Leadership Styles: What Are They and How Do They Function?

Leaders ought not all to have the same personality or point of view. As suggested earlier, few leaders use the carrot approach and only a few use the stick approach. As a result, not all leaders get things done in the same way. Their fashion sense differs. The type of people with whom the leader communicates and works influences his or her leadership style. A perfect/standard leadership style aids a leader in getting the most out of those who follow him.

In the commercial world, we see five distinct leadership types. The following is a list of them:

1. Laissez-Faire leadership style (French phrase that means “let loose.”)

Employees are not directly supervised by a laissez-faire boss, and those under his supervision are not given daily updates. The laissez-faire leadership style is characterised by highly skilled and educated workers who need little supervision.

However, not all workers have these characteristics. This leadership style prevents workers who need supervision from producing. Managerial attempts at leadership and oversight are absent in the laissez-faire model, which can result in inadequate performance, a lack of control, and increased costs.

2. Autocratic leadership style

Managers with an autocratic leadership style will make decisions without consulting others. Managers have complete control over their staff and may enforce their will on them. No one condemns autocratic leaders’ decisions. Autocratic leadership is seen in countries such as Cuba and North Korea.

Many that need direct oversight benefit from this leadership style. Employees who engage in community functions who are creative despise this leadership style.

3. Participative leadership style

This is often referred to as democratic leadership. It acknowledges the opinions of team members and colleagues, but it is up to the participative leader to make the final decision. Employee morale is boosted by participative leadership because workers are involved in the decision-making process. It reflects a sense that their views are valued.

When a company has to make changes internally, the participative leadership model makes it easier for workers to consider changes by including them in the process. When businesses must make a decision in a limited period of time, this leadership style is tested.

4. Transactional leadership style

The idea of reward and punishment shapes the transactional leadership style. Transactional leaders agree that these two factors have a full impact on an employee’s success. When employees are encouraged, they put in their best effort, and the incentive is usually monetary. They are given a negative evaluation if they do not meet the set goal.

Transactional leaders pay more attention to their workers’ physical and security needs.

5. Transformational leadership style

In the returns that the company receives in the form of human capital gains, transformational leadership has the potential to influence employee expectations. By introducing knowledge management systems, promoting interpersonal contact among employees, and cultivating a healthy organisational culture, these leaders will reap greater rewards.

It promotes organisational creativity by fostering a collaborative environment or community. It fosters an atmosphere in which workers feel free to talk openly about their experiences and expertise.

Transformational leaders have been shown to be more creative than transactional and laissez-faire leaders.

We’ll go through each of these styles in-depth as we go along.