Trust mechanism

Managers' leadership style is largely influenced by professional ethics. For instance, a person who strongly favours cooperation as the most effective method of working chooses a democratic leadership style. With this management approach, the manager must collaborate with the team to find solutions to issues. Transformational leaders may also be other individuals who want to emphasize to their team members how significant it is for them to master self-management. 


Determine what adjustments employees need to make, show them how to make them, and convince their followers to get behind the transformation of both the organization as a whole and themselves as employees. They are all part of this sort of management. Furthermore, you need to know what essential skills you need to succeed

To conclude, we can say that the business culture and the extent to which a leader may influence an employee to produce outcomes are both influenced by a leader's leadership style. Although most company executives have one dominant leadership style, there are some circumstances and variables when switching styles might enhance outcomes. Learn how your primary style is received by the workforce, and be prepared to adjust as necessary.

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A keen observer, who loves to spend time with nature. A fun loving person, enjoys to explore the new aspects of life. Passionate about reading and learning new things. Roshni is dedicated towards her work and has worked in different professions.