Alan Sugar’s famous style of leadership is in the firing line of recent research which claims the economic downturn has had a dramatic effect on how bosses manage their staff.

The research found that people respond far better to a more ‘touchy-feely’, empathetic manager at the helm of their company rather than an intimidating, authoritarian figure barking orders left, right and centre. Shaf Rasul, from Dragon’s Den Online – one of Scotland’s richest entrepreneurs – explains how managers can and have changed their styles to meet the needs of the recession and how bonding with their teams has made them more effective leaders in our podcast below:

The research discovered that over half of the leaders questioned said they have actively changed their leadership stance in order to be seen as part of the team. Over one third revealed they now take a more active interest in the welfare of their workforce, while nearly a quarter of bosses say they are actively making more of an effort to bond with their staff. From the employee point of view, just under half of employees reported they value emotional intelligence more than mental aptitude or physical appearance.

Bosses are also keen to be seen as doing the right thing financially, with four in ten revealing they have recently turned down a bonus in an attempt to be seen as more financially prudent – and with 40% of employees say this has positively influenced the way they see their boss, it seems to be working.

The research was conducted by Orange and Exeter University’s Centre for Leadership Studies to find the most defining qualities of the model British boss since a tough economic climate, ahead of the 2010 Orange Leader of the Year Award at the prestigious National Business Awards.