Leadership Styles

Carlos Ghosn, the CEO and Chairman of Renault believe in the participative or democratic leadership style. Participative or democratic leadership is one of the most prominent leadership style used in many organizations. This is considered to be an effective leadership style, which positively influences the organizational culture and employee performance. In this type of leadership, it can be noted that the employees are asked about their opinion regarding the changes or in the business decisions and strategies (Kruse, 2014).

According to him a good organisational culture can be brought in only when the employees are given equal importance in the decision making and in conducting other business activities. In his style of leadership, Carlos asked for the opinions from the bottom level employees before any long term or short term business decisions. In this way, he believes the company can take reasonable decisions. However, some of the negative aspects of democratic leadership style is that in which the leaders to make the final decisions. Even when the employees are given their suggestions, the ultimate business decisions are taken by the top managers. Thus, it can be issues later when the actual implementation of action plan takes place. This can create issues and conflicts in the organisational culture. Carlos also noticed in their company that decision making process has been slowed down due to the vast number of options collected from all the bottom level employees (Giltinene, 2014). This type of decision making is thus not suitable when any immediate decisions are to be taken and activities to be implemented. It is also possible that the democratic style of leadership may not be able to make all the team members to equally contribute to the work as different people may have different level of adequacy to provide high quality output. Renault has thus found similar situations in their organisational culture to make a team perform effectively within a short span of time. Thus, it may create requirements to change certain decisions and activities. These issues can even require revision of decisions and strategies, which can further delay the outcomes and achievements of goals.

Unlike Carlos Ghosn, Bill Gates of Microsoft is a transactional leader, Transactional leadership is otherwise known as managerial leadership. The main focus of this type of leadership is to enable a transaction between the leaders and employees. This type of leadership style thus concentrates on the supervision of employees to enable them to contribute their work performance in an organized way to the organization (Mahdinezhad, 2016).

Bill Gates, the CEO of Microsoft company is a transactional leader who has inspired millions of people through the higher success and growth of the company across the globe. His focus was to create more inspiration among the employees and his followers; He is an ideal person whose dedication to his work has been a remarkable one and a positive motivation to all the workers which provides a long-term positive business vision. In his transactional style of leadership, he expects employees or subordinates to work in their most -efficient way. Transactional leaders like Bill Gates thus ensure a good supervision of the employee performance. In this way, the organizational culture is effective and with the coordinated and high-quality employee performances, organizational goals can be achieved effectively. In this organization, all the team members are appreciated for their work. Hence, it not only increases their moral and dedication to work, but also increase the overall organizational performance (Shah, 2017). As a result, it enables the company to succeed and increase its revenue in a long term. When different reward systems are provided to employees as external motivational factors, there are higher chances that employees will improve their work efficiency and contribute highly to the organization. However, one of the negative aspects of this transactional leadership is that punishments for lower work performances can demotivate highly to the employees. This can negatively influence the organizational culture. There can be thus higher attrition rate and affects the timely completion of tasks affecting the attainment of the organizational goals.

Compared to the other two leaders, John Chambers of Cisco Systems has adopted autocratic leadership. Autocratic leadership is based on the “My way or the high way” technique. In this style, the leaders are considered authoritative and they take business decisions with little or no inputs from their employees. For instance, John Chambers, the Chairman of Cisco Systems in the USA had his leadership in the company for 25 years. In autocratic leadership, leaders have the complete control over the company and all the decisions are made by the leader though many consider autocratic leaders as bullies and with no concern for the welfare or the opinions of the employees.  This will hamper the growth of the employees that in turn will affect their loyalty as they do not feel valued in the company (Sethuraman, 2016). However autocratic leadership is one of the most effective leadership’s styles that has quick decision making process and eliminates any ambiguity or inefficiency in the company. John Chambers is one of the successful autocratic leaders in the industry. As per Chambers one of the main drawbacks of CISCO was slow decision making that was affecting the performance of the company especially during changes in the market therefore he started taking decisions and implement in an effective manner that has reduced the delayed decision making process and also lead to effective decisions due to his vast experience in the arena. This has also helped him to achieve successful project deadlines.



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Ejere, E.I. and Ugochukwu, D.A., 2013. Impact of transactional and transformational leadership styles on organisational performance: Empirical evidence from Nigeria. The Journal of Commerce5(1), p.30.

Forbes (2018)

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Giltinane, C.L., 2013. Leadership styles and theories. Nursing Standard27(41).

Keskes, I., 2014. Relationship between leadership styles and dimensions of employee organizational commitment: A critical review and discussion of future directions. Intangible Capital10(1).

Kruse, K., 2013. What is leadership. Forbes Magazine3.

Mahdinezhad, M. and Suandi, B., 2013. Transformational, Transactional Leadership Styles and Job Performance of Academic Leaders. International Education Studies6(11), pp.29-34.

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