The Difference Between Startup and Corporate Leadership Styles

, The Difference Between Startup and Corporate Leadership Styles

The industrial revolution 4.0 has made startup companies in Indonesia increasingly mushrooming. Now, many fresh graduates and those with work experience choose to work at startups. However, that does not mean that the interest of job seekers to work in corporations has decreased.

Startups and corporations are very different in terms of work culture. So, what are the differences in leadership styles between startups and corporations? Here is the full review.

The difference between startups and corporations
The most basic difference between startups and corporations lies in their size. Corporations are mature and long standing companies, employing hundreds to thousands of employees. Due to the large number of existing divisions and employees, it is not surprising that a corporation has more levels of work positions that are directly responsible for each division of the company.

Meanwhile, a startup is a company that has just been started. In general, startups respond to market needs by combining business views with advances in digital technology. Even though it is relatively new in the business world, startup progress should not be underestimated. Currently, there are many startups that have reached the unicorn level and achieved great success.

The work culture in startups tends to be more flexible than in corporations. This can be easily seen from the work attributes of the employees. People who work at startups are allowed to wear casual clothes, while corporate employees are required to dress neatly and formally. Broadly speaking, startups are filled with workers from the younger generation, so this is reflected in their work culture and leadership style.

Interaction and communication
Talking about leadership style, interaction and communication really differentiate startups from corporations. The leadership style in corporations tends to be more authoritative, where the authority held by superiors is very clear.

One employee will have many superiors, ranging from supervisors, managers, department heads, to company directors. Therefore, an affiliated leadership style is also needed, which means prioritizing team building and a cooperative environment to strengthen relations between divisions.

A charismatic and transformative leadership style will be better suited to a startup work environment. In contrast to corporations which do not allow employees to have direct discussions with directors or founders, startups instead encourage their employees to brainstorm with director-level superiors.

This leadership style evokes emotional connection between employees and colleagues and the company. Communication has also become more open, in keeping with the fast-paced startup work culture.

How to express an opinion
Corporations prioritize a democratic leadership style, namely gathering consensus before finally making a decision. When you are working on a project, you will be involved in various meetings that invite people from different divisions and positions. Starting with an internal team meeting, then continuing with a meeting with the head of the department, then the results of the meeting must be approved again by the director.

Everything must be done systematically to prevent errors from occurring. This leadership style will seem long-winded if implemented in a startup, but it is quite effective for corporations that hold various product or service lines.

In a startup, you have the same rights as managers to voice your opinion, as long as you have good skills and are able to take responsibility for it.

Collaborative and hierarchical work style
Both startups and corporations focus on a collaborative working style. However, the corporation has divided the duties and responsibilities of each employee in detail. This hierarchical nature creates a more stable work environment, provides optimal work results, and produces work routines.

For example, the digital marketing division in a corporation will take care of the company’s website and social media activities on a regular basis, without needing to be asked again. If a new product is to be launched, the digital marketing division will work closely with related divisions to design a massive marketing campaign, of course, also involving the Director as a form of approval.

Slightly different, startups also carry the same work style without hierarchical frills. You must be prepared to be asked to do work that is not really the responsibility of your position.

Leave a Reply

Your email address will not be published. Required fields are marked *