The term ‘leadership’ is interpreted uniquely by many people in power.
Some people are great friends with their employees, whereas others like to assert their authority. However, sometimes it’s good to step back and view yourself through the lens of your team and assess whether your current leadership style is successful or not.
This article covers 6 different types of leaders, their strengths and weaknesses, and which types are best suited to particular industries. By the end, you should be able to consider which style would best fit your team!
1. The Autocratic Leader
An autocratic (or authoritarian) leader is a leader who makes decisions without input from subordinates or team members.
They maintain strict control over all aspects of work, and expect compliance with little to no delegation of their authority. Overall, the leader exercises full control over policies, procedures, and decision-making.
Strengths
• Can be effective in crises and make quick decisions.
• Maintains order and discipline among employees.
• Maintains a simple, clear hierarchy.
Weaknesses
• Can interfere with open communication, self-expression, and creativity.
• Can lead to resentment, disengagement, and lowered morale.
• Promotes a disconnect between superiors and subordinates.
Autocratic leadership is common in high stakes industries, such as the military, emergency services, factories, law enforcement, and construction.
This is because a high-level of efficiency and organisation are needed to correctly follow procedures, and ensure tasks are achieved with minimal error. Many of these industries also put people’s lives at risk – whether they’re the employees or consumers – so strict authority ensures safety.
2. The Democratic Leader
A democratic leader encourages team collaboration, values their team’s input, and involves them in decision-making.
Democratic leaders listen to their team members, foster creativity, and create an inclusive work environment where employees feel valued. However, the leader still retains the final decision-making authority.
Strengths
• Builds trust and increases morale.
• Encourages creativity and ownership over work and decisions.
• Enhances teamwork and cooperation.
Weaknesses
• Decision-making can be slower due to collective input.
• Could struggle to assert authority when necessary.
• Risk of conflict if too many opinions arise.
Democratic leadership is well-suited for creative, technological, educational, medical, and customer-centric industries. This is because these industries thrive on creativity, innovation, collaboration, and a variety of input. Employee engagement is also crucial for success, and differing perspectives can lead to effective business decisions.
3. The Transformational Leader
A transformational leader inspires and motivates their team to achieve extraordinary goals by fostering innovation, change, and personal development.
They focus on creating a specific vision, empowering others, and challenging norms to drive progress. Transformational leaders often lead by example, instilling passion, enthusiasm, and a shared sense of purpose among their team members.
Strengths
• Promotes innovation.
• Builds a strong sense of commitment to goals.
• Builds loyalty and trust.
Weaknesses
• Can overlook details or short-term issues.
• Risks burnout if expectations are too high.
• Can risk neglecting short-term goals.
Transformational leadership is best suited for industries surrounding technology, healthcare, education, politics, and entertainment. These industries thrive on innovation, change, and growth to achieve success and public influence. Having a strong vision for change also helps businesses stay relevant and take on new opportunities.
4. The Transactional Leader
A transactional leader focuses on structure, organisation, and performance, using a system of rewards to manage their team.
This leadership style is based on an expectation of following rules, meeting goals, and completing tasks in exchange for rewards (bonuses, promotions etc.) or facing consequences for underperformance.
Strengths
• Effective in achieving short-term goals and stability.
• Works well in high-structured environments.
• Strong discipline and accountability.
Weaknesses
• Can limit creativity and innovation.
• Can lead to disengagement if overly focused on rules and rewards.
• Can limit creativity and innovation.
Transactional leaders can thrive in industries with order and structure, such as manufacturing, retail and sales, financial services, customer service, and logistics. These industries have clear expectations, targets, and goals that need to be achieved to function successfully. Rewards (benefits, discounts) are also heavily incentivised in these industries.
5. The Servant Leader
A servant leader prioritises the needs of their team, organisation, or community before their own interests.
Instead of focusing on authority, control, or personal gain, servant leaders emphasise empathy, empowerment, and ethical leadership, fostering a culture of collaboration and growth.
Strengths
• Builds strong and trustworthy relationships.
• Encourages high morale and effective collaboration.
• Promotes ethical decision-making.
Weaknesses
• May be seen as indecisive.
• Can struggle in high-pressure environments.
• May be perceived as ‘too soft.’
The servant leadership style can work efficiently in healthcare, non-profit organisations, education, hospitality, social services, retail, and coaching. These industries focus on teamwork, and are client-centred. Supporting employee development is also critical, encouraging empowerment to perform effectively within responsibilities.
6. The Laissez-Faire Leader
A laissez-faire leader takes a hands-off approach, allowing employees or team members to make their own decisions with minimal supervision.
Laissez-faire leadership is most effective when team members are highly skilled, self-motivated, and capable of working independently. However, it can lead to a lack of direction if employees are not self-driven.
The term comes from the French phrase meaning ‘allow to do,’ and the idea of simply letting people choose what to do.
Strengths
• Encourages creativity and self-motivation.
• Works well with highly experienced teams.
• Builds trust within a team.
Weaknesses
• Can lead to lack of accountability if not executed well.
• Risks inefficiency or conflict in less experienced teams.
• Can risk a lack of direction.
Laissez-faire leadership works well in industries based on creativity, research, technology, consulting, journalism, education, and sports. In these environments, employees typically have a high level of expertise and autonomy. Independence also fosters accountability, and supports creativity and innovation within certain roles.
The Bottom Line
As a leader, you can either fit into one box, or exercise a variety of characteristics and styles. Think about your own organisation and industry, and which leadership style would seem the most relevant based on your team’s experience, skills, and the overall structure of your business. Your main priority is to lead your business into long-term growth, so which type of leader are you?
Need some Advice?
If you’re looking to develop into a stronger leader, we can help with that. At People Associates, we offer personalised leadership development programs that are designed to help you grow, overcome challenges, and unlock your full potential.
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