6 Leadership Styles for Online Businesses

by | Jan 9, 2023 | Blog

An effective business is led. A leader who understands their personal leadership style and how to use elements of other styles to supplement their skills can change the trajectory of a business. Leaders or managers should be able to motivate employees and drive innovation.

There are six main leadership styles that managers use to handle teams. When used in combination, any well-respected leader can motivate teams and organize projects.

Online businesses operate in different environments. Managers of eBusinesses must learn how to control projects, meet deadlines and motivate teams from behind a screen. Managers might not meet with team members face-to-face on a regular basis, and in some cases, never. So how do eBusiness managers motivate teams and drive innovation? Let’s take a closer look.

The eBusiness Manager

Engaging teams and solving problems is the job of a leader. Managers are expected to assign the everyday tasks and responsibilities of an organization and ensure that employees complete these tasks. They are also responsible for motivating teams, predicting outcomes, and ensuring that projects are completed by the deadline. A good leader is task-oriented and people-focused.

The challenge for team leaders and project managers doing their job entirely online comes down to communication. Tasks need to be clear and communication channels established. Teams need to understand how and when they should communicate online and which networks provide the security required to protect organizations.

Effective leaders have the ability to innovate and communicate their vision clearly. The list of innovative business leaders to admire shifts and changes with the direction of political flavor. It can be difficult to separate the leader from the organization. This layer of branding can elevate a publicly traded company and attract investment and interest. Highly effective leaders like Elon Musk, Mary Barra, Warren Buffet, and Ursula Burns use their public persona as part of their marketing. They are public figures who have proven they can motivate innovation through creative and skillful communication of their ideas that are then translated into action by teams. They connect with people’s desires, imagination, and even greed to grow businesses. These and other successful leaders use leadership styles that can be described in the following ways.

6 Leadership Styles in Business

Every professional in a leadership or managerial role has either learned or honed the skills that elevate them to executive roles. Modern approaches to leadership can be categorized into six leadership styles as follows.

Pacesetting: These are managers who are subject-matter experts in their field. This style is leadership by example and is common among those in tech development. This leadership style encourages employees to emulate their high-achieving managers and elevate their performance standards. This is leadership by example, and it is a motivational and inspirational leadership style that works best for professional teams who are skilled, need little direction or supervision, and look to their leader as a project manager who has the final say in all matters.

Coaching: Managers who use this style are focused on training and mentoring their employees. They pinpoint the strengths of each employee and foster their professional development based on their skills and interests. This management style is attributed to empathetic managers who recognize the talents and needs of their team members.

Affiliative: Managers who are interested in ensuring their employees feel like a cohesive unit are showing an affiliative style. These managers attempt to bond with each of their employees on an emotional level. They aim to create connections between employees so that colleagues are inspired to perform well.

Directive: Managers who emphasize the importance of the business hierarchy, where managers are the authoritative figures and make all the decisions, are directive leaders. Managers are responsible for delegating tasks and enforcing business regulations and employee responsibilities. This style is best in areas that require strict following of processes, such as making food at a fast-food restaurant.

Participative: This leadership style, also known as collaborative, highlights the importance of every voice in the company. This style gives employees agency. Managers listen to feedback from employees at all levels, which encourages employees to talk about improvements, new ideas, or even new directions for the business. The style works best for small operations with skilled professionals or experienced team members.

Authoritative: Managers who use an authoritative leadership style are in charge of executing the organization’s overall vision. This style relies on employees to be knowledgeable and self-motivated, with employees answering to the leader for final decisions.

Managerial Success

Successful managers know how to identify which of the six leadership styles they embody and how they can leverage their qualities to be aspirational leaders. Doing this online from a great distance can be a challenge, but leaders are often charismatic and this quality transfers through good communication and consistent leadership. When employees understand your overall style, they know what to expect and can perform to standard.

One of the most challenging aspects of hiring management talent is finding the right person. According to a recent poll, 82% of the time, the wrong person is hired for a managerial role. Successful managers’ top traits are honesty, a positive attitude, trustworthiness, supportiveness, and effective communication. So why are the wrong people elevated to management?

Managers need to inspire excellence in their employees. Employees who understand the expectations placed on them by their managers often attain better results. This requires exceptional communication skills, and it is this skill that is often missed when hiring leaders.