Business Studies – 2.2.3 Leadership styles | e-Consult

Recommended Leadership Style: Transformational Leadership

Justification: Transformational leadership is the most suitable style to address the low morale and high turnover in this scenario.

• Inspires and Motivates: Transformational leaders inspire their team to achieve extraordinary results by creating a shared vision and challenging them to exceed expectations. This can address the feeling of being undervalued.
• Builds Trust and Respect: Transformational leaders build strong relationships with their team members based on trust and respect. This can improve morale and reduce turnover. Regular one-on-one meetings to understand individual concerns are crucial.
• Provides Opportunities for Growth: Transformational leaders invest in the development of their team members, providing opportunities for training, skill enhancement, and career progression. This can increase job satisfaction and reduce turnover.
• Creates a Positive Work Environment: Transformational leaders foster a positive and supportive work environment where employees feel valued and appreciated. Recognizing and rewarding good performance is essential.
• Focuses on the Bigger Picture: Transformational leaders communicate the company's vision and how each employee contributes to its success. This gives employees a sense of purpose and meaning in their work.

Autocratic leadership would likely worsen the situation by further demotivating employees. Laissez-faire leadership would exacerbate the existing problems by lacking direction and support. Transformational leadership, by focusing on employee well-being and development, is the most effective approach to improve morale and reduce staff turnover.