6 Common Leadership Styles – Which One is Yours?

Effective leadership is the key to any business succeeding.

Great leaders have a clear vision and can convey it clearly to their team.

They also promote a positive work culture by example, improving employee morale and retention, and attracting top talent.

However, no two leaders are alike, especially since different industries and teams require distinct leadership styles.

In addition, your leadership style could also evolve over time to match your current team or goals.

For example, what may have worked for your in-office team may not yield the same results with your virtual assistant or data entry clerk.

Finding and refining your current leadership style is essential to successfully managing your team and growing your business.

To help you find yours, let’s explore some of the most common leadership styles below.

Democratic Leadership

Also known as participative leadership, this leadership style encourages listening to your employees and including them in the decision-making process. 

A hallmark of this leadership style is open, free-flowing, and spontaneous communication. Democratic leaders are often inclusive, possess excellent communication skills, and are able to share responsibility with others.

This leads to higher employee engagement and satisfaction as they’re encouraged to share their thoughts on crucial matters. Democratic leadership also promotes creativity and diverse perspectives more than other leadership styles.

That said, it’s not without drawbacks. 

First, decision-making is much slower as it requires gathering others’ input. 

In addition, the decentralized nature of remote work complicates cooperation and communication between you and your team.

Autocratic Leadership

In contrast to democratic leadership, autocratic leaders often make decisions alone or with a small, select group. Once the decision is made, they expect their employees to support it without question.

Autocratic leaders are confident and highly-motivated beings that provide clear and direct instructions to their employees, reducing ambiguity and confusion.

Since only one person makes the decisions, they’re made faster and enable you to respond more quickly to urgent situations.

However, this kind of leadership can cause resentment among your employees, leading to lower morale and high turnover. It also increases your risk of stress and burnout, since you carry much of the weight on your shoulders.

Transformational Leadership

Got a knack for inspiring others?

If so, you might be a transformational leader.

As its name suggests, transformational leadership emphasizes positive change in organizations and people. These kinds of leaders motivate their team to continuously improve and grow beyond their comfort zones.

Thus, this leadership style is associated with high-growth organizations that foster innovation and long-term success. Due to the support they receive from their leaders, employees are also highly motivated and productive.

On the other hand, a transformational leader’s high expectations and constant drive for improvement can lead to burnout if not managed well. Additionally, a leader’s vague visions could lead to confusion and frustration.

Laissez-Faire Leadership

The complete opposite of Autocratic leaders, laissez-faire leaders provide minimal directions and allow their team members to make decisions. Among the various leadership styles, this is perhaps the most “hands-off” one.

This type of leadership is perfect if you’re working with highly experienced and independent employees. 

The high level of autonomy promotes accountability and encourages creativity and innovation within your team.

With online work becoming more mainstream, this has become a popular leadership style for business owners working with remote contractors.

Of course, the main downside of this leadership style is that there’s the risk of low productivity, and confusion among your employees about your expectations.

This also requires a great deal of trust between you and your employees, so bear that in mind.

Transactional Leadership

Did you have prior experience working as a manager before establishing your own business?

Why not put said experience to use as a transactional leader?

This leadership style focuses on establishing strong structures and routines and supporting your employees by emphasizing rewards and punishments.

This structured approach ensures that resources are used efficiently and that every employee knows their roles and responsibilities.

The downside of this is it may lead to a rigid work environment, due to the emphasis on planning and control. It can also enhance micromanagement tendencies, which further reduces employee morale and autonomy.

Servant Leadership

This leadership style emphasizes putting the needs of others first, rather than a select few. They believe that when their subordinates feel personally and professionally fulfilled, they’ll be more effective and produce better quality work.

Servant leadership creates a positive work culture and promotes creativity and problem-solving since employees feel empowered to share their ideas.

That said, focusing too much on your employee’s needs can lead to you neglecting your broader organizational goals.

Also, in some cases, employees may see these types of leaders as lacking authority or strength, undermining their authority.

Which Leadership Style Suits You?

With so many leadership styles, how do you find the right one for you? Here are some pointers you can use:

Consider Your Goals

Start with identifying your goals as a leader.

Do you want to build a high-performance team? Or perhaps you want to develop a new product or service?

Being clear about your goals helps you convey them clearly to your team and select a leadership style best suited to achieving them.

Experiment

Try different leadership styles to figure out which one/s suit/s you best.

For example, if there’s an urgent matter that your company must respond to now, an autocratic approach would be best. However, for more routine tasks, a more transactional form of leadership might be better.

Ask for Feedback

The hallmark of a good leader is their ability to receive constructive feedback.

Seek feedback from people you trust on your performance so you can make adjustments as needed.

Be Authentic

Finally, select a leadership style that matches your personality and values.

Being authentic fosters a culture of transparency and trust within your team, enabling you to form more genuine connections with them.

Ready to Lead the Way?

Part of being an effective leader is finding the right leadership style for you and your team.

While some leadership styles are better suited to a specific field or context, the best practice is to combine them and adjust your style as needed.

Are you looking to expand your current team via outsourcing? If so, Remote Staff is here to help.

Click here to see our full list of candidates for virtual assistants, virtual personal assistants, virtual receptionists, and more. Good luck!