5 Leadership Styles and Their Effectiveness

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There's a clear difference between bosses and the leaders, with latter being the obvious choice for any serious entrepreneur. However, it's not as easy defining just how a certain leader prefers to lead, which is extremely important for optimizing a team's effectiveness. Different leadership styles can be more or less effective depending on the challenges of the tasks at hand, as well as the needs of the people involved. Here, we'll cover five leadership styles and try to explain just what kind of an impact they can have in the workplace.

Charismatic Leadership

A charismatic leader is the one that uses their power of personality in order to better lead the team towards its goals. Charismatic leaders will more often than not be extremely enthusiastic and they'll seem like they have limitless energy at their disposal. Their most powerful impact on a team is through motivation, as most of the people that work with charismatic leaders will want to get to their level. A good thing about charismatic leaders is that they can do a great deal in the area of improving company's reputation. A bad thing, though, is that when they leave the company - the company may lose a sense of purpose.

Participative Leadership

This type of leadership is very common these days, as most people finally understood that company is nothing without its employees. Participative leaders always try to include team members as much as possible whenever important decisions are to be made, especially in creative areas. While they'll allow almost anyone to express their belief, in the end, leaders will still have to make the final decision on their own. Participative leadership is great for employee satisfaction, as most of the team members will have a higher job satisfaction if their opinions are valued. A bad thing with participative leadership is, that some projects require speed and quick decision-making, which isn't an area where this type of leadership will shine.

Command and Control Leadership

Leaders that belong to this group are usually more hierarchical than others. Instead of motivating their team-members and lead by example, a commanding leader wants to be seen as an authority figure, one that has a final say regardless of what the team thinks. While these leaders may seem like too rigid, they will also bring a level of disciple that will make fulfilling deadlines much easier. Any team that constantly has to meet the deadlines will find more success with this type of leaders than others. On the other hand, command and control leadership will prevent most of the team members from developing their own leadership skills, but this can be bypassed by sending them to executive coaching courses.

People-Oriented Leadership

Leaders that belong to this category are focused on team members - including organizing, supporting, and developing employees. This type of leadership is extremely good for creating excellent teamwork and significantly improves those teams that are in the creative fields. A people-oriented leader will treat their team members equally which will make them happier overall, and sometimes more productive. The only bad side to this type of leadership is that sometimes projects will suffer since leaders will put personal development higher on the priority list.

Flexible Leadership

Flexible or situational leaders prefer to mix up the approaches we already mentioned, depending on the situation and the project at hand. This type of leadership is probably the best of all since a leader that can sometimes motivate a whole team, but who is also seen as an authority figure, can bring the best results. These leaders are excellent problem solvers, which is why they'll always know how to position themselves and what kind of attitude to show to their team-members. Flexible leaders are the best for those teams whose parameters often change. There's a bad side here as well, as team members working under flexible leaders will have a harder time getting the routine.

Bottom Line

Every business that is looking to grow today is extremely dependent on the people it employs - and every team starts with a good leader. Whether they're charismatic, democratic, or flexible - all of these leaders have their pros and cons and they're best used in some circumstances. A good leader will know how to develop the team and which direction to choose when making important decisions. These five leadership styles are most common, which is why this guide can serve you as a good starting point when determining which type of leader you're after.

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