Leadership Styles are a key part of effective business leadership. They help you adapt your approach to suit the needs of your team and organisation.
Leadership styles are based on your own personality and values, but they also depend on what type of work you do. It’s important to learn about your leadership style and find out which types of situations it works best in.
Laissez-faire
Laissez-faire leadership is a form of leadership that advocates minimal government interference in economic affairs and free-market capitalism. It is often associated with political leaders, but it can also be used in business leadership.
Leaders who use this style delegate large responsibilities to their subordinates and expect them to take care of the rest. This can lead to a more relaxed company culture where employees feel they have freedom and can work independently.
Employees in this type of leadership often feel confident in their abilities and can thrive in the environment, which results in higher retention rates.
Newcomers to the workplace may have trouble adjusting to this style of leadership, and there can be confusion about who is in charge at times. If this is the case, leaders can try to connect with their employees by observing their performance, addressing issues as soon as they appear, and encouraging course correction if needed.
Strategic
Strategic leaders create a vision for their company and inspire others to work toward that goal. They often have a keen sense of foresight and can see future opportunities that might not be apparent to others.
They are also strong communicators and know how to effectively delegate responsibilities. They can gauge the strengths and weaknesses of their team members, so they assign roles based on their abilities.
These leaders rely on a clear set of goals or tasks, and they make it clear how rewards will occur for those who meet their expectations. They also encourage teams to take initiative and challenge the status quo.
These leaders are committed to their decisions, and they will do whatever it takes to reach them. They are tenacious and have a strong work ethic, but they can also adapt to challenges as they arise.
Transformational
Transformational leaders use their leadership skills to inspire team members and motivate them to take action towards a common vision. They do this by articulating an energizing vision of the future and challenging goals.
They can also encourage employee loyalty by making their team feel valued, respected and committed to the success of the organization. This may help to decrease turnover rates and increase productivity within the organization.
When it comes to implementing this style, it’s important to understand that each team member has different needs and expectations. To keep employees motivated and engaged, a transformational leader must genuinely care about each team member’s unique concerns.
Moreover, they must be able to articulate a common vision that motivates team members to exceed their expectations and make the organization’s vision a reality. This style also requires a high level of emotional intelligence, empathy and a willingness to collaborate.
Transactional
A transactional leadership style is one where leaders give their employees specific tasks and rewards if they meet performance standards. This is a great style for teams that need to meet strict deadlines or increase production.
The history of this leadership style dates back to the 20th century and was first described by a German sociologist named Max Weber in 1947. It was commonly used in the United States after World War II when the government focused on rebuilding and required a high level of structure to maintain national stability.
Leaders of transactional styles often focus on supervision, organization and methodical approaches. They are also efficient and practical, which is ideal for organizations that operate on a strict corporate structure.
While this leadership style is effective for linear projects and specific processes, it doesn’t encourage creativity or innovation. It can also create rigidity in the workplace. Ideally, it should be used in conjunction with a more transformational leadership style.