Styles of Leadership

Not all leaders are the same. Each leader has a specific style that affects how they run their company and interact with their employees and almost all facets of the business. While each leader has their own unique style of leadership, leadership styles usually fall into ten general styles. Understanding a leader's style helps ensure that a leader is the most effective they can be. 

Autocratic Leadership

In autocratic leadership, a leader believes that everything should go his way. The thoughts and opinions of employees are not taken into account. This leadership style is not sustainable and should only be used in very few situations where only the leader has all the information required to make a decision.

Bureaucratic Leadership

In bureaucratic leadership, a leader is all about the rules. They may listen to employees only when their ideas and opinions align with current company policy. This leadership style works for larger and older companies where the company is in a good position and not looking to move. These types of leaders, though, must be careful about becoming too stuck in the status quo when change is necessary.

Charismatic Leadership

In charismatic leadership, as the name suggests, leaders have a lot of charisma. They often are persuasive and have strong communication skills. Charismatic leaders must be careful that the focus stays on the company rather than the leader. If a charismatic leader does not use their charisma well, there is the potential for just creating "yes-men."

Coaching Leadership

In coaching leadership, the leader focuses on helping employees reach their full potential. This type of leader works hard to give guidance to employees. While a great form of leadership, coaching leadership only works in some settings. It can take time to develop relationships with employees to use such a leadership style, and it does not necessarily work with all employees. In general, this form of leadership works best in settings where the leader works one-on-one with the employee.

Democratic Leadership

In democratic leadership, the leaders ensure that employees have a say in the process. This leadership style can effectively give employees a feeling of being respected and heard. The leadership style is considered one of the most effective since it helps get everyone involved and encourages sharing ideas and innovation. While in almost all cases, democratic leadership is a good style to use, it can take considerable time and resources, so there may be times when a leader will have to decide for themselves.

Laissez-Faire Leadership

In laissez-faire leadership, leaders give a lot of autonomy to employees. This style can be thought of as the opposite of micromanaging. Employees are, for the most part, left alone. A benefit of this style is that it can empower some employees. On the other hand, this leadership style can inhibit employee development and not work in circumstances where a leader's involvement is essential.

Pacesetting Leadership

In pacesetting leadership, leaders are focused on performance. These types of leaders hold up high standards for their employees and push their employees to reach goals by setting a high pace for their employees. This style works well in fast-paced and high-energy environments where meeting goals fast is the objective. Pacesetting leadership can lead to stressed-out or burned-out employees due to the pressure to complete everything quickly.

Transformational Leadership

In transformation leadership, as the name suggests, a leader wants to transform his employees and inspire them. The leader is often focused on the company's vision, which is why this type of leadership is sometimes called visionary leadership. Overall, this form of leadership is all about the company's future. This style works well for growth-oriented companies where growth requires some transformation. A con of this leadership form is that the details can sometimes become lost in the big-picture focus.

Transactional Leadership

In transactional leadership, leaders use reward and punishment to motivate employees. Leaders make clear what will occur to employees if they meet their goals. This form of leadership is often used in sales, where employees are trying to make a certain quota and receive bonuses when they exceed their quotas. However, this form of leadership only works with some employees as it can feel diminishing to many. Also, these leaders must be careful that the rewards align with the company's goals and values.

Situational Leadership

In situational leadership, a leader chooses the style of leadership based on the situation. This form of leadership is flexible and adaptable. Leaders who use this style excel at recognizing the needs of their employees and their companies and using those needs to direct their strategy. Not all leaders have strong enough skills to use this form of leadership, but ultimately it is the best strategy.