Small-business owners looking to improve their leadership ability will find many different leadership theories espoused by authors, psychologists, educators and businesspeople. However, many of these theories fall into the umbrella categories of task-oriented and relationship-oriented theories. While some businesspeople advocate that one of these theories is superior to the other, many argue that components of both are needed to be an effective leader.
Task-Oriented Leadership Theory
Task-oriented leadership theory describes a leader that is motivated by accomplishing tasks and concerned with the delineating roles and specific tasks for employees. The task-oriented leader creates policies and procedures, informs subordinates of these procedures and develops criteria for evaluating successful employee performance. Task-oriented leaders may organize their time around a schedule of events that must be completed for each day.
Relationship-Oriented Leadership Theory
Relationship-oriented leadership theory describes a leader who is primarily motivated by and concerned with her interactions with people. Relationship-oriented leaders often act as mentors to their subordinates. They schedule time to talk with employees and incorporate their feedback into decisions. They also often try to make the work experience enjoyable and attempt to foster a positive work environment or group dynamic.
Two studies in the "International Journal of Nursing Studies" in 2007 and 2009 found that leaders operating in a manner consistent with the relationship-oriented theory of leadership to be more effective than their task-oriented counterparts. However, the research also indicated that leaders who practiced elements of both theories were the most effective. According to the University of Central Michigan, "there is growing evidence that BOTH initiating structure and consideration are important for successfully leading teams."
Benefits of Combined Approach
A leadership style that incorporates elements from both theories can help leaders lead productive, efficient teams. By setting tasks for themselves and their employees, leaders can ensure the project stays on schedule and everyone is clear about their roles. By fostering relationships with their employees, on the other hand, leaders can motivate them and create a work environment in which all feel encouraged to contribute and ask questions.