Just as individuals have their own unique personalities, leaders could adopt different types of leadership styles. Whether you’re assigned to lead a project, team, department, or the entire organisation, you’d be more confident and effective when you have clarity on the kind of leader you are and the type you need to be to fullfil the demands of your role.
Leadership style describes a leader’s method and manner of directing, managing, and motivating people. It can be observed in how they communicate, strategise, and implement plans in the best interest of their team, organisation, and stakeholders.
Leadership style is not a one-size-fits-all approach. It needs to evolve and adapt to your current situation, company culture, and work environment. At Kompass Consultancy, we help leaders define and fine-tune their leadership style through executive coaching programmes in Dubai and Abu Dhabi.
No leader is built the same, but they can be generally classified based on leadership style. We’ve outlined the 10 types of leadership styles along with their benefits and challenges, so you can discover which aligns with your personal values and suits the dynamics of your team and organisation.
10 Types of Leadership Styles
– Autocratic Leadership
Autocratic leadership, also referred to as authoritarian, is characterised by a leader whose primary focus is on delivering results and increasing team efficiency. To streamline decision-making, they make tough choices based on their own judgment and expertise. At most, they only involve only a select group of people.
Autocratic leaders are accountable for their decisions and expect their teams to follow through with their recommendations. They’re dependable and self-motivated leaders who can communicate clearly and thrive in highly structured work environments.
Benefits:
– Great in crisis management, where quick decisions need to be made
– Applicable to highly technical projects or industries
– Promotes productivity with clear task expectations and instructions
Challenges:
– Autocratic leaders are often under a lot of stress and pressure
– Employees may feel disconnected and disengaged, leading to high turnover
– Overreliance on leaders can hamper innovation and creativity
– Bureaucratic Leadership
Similar to autocratic leaders, bureaucratic leaders appreciate structure and rules. While they are more open to their employees’ input when making decisions, they can also be quick to reject them if they go against established practices or company regulations and policies.
Bureaucratic leadership is common in traditional institutions with hierarchical systems. These leaders are analytical, self-disciplined, and known for having a great work ethic, as they often prioritize the company’s needs.
Benefits:
– Suitable to highly regulated industries like healthcare, law, or finance
– Instils stability and order with clearly defined guidelines and chain of command
– Reduces uncertainty with a fixed set of responsibilities for each employee
Challenges
– Resistant to change
– Hierarchical nature can inhibit collaboration and cause communication delays
– Employees may feel restricted and micro-managed
– Democratic Leadership
Democratic or participative leadership style fosters transparency and open communication in the workplace. Here, employees are encouraged to voice their opinions and take ownership of the role they play in decision-making. Employees engage more with the organisation because they share the same vision of success and understand what it means for their own professional development.
Democratic leaders are supportive, inclusive, and intelligent communicators. They welcome different perspectives and value brainstorming sessions, but they still have the final say on decisions when the team is unable to reach a consensus.
Benefits:
– Employees feel heard and empowered, boosting morale and job satisfaction
– Promotes teams to think of original solutions
– Builds mutual trust and respect with an inclusive work environment
Challenges:
– Decision-making may take time and be unproductive due to multiple perspectives
– Some employees may feel frustrated when their idea is not chosen
– May add social pressure on employees who are not outspoken
– Laissez-faire Leadership
Laissez-faire is a French term that translates to “let them do.” Also known as delegating leadership style, laissez-faire leaders are usually hands-off unless a situation calls for urgent attention. They delegate tasks but give their employees autonomy over their work and trust them to deliver on their goals and commitments.
Since employees are entitled to make decisions, laissez-faire leadership style is the complete opposite of an autocratic leadership style. Instead of supervising their employees, laissez-faire leaders make them accountable and incentivize them to do their best work. Laissez-faire leaders also tend to focus on developing strategies, taking on more projects, and general business management.
Benefits:
– Suitable for creative industries like ad and marketing agencies
– Employees feel empowered to work independently
– Works for teams with highly experienced and self-motivated individuals
Challenges:
– New hires may have trouble adjusting without defined roles and responsibilities.
– Dips in productivity with no one keeping track of deadlines
– Lack of teamwork and cohesion with people working in silos
– Pacesetter Leadership
Pacesetter leaders have ambitious goals for the organisation, which they plan to achieve with competent teams. These leaders have high standards for their employees and themselves. They lead by example, set targets or KPIs, and expect their employees to produce exceptional output in a timely manner.
A pacesetter leadership style could be ideal for employees who thrive in fast-paced environments. These leaders encourage people to grow out of their comfort zones, adding time pressure. They work alongside their teams, ensuring everyone is aware of their tasks and keeping track of everyone’s progress.
Benefits:
– Holds everyone, including themselves, accountable for their work.
– Fosters a dynamic and enthusiastic work environment.
– Targets, KPIs, and deadlines could be motivational tools or welcoming challenges for skilled and experienced employees.
Challenges:
– Leaders may create a high-pressure work environment when goals or deadlines are unrealistic or cut too close.
