There are countless different leadership styles, each one suited to different personalities and situations. When it comes to picking suitable techniques for you, it is essential to consider your entrepreneurial strengths, weaknesses, and goals.
While many of the most common leadership styles have traits in common, they have key differences that set them apart. Read below to understand some of these options and see which suits you (and your growing business) best.
Autocratic
An autocratic leader feels comfortable making decisions on their own. They don’t need to rely on a team to make hard choices, nor are they willing to share the power they wield. As such, autocratic leaders have complete control over their teams.
Autocratic leadership allows for clear guidelines and rules, making it easier for employees to understand their organization’s roles. However, it is also a demoralizing leadership style, resulting in employees feeling disrespected or unappreciated.
Democratic
Democratic leadership is a blend between autocratic and laissez-faire (see below) leadership styles. A democratic leader makes the final decision but will typically listen to their team before coming to that conclusion.
A democratic leader is capable of listening to employees, which means that they can get the best out of every team member. There’s a higher chance of feeling respected in this type of leadership. However, this style of leadership does not lend itself to quick decision-making.
Laissez-Faire
Next, there’s laissez-faire leadership. With this style, there’s much more freedom for employees to handle their work and deadlines. It’s a very hands-off approach to leadership, one that requires a lot of trust and accountability.
Laissez-faire leadership gives employees the autonomy that many crave, especially self-starters who like to work at their own pace. However, this is also a style that can quickly be taken advantage of or difficult for employees that need more structure.
Transactional
Conversely, there’s transactional leadership. Transactional leadership, as the name implies, views management/employee relationships as a transaction of sorts. Typically, it creates a reward system or structure for employees to follow.
Transactional leaders provide clear goals for employees and are excellent at rewarding success. However, this system can be considered manipulative, especially in the hands of the wrong leader.
Visionary
A visionary leader guides their employees towards a common goal. They generally lead through motivation – meaning that they inspire their team to follow their lead towards the same purpose.
Visionary leaders tend to have highly loyal teams. More than that, the teams are dedicated to the goal as well as to their leader. However, they also tend to get lost in the bigger picture – meaning that details and critical information can be easily lost.