THE INFLUENCE OF MANAGEMENT STYLE ON THE EFFICIENCY OF HUMAN CAPITAL USE IN AN ENTERPRISE

Abstract

In the context of globalization, digital transformation, and increasing market volatility, modern organizations face an urgent need to optimize their management systems. This article examines leadership styles as key determinants of increasing the effectiveness of financial and economic decision-making and ensuring the sustainability of the business model. The study argues that adaptive leadership strategies that integrate traditional management approaches with leadership-oriented principles play a key role in stimulating organizational sustainability and innovation. The aim of the article is to study the role of the leader and the impact of leadership style on the effectiveness of the enterprise management system, identify the relationship between leadership styles and organizational performance, and develop practical recommendations for optimizing management approaches in modern conditions. The study offers a comprehensive classification of modern leadership styles - transformational, transactional, situational, service, charismatic, and digital - with a description of their key features, practical applications, advantages, and limitations. Depending on the specific situation, leaders can combine elements of different styles. The emphasis is on the importance of integrating several leadership models depending on the organizational context, the level of employee competence and the dynamic nature of the internal and external environment. The article also emphasizes the growing importance of digital leadership in implementing technological innovations and increasing strategic flexibility. Particular attention is paid to the role of the leader as a mentor and mediator, able to create an environment conducive to innovation, develop human capital and promote strong employee involvement. The effectiveness of enterprise management is largely determined by the chosen leadership style, which determines the nature of communications between the leader and subordinates, the decision-making model, and also shapes the overall corporate culture. The concept of leadership is viewed as a personalized form of corporate governance that combines financial incentives, ethical influence and social responsibility to increase productivity and competitiveness.