– The heavy focus on goals and efficiency may sap creativity and diversity of ideas for problem-solving.
– Employees who struggle to meet the set standard may feel demotivated, overwhelmed, or prone to burnout.
– Transactional Leadership
A transactional leadership style applies the principle of give-and-take through a reward and punishment-system attached to employee performance. For instance, travel incentives, bonuses, or plaques are rewarded to employees who meet or beat the set quota. On the other hand, employees who commit a company offense may be punished with a suspension.
Transactional leaders are results-oriented with a high regard for efficiency and productivity. This is among the leadership styles common in large-scale organisations with pre-existing rules and policies, as well as those with remote or part-time work arrangements.
Benefits:
– Performance management system that is easy to implement and understand.
– Ideal for self-motivated employees who appreciate clarity in structure and job expectations.
– Rewards contribute to job satisfaction as they give employees something to look forward to and be excited about.
Challenges:
– Rigid rules, procedures, and punishments can dampen employee morale
– Employees may hesitate to share ideas in fear of repercussions, stifling creativity.
– Disengaged employees can lead to high and impractical turnovers.
– Transformational Leadership
As the name suggests, transformational leaders pave the way for change and promote continuous improvement. They communicate a compelling vision of success for the organisation and everyone involved. They inspire their teams to band together, innovate, and direct all efforts toward achieving the collective goal.
A transformational leadership style is especially effective when an organisation needs to update specific business policies or processes to remain competitive and relevant. These leaders motivate employees to embrace change by harnessing their skills and developing a pipeline of future leaders while driving organisational success.
Benefits:
– Crucial in times of change, such as restructuring, mergers, rebranding, diversification, or innovation of new products or services.
– Aligns and connects employees to company values, vision, and goals.
– Builds work relationships, increasing employee engagement.
Challenges:
– Workplace environment can be too competitive, contributing to employee burnout.
– Certain benchmarks may not apply to individual learning curves.
– May not be ideal for less experienced teams who need a more hands-on approach.
Coaching Leadership
Coaching or conscious leadership is when managers try their best to spot and build on the strengths of each individual in their teams. These leaders delegate tasks that enable employees to learn, practise, or master their skills and create opportunities for collaboration.
A coaching leadership style builds trust among team members by promoting open communication and psychological safety. Coaching leaders encourage employees to share ideas, give and receive feedback, seek challenges, and learn from one another.
Benefits:
– Advocates for skill development with new tasks and challenges
– Offers personalised guidance for professional advancement
– Strengthens teamwork, diversity, and synergy
Challenges:
– Coaching every employee can be time-consuming, especially for large teams.
– Requires consistent feedback and guidance.
– Some employees are resistant to coaching and feedback.
– Visionary Leadership
A visionary leadership style involves setting big goals to bolster future and long-term organisational growth. These leaders present a roadmap for success and forecast potential roadblocks. They rally teams to work together and come up with out-of-the-box ideas and solutions.
Visionary or affiliative leaders are charismatic, persistent, and strategic. They’re also generally optimistic about taking calculated risks.
Benefits:
– Unites teams and instils confidence in the organisation during times of uncertainty.
– Advantageous for organisations that are banking on rapid and impactful growth.
– Restores competitive edge by revamping outdated processes or technologies.
Challenges:
– Visionary leaders can be hyperfocused on a single long-term goal.
– May be oblivious to other opportunities that deviate from the agreed plan.
– Tendency to overlook present issues that may be a complication in the future.
– Servant Leadership
Servant leaders prioritize their team’s needs, putting them front and centre. They detach themselves from personal agendas and do what they can to make team members feel valued. Servant leaders believe that when individuals are fulfilled and satisfied with their personal and professional lives, they’re more capable of being effective, producing exceptional output, and contributing to the organisation’s success.
A servant leadership style is ideal for organisations that want to grow and expand their teams. These leaders are selfless and aim to inspire collaboration by raising employee morale. They take the time to understand every team member and their needs.
Benefits:
– Promotes a supportive and collaborative work environment
– Boost employee morale and engagement
– Ideal for managing remote workers and making them feel more involved
Challenges:
– Servant leaders may not be seen as figures of authority
– Servant leaders may overwork themselves in service of the team
– May not be ideal for organisations that require urgent and quick decision making
Final Thoughts on Types of Leadership Styles
The 10 leadership styles are common in most organisations today, each with its fair share of advantages and disadvantages. The best leadership style will ultimately be unique to you and how you use it to drive team performance toward organisational success.
Keep in mind that your leadership style can change or be modified as you move up the corporate ladder or handle different teams or projects. At Kompass Consultancy, we advise leaders to adopt a leadership style that allows them to be authentic to their personal values. Moreover, we encourage leaders to explore and experiment with different leadership styles to improve their own strengths and weaknesses and see which one the team responds to.
As certified executive coaches, we help leaders define and refine their leadership style as we guide them on a journey of self-discovery. We help them become leaders they admire by equipping and expanding their skill sets to be effective in their roles. Reach out to us to learn more about our executive coaching programmes in Dubai and Abu Dhabi.
