For every business organization, there is never a one type of leadership. The style of operation is different for every business unit. According to the environment that an establishment function is, proves to be a major factor in deciding what types of leadership traits will be applicable.
Senior executives can be benefitted if they have a proper understanding of various styles of leadership as it will enable them to adopt correct strategies for themselves as well as choose better managers for the whole organization.
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Following is a brief description of 9 types of leadership:
- Transformational Leadership
In transformational leadership, the whole staff is inspired with the help of effective communication and by developing an environment full of rational stimulation.
This style of leadership is frequently considered among the most desirable personnel. Nevertheless, these employees are blue- sky thinkers and in order to implement their premeditated visualizations efficaciously, they may need detail- oriented managers.
- Servant leadership
While practicing servant leadership, preference is given to power- sharing models of authority. People who are involved in servant leadership, gives importance to collective decision- making and give priority to the needs and preferences of their team.
Often companies describe this style of leadership as altruistic leadership. Various catalysts have researched that this leadership style can boost the morale of the employees and can enhance diversity. On the contrary, critics are of the view that servant leaders fall short of the power and the authority and there are chances that they might suffer from conflicts of interest by giving the employees more priority and putting them ahead.
- Transactional leadership
In this style of leadership, more focus is given to group organization. For all the activities of the management, carrot and stick approach is implemented.
This style of leadership is named as transactional because there is an exchange in this style i.e. good performances are rewarded and for every bad practices, punishment is given. In such circumstances, the employees may not be able to reach their full potential of creativity. However, this style of leadership can prove to be beneficial for carrying out short- term tasks.
- Autocratic Leadership
Autocratic leadership is an extreme version of transactional leadership. Leaders who are involved in this type of leadership, have a great control over the employees and do not follow the practice of sharing the powers. The suggestions from the workers and the employees are rarely appreciated.
Ruling with an iron fist is not at all accepted by the staff and it becomes the reason of absenteeism and high turnover. It can also lead to lack of creativity because directions are coming from a single person. This style of leadership is most common in military organizations and can also be used in the establishments where limited skills are required.
- Democratic Leadership
This style of leadership is also known as participative leadership. In this style of leadership, final decision is taken after considering the input from the team members.
The organization which is practicing this style of leadership is able to get higher levels of job satisfaction. It also leads to better level of creativity. On the contrary, sometimes democratic leadership may not prove to be beneficial in the establishments where it is imperative to take prompt decisions.
- Laissez- faire Leadership
In French, Laissez- Faire means ‘let them do’. While practicing this style of leadership, the leaders follow the hands- off approach. Employees are permitted to get on with tasks as they see suitable.
In the organizations, where there are the experienced employees, Laissez- faire leadership can be used. But, it is imperative that the leaders continuously monitor the performance of the employees. To prevent the slipping of work standards, effective communication between the employees and the leaders is very important.
- Bureaucratic Leadership
In highly managerial and controlled environments, bureaucratic leadership is practiced. In this style of leadership, adherence to the rules and code of conducts and a hierarchy is very important.
Bureaucratic leaders make sure that all the employees under him follow all the rules. This leadership works well in areas related to health and safety.
- Charismatic Leadership
There is a definite amount of intersection between transformational leadership and charismatic leadership. In both the styles, an extensive reliance is put on the charm and the personality of the leader.
But, charismatic leadership is considered less favorable. The reason being, the success of the project has a direct link with the presence of the leader. On the other hand, transformational leaders build a level of confidence among the employees under him which remains constant even if the leader moves on. A power vacuum is left with the removal of a charismatic leader.
- Situational Leadership
This theory was developed by management experts, ‘Paul Hersey’ and ‘Ken Blanchard’ in 1969. In this style of leadership, the leaders practice that leadership which best suits the needs of the environment which they are operating in. For instance, a democratic style of leadership can be adopted by a leader when discussion regarding commercial direction is going on with the senior executives. The leader may switch to the bureaucratic leadership while explaining the protocols of new factory to the workers.