As with many other things, there is no one-size-fits-all leadership style. Leaders of different industries require different traits that are relevant to their job. Having an understanding of multiple types of leadership styles helps executives and managers adapt themselves to important leadership traits and also hire managers who reflect such characteristics.
Following is the list of different types of leadership styles with their advantages and disadvantages:
Transactional leadership
Transactional leadership believes in group organisation. Leaders with this style build a clear chain of command and implement a strict approach to performing management activities. Leaders offer an exchange in transactional leadership; they reward good performances while punishing bad ones. With this approach, employees are doubtful to reach their full creative potential.
Laissez-faire leadership
The French phrase, Laissez-faire means ‘let them do’, typically translated to ‘let it be’. The hands-off approach characterises leaders of this style. Useful for creative jobs, this style requires leaders to monitor performance and communicate expectations to maintain the quality of work
Democratic leadership
As the name suggests, in the democratic leadership style, leaders ask for inputs from the team before making a final decision. Workers report higher levels of job satisfaction and the company benefits from better creativity. Nevertheless, it follows a slow process and may not be useful in workplaces where quick decision-making is required.
Situational leadership
In situational leadership, the best leaders use a range of different styles depending on the environment. Factors like worker seniority, the business process performed and the complexity of tasks play an essential role in this style. On the downside, many individuals have a natural type of leadership style, making switching between functions as in this style, a challenging task.
Servant leadership
Leaders who practice servant leadership favour power-sharing model of authority. The leaders encourage collective decision-making and prioritise needs of their team. This leadership style can boost morale and improve diversity. However, the technique lacks power and has a conflict of interest as such leaders put employees before the business objectives.
Autocratic leadership
Autocratic leaders have tremendous control over their staff, and they do not share power. The style is not appreciated by staff. There is also a lack of creativity due to the authority of a single individual. It is best suited to institutions where jobs are routine and require limited skills.
Transformational leadership
Managers with transformational leadership style create an environment of intellectual stimulation and inspire their employees through effective communication. Though, individuals showing this style are often heavy thinkers and require a more detail-oriented system to produce results.