Common Leadership Styles You Should Know

Leadership is a hotly discussed topic among intellectuals and business circles. When running a simple towing service business, you will have employees looking and learning from your character and conduct. Leadership is adaptive and fluid. What works today might not work tomorrow. As leaders, we need to where we stand today and what we want to achieve tomorrow.

To help you in understanding the impact each type of leader has on a company, let’s explore common leadership styles.

Democratic Leadership

Democratic leadership is a commonly effective leadership style. The leader makes decisions based on the input of every team member. Although the leader makes the final call, it starts by keenly listening to the views of each member, to help make the final decision. Democratic leadership is one of the most common and effective leadership styles because it allows lower-level employees to exercise their authority and decide on what happens.

Autocratic Leadership

This is a rarely effective leadership style and it’s the inverse of democratic leadership. With this leadership style, the leader makes decisions without taking input from anyone who reports to them. Employees are neither consulted or considered before making a decision. They are expected to adhere to the decisions made. An example of a decision under this category is changing work hours and shifts.

Laissez-faire Leadership

This type of leadership is sometimes effective. It is a leadership style characterized by – ‘let them do’. In young startups, you might find this type of leadership style to be common among team members. Founders may put their full trust in their employees while they focus on other aspects of running their business. Although this type of leadership empowers employees through trust, it can hinder their development.

Strategic Leadership

Strategic leadership sits at the intersection of a company’s main operations and its growth opportunities. It works with accepting the burden of executive interests while ensuring current working conditions remain as stable as possible. It is a desired leadership style in many companies because strategic thinking supports different types of employee desires. However, leaders operating this way can set very dangerous precedence concerning the number of people they can support at any given time because everyone wants things to go their way.

Transformational Leadership

Transformational leadership is one that is focused on transforming and improving company operations. Employees are provided with a basic set of tasks and goals they have to complete at a given time, be it weekly, monthly, or yearly. However, their leader is always pushing them beyond their comfort zones. When starting a task with this type of leader, employees might get a list of tasks and goals to reach as well as a deadline for reaching them. While the goals might be simple at first, they become more challenging as the deadline nears as a company grows.

Transactional Leadership

Transactional leadership is fairly common today.  Managers reward their employees for the exact work they do. People only get bonuses for expectations met and exceeded. When starting a job with this type of leadership, you might receive an incentive at the start of the work to keep you motivated, as you work pon quickly mastering your duties. This leadership style works at establishing roles and responsibilities for each employee, but also encouraging bare minimums.

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