A leadership style sets the tone for a team, the direction of a project, and the quality of work. Each leadership style carries a different approach, whether it’s to inspire employees, complete a project within a tight timeline, or encourage creativity in the team.
Effective management requires understanding various leadership styles and knowing when to apply each style. Whether you’re new to the management role or are looking for ways to improve your skills, here are the different types of leadership styles to add to your toolkit.
What are leadership styles in management?
Leadership styles were first established in the 1930s when social psychologist Kurt Lewin and his team performed the first study on group behaviour and leadership. This initial study outlined three basic styles: autocratic, democratic, and laissez-faire, each of which shapes group dynamics and outcomes. Since then, research on leadership styles has established more styles like transformational and servant leadership.
Management leadership styles focus on how decisions are made, how communication within the team is handled, and the relationship between managers and staff.
5 types of leadership styles for managers
1. Transformational
The transformational leadership style focuses on enacting change for the bigger picture. Managers with a transformational leadership style have a clear vision that inspires the team to adopt new approaches or perspectives. Transformational leadership involves a clearly set vision outlined by practical steps for change – managers inject energy into the team by taking the first step toward new initiatives, while connecting changes to the long-term goals.
The transformational leadership style works best in teams where creativity and innovation are a big focus,like in creative agencies or product development, as well as for teams that are undergoing structural changes or shifts in project goals.
2. Democratic
Democratic leadership styles encourage team members to participate in the decision-making process by providing input. While the final decision is still made by the manager, democratic leadership allows managers to hear from the team and consider all perspectives. This approach builds trust and transparency in the team and helps managers make better decisions. The democratic leadership style requires managers to be open to ideas and create opportunities for collaboration.
Democratic leadership is ideal for teams with experienced specialists or creatives who have much to contribute. This leadership style is especially useful for managers who are put in charge of a team that has specialised knowledge about the work – leveraging the expertise of the team can provide insights that managers would otherwise be unaware of.
3. Transactional
The transactional leadership style is built around clear expectations and reciprocating good work from team members. Transactional leadership focuses on achieving results by setting performance targets, deadlines, and milestone goals. When team members meet objectives, managers award bonuses and incentives to motivate future performance. While transactional leadership is practical, it does not necessarily mean that managers have to be cold or calculating. The idea is to drive results by making the team’s goals as clear as possible.
Transactional leadership styles play a niche role in high-performance teams where results can be measured and tracked, such as in sales or operational environments. By setting the bar in plain sight along with the potential rewards of success, managers can shape a high-performing and motivated team.
4. Servant Leadership
Instead of the usual top-down approach, the servant leadership style focuses on supporting the team’s growth and success. Managers put the needs of the team first by working to remove obstacles and empowering staff to better achieve goals. Servant leadership is effective in growing new teams for long-term capability, rather than focusing on short-term results.
The servant leadership style is well-suited for teams where culture and wellbeing are a big part of the business or organisation’s objectives. Schools, healthcare facilities, and non-profit organisations are examples of places where servant leadership tends to perform best.
5. Autocratic
Autocratic leaders make decisions independently and expect others to follow. As a more traditional style, autocratic leadership is focused on enforcing priorities and structure for the team. While this can sound rigid, autocratic leadership excels at driving results, especially for projects with tight timelines. Autocratic leaders simplify decision-making, giving teams clear goals to confidently work towards.
Autocratic leadership is best used in situations where safety, compliance, and time sensitivity are critical, such as in emergency response teams, construction, or the military.
How to find a leadership style that works for you
Finding the right leadership style for management will depend on the team, the business, and really, the personality of the manager. If you lean towards a more personable approach with your team, the democratic or servant leadership style will feel more natural. The autocratic and transactional leadership styles tend to work better for managers who want to focus on driving results.
To be an effective manager, you need to be able to move between styles as the situation calls for it. Much of this ability to adapt comes with experience – even seasoned managers can struggle to find a leadership style that works.
If you are committed to learning more about leadership styles in management and how to drive success in your team, consider learning from the experts. At Entry Education, we offer an online leadership training course designed for managers that delves into the role of leadership styles in management. Register to gain a deeper understanding of leadership styles and how to apply each style effectively.
