Majority Indian biz leaders follow 'coercive' leadership style

The conclusions are based on a survey of about 2,500 leaders spread across 80 companies in India.

Updated: Apr 04, 2013, 21:00 PM IST

New Delhi: Majority of the corporate leaders in India are pursuing "coercive" leadership style which is demotivating for employees besides impacting overall organisational performance, says a Hay Group survey.

Globally also, leading management consultancy Hay Group said that business leaders are over-reliant on a single leadership style, resulting in demotivaton of employees and holding back organisational performance.

"The research also showed that 2 in every 3 Indian leaders (62 percent) opt for the 'coercive' leadership style, compared to just 37 percent globally," Hay Group said in a report released Thursday.

The conclusions are based on a survey of about 2,500 leaders spread across 80 companies in India.

"Compared to the global average of 55, leaders in India are far from the ideal workplace environment, with 70 percent of leaders found creating a demotivating climate for their employees.

"Both Brazil and China were found to have performed better in this aspect," the report said.

Hay Group covered 95,000 leaders in more than 2,200 organisations worldwide.

"The leadership style in place directly affects the way people feel about working for an organisation ?- by creating what we call a 'climate'.

"So the more leaders can improve the climate they create, the higher the performance of their team will be," Hay Group India's Leadership and Talent Practice Leader Mohinish Sinha said.

According to Hay Group, while good leadership is synonymous with flexibly tailoring the approach to suit the situation, about 36 percent of leaders have mastered none or only one leadership style.

"As a result, working environments across the world are suffering, with over half (55 percent) of leaders creating demotivating climates," it said.

On the other hand, just about 19 percent of leaders are fostering high-performance workplaces.

"Two thirds (66 percent) of Asian leaders create demotivating climates -? the worst of any global region ?- where just one quarter (24 percent) have mastered four or more leadership styles.

"Majority of Asian leaders (48 percent) have been found to be using the 'coercive' style of leadership," it noted.