Which Types of Leadership Styles Are Right for Me?

Effective leaders know when to modify their leadership style in order to achieve organizational success. In 2024, McKinsey & Co. concluded that leaders who were able to change their leadership style in step with changes in factors such as technological advances and employees’ motivations were better able to:

• Maintain their organization’s overall health
• Help employees continue to perform at their highest levels
• Maximize shareholder returns

Whether an individual is considering enrolling in a Master of Arts (MA) in Leadership degree program to gain advanced leadership expertise or is a veteran leader with many years of experience, they need to remain up to date on different types of leadership styles and when applying each of these styles can be beneficial.

What Are Leadership Styles?

A leadership style is the way a leader approaches working at the helm of a team or an organization, and how they handle responsibilities such as:

• Communicating with others
• Motivating employees
• Behaving in their role
• Making decisions

Defining specific leadership styles is a method of classifying the many ways in which individuals can lead others, and the unique aspects of various approaches to leadership.

Why Is Finding the Right Leadership Style Important?

The leadership style that an individual chooses can have a significant effect on the following:

• The overall culture of a workplace
• How well employees and teams perform
• Whether an organization’s employees communicate well
• Employees’ engagement and morale throughout the workplace

Choosing a leadership style also is important because each different leadership style works best under different conditions. For example, leaders should consider the following factors when selecting the best leadership style:

• Whether their organization is highly structured or thrives on creativity
• The skills and needs of the organization’s employees
• The degree to which the organization wants to promote innovation
• Whether their organization is experiencing financial growth, stability, or instability

4 Types of Leadership Styles and Their Benefits

Exploring specific types of leadership styles and the benefits they each offer can be a good way to begin understanding the range of styles that leaders can follow. Four of the most common leadership styles are described below.

1. Servant Leadership

Servant leadership is a style that is focused on supporting others. Leaders who practice servant leadership concentrate on providing the people they lead with what those individuals need to succeed. For example, servant leaders ensure that employees have access to the professional development opportunities or mentoring resources they require to perform well.

Servant leaders emphasize the personal development of others, communication, and compassion. They also stress the importance of respect for one’s fellow employees and accountability for one’s actions.

Servant leadership can be a good style for leaders to apply when their organization wants to spur innovation, promote collaboration, or strengthen employees’ trust in the organization in times of change. However, it might not be the best leadership style to implement when an organization needs to move quickly or wants to build a relatively rigid structure.

Benefits of Servant Leadership

Implementing a servant leadership style can foster strong feelings of trust among employees, which can increase employees’ productivity. This style of leadership also can be a catalyst for improving employees’ morale, encouraging collaboration, and instilling an overall culture of positivity.

2. Transformational Leadership

Transformational leadership is a style that concentrates largely on inspiring and motivating others. Transformational leaders serve as role models, consistently demonstrating the high standards for workplace behavior that they want others to uphold. They encourage employees to look for opportunities to innovate, apply their creativity, and find new ways to solve problems.

Transformational leaders also place an emphasis on ensuring that others understand and commit to the organization’s vision. They look for ways to help others feel a sense of purpose that is connected to that vision.

Transformational leadership can work best when employees are skilled and require relatively modest levels of direction or guidance, or when innovation is a critical element in achieving success. But when organizations need to accomplish specific goals in a short amount of time, transformational leadership might not be the best style of leadership to implement.

Benefits of Transformational Leadership

Employing a transformational leadership style has the potential to boost employees’ performance and well-being. Employees also can feel a deep sense of empowerment when their leaders take a transformational approach to leadership. When executed well, transformational leadership can enable the development of a strong connection between the individual success of an employee and the overall success of the organization.

3. Transactional Leadership

Transactional leadership is a style that is focused on rewards and punishment. Transactional leadership is characterized by clear expectations and structures, and by well-defined roles. When employees perform their specified roles well, leaders reward them. However, employees who do not perform well face consequences such as disciplinary action or even the end of their employment.

Transactional leaders emphasize the importance of following procedures and meeting performance standards. They step in when employees underperform and provide guidance to help the employees elevate their performance. To succeed, transactional leaders need to be very clear in their communication and ensure that employees have a thorough understanding of what leaders expect from them.

When organizations want to avoid variation and emphasize consistency, transactional leadership can be a good leadership style to implement. However, transactional leadership might not be the best approach to leadership when organizations need to have the flexibility to innovate or make significant changes.

Benefits of Transactional Leadership

Using a transactional leadership style can be a good way to instill stability in a workplace. This style of leadership also has the potential to keep employees focused on the task at hand. Transactional leadership can be a good approach for establishing clarity and motivating employees to earn rewards for good work.

4. Laissez-Faire Leadership

Laissez-faire leadership is a style in which employees have considerable decision-making authority and manage their own work. Laissez-faire leaders offer very minimal direction to employees, but they remain available for employees to consult with them when necessary.

While they support their employees, leaders who employ a laissez-faire approach concentrate on delegating tasks and allowing employees to make their own choices about how best to complete those tasks. Laissez-faire leaders empower employees and trust in their ability to conduct their own work.

A laissez-faire style of leadership can work best when employees are highly skilled and when organizations rely on the creativity of their employees to get the job done well. Employees who are already driven to succeed and have a passion for their work can thrive under a laissez-faire leadership style.

Benefits of Laissez-Faire Leadership

A laissez-faire leadership style can be effective when an organization needs to accelerate the decision-making process and eliminate the time it takes to obtain approval for decisions through a structured chain of command. This leadership style encourages innovation, so it also can be a good leadership style to employ when the work to be done requires a high degree of creativity.

Acquire Expertise in Leadership With a Master’s Degree

Knowing about different styles of leadership and the benefits of specific approaches to leading others can be invaluable to individuals when they rise to positions of leadership. Pursuing an advanced degree in leadership can help professionals establish a solid educational foundation that will enable them to steer organizations toward success.

If you are interested in gaining advanced expertise in leadership, explore the online MA in Leadership degree program that Belmont Abbey College offers to learn how it can help you achieve your goals. The program helps students prepare for leadership roles across industries by teaching them how to lead organizations effectively and ethically.

Now is the time to build your knowledge and skills in leadership.

Recommended Readings

Servant Leadership vs. Transformational Leadership: Key Differences
How to Make Your Organization a Data-Driven Organization
How to Successfully Lead Through Change

Sources:

Career Concepts, “Servant Leadership: Why It’s Good for Business and How to Practice It”
CIO, “What Is Transformational Leadership? A Model for Motivating Innovation”
Forbes, “Who Is a Servant Leader and What Does It Take to Be One?”
International Consortium for Agile, “The Pros and Cons of 10 Common Leadership Styles”
McKinsey & Co., “Healthy Organizations Keep Winning, but the Rules Are Changing Fast”
The National Society of Leadership and Success, “What Is Servant Leadership and How to Apply It”
Payset, “Transactional Leadership vs. Transformational Leadership: Understanding Their Differences and Similarities”
U.S. Chamber of Commerce, “7 Steps to Finding the Leadership Style That Works Best for You”
U.S. Chamber of Commerce, “What Is Laissez-Faire Leadership?”
Verywell Mind, “How to Lead: 6 Leadership Styles and Frameworks”
Verywell Mind, “How Transformational Leadership Can Inspire Others