CEO Leadership Style
In any organization the CEO is expected to lead from the front. He is the most responsible authority for the overall performance of the organization. As a leader he needs to instill the same values in his immediate managers. The CEO is the daily driver and founder of the organization’s corporate culture. However organizations today expect the CEO to follow a particular leadership style as per the culture and requirements. Here we have a look at the different CEO leadership styles and what does each style encompass.
Transformational
A transformational CEO is a leader who believes in continuously inspiring his team to change and improve. He is the aggressive type of CEOs who has a long vision and he will stop at nothing to get there. The CEO is always ready for any change that can do good for the organization. A good example is the Virgin Atlantic CEO, Sir Richard Branson, whose innovative leadership style inspired the people within his organization to grow and innovate. The other good example of a transformational CEO is Sam Waltom from Walmart. Today Walmart is the largest retail chain in the world and it is growing from strength to strength.
Participative
In this case the CEO believes in total team work and hence he also involves his team members in the decision making process. Hence he ensures that all members participate in the discussion before he makes the final decision. This style of CEO leadership concentrates on making decisions in a joint fashion. Here the best examples would be of Facebook and Google. For several years since their inception, these companies have formed a management group comprising of 3 or 4 individuals who equally share the decision making responsibility.
Situational
Most of the CEOs have adopted the situational leadership style. In this case the CEO adapts to the changing situation and then makes decisions accordingly. The CEO is expected to continually adjust to the new situation and constraints. This type of leadership has a lasting effect on the other managers.
Service-Oriented
Here the CEO gives utmost priority to the needs and aspirations of his subordinates. The CEO involves his team in most of the decision making processes and the CEO relies strongly on their ideals and values. This style is approached by many CEOs today as they feel the human resources are the most important component of any organization.
Charismatic
As the name suggests, a charismatic CEO relies on his personal charm to lead his team. By adopting this approach the CEO creates a feeling within the organization that the results of the organization are directly proportional to the presence of a charismatic leader in the organization. However this type of leadership can be a double edged sword as everyone has to be highly dependent on the CEO.
In this case the CEO shows his charisma by instilling his own rituals and polities that are related to his personal beliefs. The drawback of the charismatic style is that this policy can lead to the company becoming rigid.