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Home Business

The 8 Different Styles of Leadership

The FINANCIAL by The FINANCIAL
April 2, 2023
in Business
Reading Time: 4 mins read
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There are always difficulties that make leadership challenging, regardless of how big or small your team is. Leadership is never easy but once you understand what true leadership is, you will be much more likely to succeed as a leader.
A team leader inspires followers to collaborate towards a common goal. The productivity of the team will be maximised by effective leaders who create workplaces that encourage harmony and open communication. There is no one definition of leadership. While some leaders work to encourage their team to perform at higher standards, others may push to work alongside their co-workers and strive for the best outcomes.

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Why is Leadership Important? London School of Business & Finances found answers:

Leaders are crucial because they have a significant impact on how well a team performs.

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It is an essential management function for an organisation that guarantees increased effectiveness and the accomplishment of corporate goals.

There are various approaches and strategies to being a leader that can motivate and inspire their team. The way a leader makes choices, gives instructions and interacts with their co-workers all indicate a certain type of leadership style.

Let’s take a look at each style and discover the one that aligns with you the most.

What are the Different Styles of Leadership?

As a leader, you encourage others to take on responsibilities and grow professionally and personally. Each leadership style has its unique characteristics and advantages.

Democratic Leadership
Democratic leaders make decisions based on the insights, opinions and perspectives of their teams, where everyone participates in the decision-making process. It is effective because it gives everyone a chance to share their ideas regardless of hierarchy.

Delegating authority to those who make job assignments is another aspect of democratic leadership. It carries out tasks by utilising the skills and knowledge of team members.

Autocratic Leadership
Autocratic leadership has distinct differences to Democratic leadership. These types of leaders make all the decisions on their own behalf without consulting or soliciting advice from the team. They are in charge and can order any task to be completed at any time.

In situations where decisions must be made quickly and the leader is aware about the facts around the decision, it can be a successful strategy.

Strategic Leadership
This type of leadership involves knowing the appropriate skills and abilities to encourage a team to work towards long-term goals.

Strategic leaders work hard to bring out the best in people and situations by developing skills in self-awareness and earning respect whilst valuing a good level of understanding and communication.

Transformational Leadership
Transformational leadership involves inspiring others to achieve something unexpected. You must be in a position where you can transform, motivate and improve team members’ capabilities for the organisation to function well and reach its goals.

Transactional Leadership
This is a more task-oriented type of leadership. Team members should aim to meet the leader’s expectations in order to receive either rewards or positive feedback in return. It is one of the most prevalent leadership styles that is based on the reward-and-action concept.

Bureaucratic Leadership
Bureaucratic leadership is the kind of leadership where procedures and rules are adhered to through strict policies. Workflow guidelines are set up, and bureaucratic executives make sure that team members adhere to them rigidly.

Bureaucratic leadership is often linked to large, decades-old businesses that have achieved success by adhering to established procedures.

Coach-Style Leadership
This leadership style concentrates on nurturing and finding their team members’ strengths and weaknesses. As a coach and leader, you develop strategies that help the team’s members succeed.

Charismatic Leadership
The purpose of charismatic leadership is to inspire and encourage followers. A leader’s skilful communication brings a team together to achieve a common goal.

Not all leadership styles will be appropriate for every setting, so it’s best to mix and match and find the best leadership approach for your situation.

How to Find Your Leadership Style

There are a multitude of factors that all play a role in selecting a leadership style. The types of people on the team, the aims of the company and the organization’s culture can all impact the type of leader you should be.

A competent leader should be adaptable and change their approach depending on the circumstances and the people they oversee.

Choosing a leadership style requires considering the following factors:

Recognise your group: Learn about the personalities, strengths, and weaknesses of the people on your team. You can decide how to guide them best using this information.
Analyse the circumstances: Examine the task’s nature, the goals and the culture of the company. A directive approach may be necessary in some circumstances, while a more collaborative approach may be necessary in others.
Figure out your advantages and disadvantages: Think about your own leadership qualities as well as your strengths and weaknesses, and how you may change your approach to make up for any shortcomings.
Stick to your principles: Make sure your leadership style is consistent with your values and principles since doing so will help you set up credibility and trust with your team.
Be adaptable: The most successful leaders are those who can change their styles to meet the demands of their teams and the circumstances at hand. Keep in mind that no leadership style is ideal for every circumstance.
In the end, choosing the best leadership style means striking a balance between being true to one’s principles and leadership strengths while also understanding the demands of the team and the environment.

Finding a good mentor who can help you develop your style is also essential while choosing your leadership style. Good leadership skills and knowledge of different leadership styles will add a great deal of value to an organisation and have a positive impact on team members.

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The FINANCIAL

The FINANCIAL

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