If you want an organization to function effectively, invest in an employee. But if you want the organization to grow, invest in a leader. Leaders are individuals who guide an organization like how a captain sails the ship.
As defined by theory, there are 5 types of leadership styles followed by leaders. No one glove fits all, and it is the prime responsibility of the leader to ensure the leadership style chosen aligns with the vision of the organization, and at the same time resonates with the employee’s goals.
Here are 5 leadership styles that have been practiced widely.
- Participative Leadership
- Transformational Leadership
- Delegative Leadership
- Authoritarian Leadership
- Transactional Leadership
Different leaders follow different leadership styles, and below is a deeper explanation of the traits, pros, and cons associated with these styles. Identify which one you are and let us know in the comments section below.
1. Participative Leadership
As the name suggests, it is a democracy-based leadership style. All the team members are involved in the decision-making process. It makes the employees feel included, motivated and engaged as they make critical decisions. Although the final decisions rest with the leader, the majority wins. Sometimes, if there are any disagreements within the team, taking a final decision can prolong.
Participative Leadership Traits: Curious, excellent communication & listening skills, broad-minded, encouraging, collaborative, and receptive.
Leaders who practiced this leadership style: Bill Gates, Indra Nooyi, and Donald Trump.
Pros and Cons of Participative Leadership
| Pros | Cons |
| Motivation and productivity Increases | Time-consuming |
| Improves job satisfaction | Possibility of communication failure |
| Encourages employee creativity | Lack of security due to multiple people involved |
| Instigates teamwork and ownership |
2. Transformational Leadership
This leadership type has four elements commonly referred to as the four I’s:
- Idealized Influence
- Intellectual Stimulation
- Individual Consideration
- Inspirational Motivation
In this style, the leader encourages the employees to attain a certain goal and in the process empowers them to become a leader themselves. Here, the leader acts as a role model from whom the employees can draw inspiration.
Transformational Leadership Traits: Simplicity, team-first attitude, communicative, risk tolerance, visionary, charismatic, and active listener.
Leaders who practiced this leadership style: were Barack Obama, Steve Jobs, and Jeff Bezos.
Pros and Cons of Transformational Leadership
| Pros | Cons |
| Communicating new ideas | Can be deceptive |
| Ideal for collaboration | Constant guidance & motivation required |
| Increased innovation and creativity | Lack of focus on short-term needs |
| Establishing trust |
3. Delegative Leadership
This leadership style focuses on delegating initiatives to team members. Also known as laissez-faire leadership, this can be successful if employees are engaging, responsible, and competent. And based on research by leadershipandperformance.com.au, this was the least productive leadership style.
Delegative Leadership Traits: Freedom in decision making, high trust level, access to multiple resources, and responsibility.
Leaders who practiced this leadership style: Warren Buffet, Herbert Hoover, Queen Victoria, and Paul Allen.
Pros and Cons of Delegative Leadership
| Pros | Cons |
| Promote Creativity and Innovation | Difficulty in adapting |
| Positive work environment is created | The extent of command is not well-defined |
| Encourages competence and experience |
4. Authoritarian Leadership
It is mostly like a one-person show where the leader makes all the critical decisions and the employees follow them. This leadership type can only be implemented if the leaders possess the required knowledge and skills and can be very effective in time-constrained situations. Also, it helps when employees need clear direction and guidelines about the work process.
Authoritarian Leadership Traits: Strong decision-making abilities, decisive leadership, and efficient crisis management.
Leaders who practiced this leadership style: Adolf Hitler, Vladimir Putin, Kim Jong-un, Benito Mussolini, and Richard Nixon.
Pros and Cons of Authoritarian Leadership
| Pros | Cons |
| Time saving on critical decisions | More pressure on the leader |
| Creates consistent results | Can instigate employees to rebel |
| Mistakes on plan implementation can be reduced | Lack of feedback |
| Higher level of clarity | Possibility of higher churn rate |
| Boost in productivity | Eliminates innovation and creativity |
And here we come with the last and final type of leader, and that is:
5. Transactional Leadership
As the name suggests, this type of leadership works on a transactional basis. You will be rewarded or levied a penalty based on task completion. It is up to the leader to set clear objectives and get them done, and offer a reward for the same. It is more of a give-and-take leadership style.
Transactional Leadership Traits: Left-brained, revel in efficiency, opposed to change, inflexible, and rule-oriented.
Leaders who practiced this leadership style: Howard Schultz, Joseph McCarthy, and Charles de Gaulle.
Pros and Cons of Transactional Leadership
| Pros | Cons |
| Measurable time-bound goals are set | Lack of innovation and creativity |
| Productivity and employee motivation increase | Empathy is not given importance |
| Minimizes confusion | More followers are created rather than leaders |
Why choosing a leadership style is important?
Knowing the leadership style gives you clarity on how to deal with your team and organization. There will be clear defined roles and responsibilities that you would carry out while pursuing this leadership style. And more importantly, it plays a major role in self-progress and that of your team.
Concluding Thoughts
Now that you know the different leadership styles, which one would you implement as a leader? Which type of leader is your favorite? Let us know in the comments.
Also, if you are planning to take up critical roles in your organization, it is essential to follow a scientific and strategic approach to help the organization grow. And that is what is bundled into the 3-month Future Leaders Program, delivered by NUS Business School, in association with Great Learning. It is specifically designed for professionals transitioning into leadership roles.
