A leader is an individual responsible for guiding, motivating, and inspiring a team to work more effectively. To succeed as a leader, it is essential to adopt a leadership style that aligns with the team members, creating a strong foundation and making them feel comfortable.

According to Daniel Goleman, a renowned psychologist known for his work on emotional intelligence, “Being a great leader means recognizing that different situations may require different approaches.”

In this context, not all leaders can use the same approach. Leaders must adapt to the circumstances, situations, and the skills of their team members, and choose the leadership style that fits. Here are some of the leadership styles you should understand.

1. Autocratic Leadership Style

First, the autocratic leadership style is typically focused on results and efficiency. In this type of leadership, the leader holds the ultimate power, making rules, decisions, and procedures based on their own ideas or the opinions of a trusted few, while employees are expected to follow instructions without question.

This leadership style is well-suited for military commanders who need to discipline their troops. In business or other organizations, an autocratic style can be beneficial if the company has strict guidelines or requires high levels of compliance.

However, the downside of this style is that it can stifle creativity and make team members feel restricted, limiting their ability to express themselves. For example, a foreman overseeing a construction project may issue clear and strict instructions to each worker, ensuring the project runs smoothly and without any setbacks, as long as the team complies with these orders.

2. Democratic Leadership Style

Next is the democratic leadership style, which is the opposite of the autocratic style. In this style, the leader makes decisions based on input from the entire team. For them, decision-making that involves various perspectives often leads to better solutions.

Employees are encouraged to actively participate and freely express their opinions through open discussions, brainstorming, and collaboration with other team members.

This leadership style fosters an environment where every team member feels valued and responsible for managing their tasks, thereby increasing motivation and engagement within the team.

However, this style can be less efficient as it requires more time to organize discussions, gather ideas, and communicate final decisions. It may also put social pressure on members who are not comfortable sharing ideas in a group setting.

For example, in a startup company, the social media division opens a discussion with all employees about what content to create. The employees then engage in brainstorming and research on videos that are likely to go viral.

3. Visionary Leadership

Leaders who adopt this style tend to have a strong will and are often very determined. To drive progress, they create ideas that others may not have thought of, and they are willing to take high risks.

This style also encourages leaders to build strong connections, as they are open to feedback and take responsibility, which fosters trust between bosses, colleagues, and employees.

However, these leaders can sometimes be overly focused on their goals, which means they may need a companion to handle other issues the company faces.

An example of this is Elon Musk at SpaceX. He has a grand vision for the future, aiming to move humanity to another planet. He inspires his employees to achieve this nearly impossible goal while facing numerous challenges.

Discover more: 7 Steps to Implement Transformational Leadership

4. Transformational Leadership

Next is transformational leadership, which focuses on change within both the leader and their team. Leaders who adopt this style can even transform the vision and goals of the company as a whole.

This type of leadership encourages team members to exceed set targets and be adaptable to various situations and conditions that arise within the company.

However, sometimes this leadership style can cause the company to veer too far from its core objectives, leading both the leader and team members to overlook important details. Some members may also struggle to adapt and feel left behind.

An example of this is the owner of a café facing intense competition, who changes their business strategy by introducing a groundbreaking menu item—ice cream—which is not offered by competitors. This demonstrates that the owner is willing to change the company’s original goal of only selling coffee

5. Transactional Leadership

Leaders who adopt this style focus on performance and the work contracts agreed upon by employees. This leadership style typically involves rules for rewards and punishments, aiming to motivate employees to contribute and avoid neglecting their responsibilities. Essentially, this approach teaches the consequences of actions.

Leaders with this style also have high expectations and seek to achieve set targets. While this approach can provide a boost, the motivation tends to be short-lived due to an over-reliance on punishments or external incentives.

This focus on external rewards often leads to temporary motivation, with less attention given to team development and the personal growth of team members.

An example of this would be a manager setting a target for their team. If they meet the target, they are rewarded; if not, they face a penalty or a reduction in incentives.

These are the types of leadership styles that are essential to understand in leading a company. As a leader, recognizing various leadership styles is a crucial step in fostering effective leadership and enhancing success.

Arghajata Consulting is here to help you unlock your best leadership potential through professional training and consulting. With us, become an adaptive and visionary leader.