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PDF - 7 effective leadership styles you may want to consider
Here at the BBB, we understand that there is no clear answer when it comes to which leadership style is most effective. That's because effective leadership is a skill that is acquired over time through experience, trial, and error. This means that everyone is a unique blend of their own leadership style, which helps explain the wide variety of leadership styles observed in the workplace over the years.
However, a handful of leadership styles tend to be more common than others. So, if you're looking for an effective leadership style that is likely to work in a corporate setting, you may want to consider one of the following seven models.
7 effective leadership styles you may want to consider
As a business owner, you have a lot on your plate. It’s easy to get bogged down by things like marketing and accounting, but what about the people you employ?
If you’re like most business owners, you have a lot of gray hairs, and some of those gray hairs come from bad leadership decisions. Should you go with a traditional authoritarian style of managing your employees? Or should you use a more relaxed style like a coach?
Here are seven effective leadership styles you may want to consider, and each has its benefits and drawbacks.
1. The affiliative leadership style
The affiliative leadership style is when the leader tries to create an atmosphere of inclusivity and camaraderie among the employees. They also try to be friends with their employees, and they may even host parties or outings together.
With approximately 79% of employees saying they will quit their job after receiving inadequate appreciation from their leadership personnel, this approach has become increasingly popular.
2. The authoritative leadership style
The authoritative leadership style is one in which the leader sets the expectations for the employees, and they expect the employees to follow those expectations.
This can create a culture of 100% compliance among the employees, making it difficult to dissent or ask questions. The employees will also likely feel resentment if they disagree with the leader’s statement.
With studies showing that nearly 83% of U.S. workers suffer from work-related stress (and 25% stating that their job is their No.1 stressor in their lives), this leadership style is likely not the best option for those who are looking for a healthy work environment.
3. The autocratic leadership style
This style closely resembles the authoritative leadership style, except that the leader makes all the decisions and takes all the risks. This often results in employees doing whatever it takes to please the leader, which can cause them to work long hours and avoid taking time off.
However, recent studies have shown that nearly 21% of employees can see some benefit to this leadership style because it gives them clear direction and goals to work toward.
4. The coaching leadership style
The coaching leadership style is one in which the leader is a mentor and teacher to the employees, encouraging them to learn and grow. The leader also sets clear expectations and provides feedback to the employees so that they can improve. This can create a culture of motivation and accountability, which is beneficial to the employees.
Multiple studies have shown the benefits of this leadership style within the workplace. In one case study, 77% of respondents at a Fortune 500 company indicated that this style significantly impacted overall employee productivity and customer satisfaction, and employee engagement.
Another study showed that approximately 70% of people who received coaching benefited from improved workplace performance, relationships, and improved communication.
5. The democratic leadership style
The democratic leadership style is one in which the leader consults with their employees on decisions and allows for open dialogue. They also allow their employees to have input on decisions and provide them with the opportunity for growth.
Research shows that 74% of employees feel they are more effective at their job when they feel heard. This approach encourages employees to be themselves and be creative, resulting in them developing unique abilities that can benefit the company.
6. The laissez-faire leadership style
The laissez-faire leadership style is when the leader takes a hands-off approach to the employees. They allow the employees to work independently, focusing on completing their own goals and objectives. This can create a culture of employees doing whatever it takes to meet their own purposes, leading to them neglecting the company’s needs.
While 72% of workers who are encouraged to act and make decisions on their own say they are satisfied with their jobs, it's still important to make sure your employees have the proper balance between being autonomous and being held accountable.
7. The pacesetting leadership style
The pacesetting leadership style is when the leader sets and maintains a pace for the employees. They set goals, provide feedback, and hold the employees accountable for their actions. This style is often effective in creating a culture of accountability, but it may cause the employees to resent the leader because they don't have the opportunity to express themselves.
This style ensures that those in leadership are highly engaged, resulting in more engaged employees. In fact, employees supervised by highly engaged leadership are 39% more likely to be involved in their work.
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BBB of Southern Piedmont and Western N.C. contributed to this article.