There are quite a few types of leadership in business, but some of the most commonly acknowledged leadership styles are:
- autocratic (or authoritarian)
- democratic (or participative)
- laissez-faire (or delegative)
- transformational.
As you explore these leadership styles, it’s worth considering these questions: What exactly defines a great leader? Is a great leader someone who drives other people hard in order to achieve exceptional productivity? Is a great leader someone who brings out the best in other people, motivating them to do their best work every day?
Or is a great leader someone who can adapt their language use and leadership style to meet the needs of whichever employee or manager they are interacting with at any given time? The answers to these questions are certainly debatable. Spend some time reflecting on them as you consider the following leadership styles.
Autocratic Leadership Style
An autocratic or authoritarian leadership style consolidates power and decision making at the top. The senior-most leader establishes mandates for what needs to be done and how it should be done. They control and command the organization’s policies, procedures, direction and strategies, making all major decisions with little to no input from others.
Democratic Leadership Style
A democratic or participative leadership style is widely thought to be the most effective one. This leadership style encourages collaboration and feedback, with the acknowledgement that the evaluation of multiple perspectives and suggestions can lead to effective decision making and creative innovation.
During group discussions, the democratic leader will offer guidance, but will also solicit the opinions and suggestions of others. Democratic leaders help others feel that their role in the organization has value and meaning, which can encourage loyalty and commitment to the mission. However, the democratic leader still has the final say in the ultimate decision.
Laissez-Faire Leadership Style
The laissez-faire leadership style is diametrically opposite to micromanagement. It’s a hands-off approach that empowers each employee to take ownership of their role, and to figure out what needs to be done and how to do it most effectively. Laissez-faire leadership in business consolidates authority and decision making in others, rather than the top-most leader.
The laissez-faire style can be beneficial when the group is comprised of highly qualified and intrinsically motivated experts who are already deeply committed to the mission. However, elsewhere, it tends to result in a loss of productivity and motivation.
Transformational Leadership Style
Like the democratic leadership style, the transformational style is considered to be highly effective. Like the laissez-faire style, it encourages employees to exercise their own autonomy. Unlike the laissez-faire style; however, transformational leadership also engenders accountability and individual ownership.
The transformational leader establishes a central mission and vision for the organization, and inspires others to wholeheartedly commit to the cause. In part, the transformational leader motivates others by setting a strong, positive example, developing a highly supportive company culture and encouraging employees to take ownership in their work and to see their roles as meaningful. Companies led by transformational leaders tend to embrace innovation and change, proactively get in front of industry trends and inspire creative thinking.
