The topic of leadership styles may sound like a dull and obscure subject. However, understanding the various styles and developing the styles that best fit them can make a significant difference for leaders and organizations. You don’t believe me? Hopefully, you will consider the research. A Harvard Business Review study of over 3,000 middle-level managers shows that a manager’s leadership style can affect up to 30% of a company’s bottom-line profitability. That’s very significant. Simply said, how a leader manages their team can substantially impact the company’s financial performance. Leading is not just about profit and loss, yet it is vital to recognize that leadership styles can contribute to both. 

Nevertheless, the overwhelmingly convincing impact of leadership styles underscores the importance of understanding different management approaches. While democratic leadership is the most popular, with 46.9% of leaders choosing this style in a 2022 survey, it’s important to note that no single approach is universally practical. Successful leaders like Steve Jobs, who used an autocratic style during Apple’s crisis, and Richard Branson, who employs a delegative style in his creative ventures, can adapt their methods based on specific situations and company dynamics. This adaptability empowers leaders to be flexible and responsive to the needs of their team and organization.

This blog post will walk you through the major leadership styles and help you find your natural approach. You’ll learn to identify your inherent tendencies and develop an authentic leadership style that works for you and your team, whether you’re a seasoned leader or just starting your leadership journey.

The 6 Major Leadership Styles Explained

Leaders naturally develop unique ways to guide their teams. Knowing six major leadership styles helps you find your default approach and adapt when needed.

Autocratic: Command and control approach

Autocratic leaders hold all decision-making power. They choose paths independently and rarely seek input from the team. This style is most effective during crises that require quick decisions, in highly regulated environments, or when working with new teams that need clear direction. Studies show that this approach typically yields lower productivity. Team stability suffers when members leave.

Democratic: Collaborative decision-making

Democratic or participative leaders actively include their team members in organizational decisions. These leaders value open communication, team collaboration, and diverse perspectives. Research indicates that democratic leadership enhances employees’ psychological well-being and fosters more substantial organizational commitment. Employees who help create policies show more substantial buy-in and resist changes less.

Transformational: Inspiring positive change

Transformational leaders push their teams beyond essential rewards and exchanges. Their energy, enthusiasm, and passion help every team member succeed. Four key elements shape this style: intellectual stimulation, individualized consideration, inspirational motivation, and idealized influence. Teams under transformational leaders achieve success and stay loyal, with low turnover rates.

Servant: Putting team needs first

Servant leaders prioritize their team’s growth and well-being over their own goals. They care deeply about their employees’ personal and professional development. These leaders prioritize employee needs over company targets. This approach creates more skilled, talented, and motivated team members. Employees feel valued and supported, which boosts job satisfaction and reduces turnover.

Transactional: Exchange-based leadership

Transactional leadership uses rewards and punishments to achieve results. This approach is well-suited for structured environments with transparent processes and defined roles. Direct, practical, and reactive describes these leaders who focus on short-term goals rather than breakthroughs. The style quickly achieves immediate objectives but lacks creativity and long-term planning.

Laissez-faire: Hands-off management

Delegative or laissez-faire leaders allow their teams to make decisions with light oversight. They provide training and support while letting employees work independently. Success with this style demands trust in team members’ abilities. Highly skilled experts who need minimal supervision thrive under this approach. Advertising, technology, and creative fields welcome this style because micromanagement can limit breakthroughs.

Identifying Your Natural Leadership Tendencies

Self-awareness is a key factor in understanding your natural leadership tendencies. Your leadership style emerges from a unique blend of internal and external factors specific to you. This makes introspection and self-reflection crucial in leadership development. By encouraging self-reflection, this piece aims to help you gain a deeper understanding of your leadership style and its impact on your team.

Personality traits that shape leadership

Your personality significantly influences your leadership approach. Studies reveal that Extraversion emerged as the most consistent correlate of leadership effectiveness. Leaders with high levels of conscientiousness and openness to new experiences often achieve tremendous success. Research indicates that leader characteristics, including the ‘Big Five’ personality traits, account for 22 percent of the variance in leader effectiveness.

Each leader has a distinct personality profile with unique strengths. For example, people who score high in extraversion and low in agreeableness tend to excel at autocratic leadership. Individuals with high levels of agreeableness and openness tend to thrive in democratic environments.

Past experiences that influence your style

Life experiences mold your leadership tendencies. Research indicates that most leadership development originates from on-the-job experience rather than formal coursework. Great leaders learn from challenges and apply these lessons to future situations.

Leaders often revert to childhood-formed tendencies under pressure. Your past explains your instinctive responses. Non-work experiences strengthen your leadership capabilities – from family relationships to volunteer roles and personal hardships.

Values and beliefs that guide your approach

Personal values serve as your invisible compass, directly relating to your leadership effectiveness. Clear values help leaders make decisions, share their vision, and motivate others quickly.

You can discover your guiding values by asking yourself: “What values direct my personal life?” and “How do I typically react when confronted with change?”. The most effective leadership values emerge when your values align with those of your organization.

Your authentic leadership style emerges from the connection between your personality, experiences, and values. This understanding helps you find areas where you might need to develop complementary approaches.

Simple Assessment Methods to Find Your Style

You don’t need complex assessments to find your natural leadership style. Simple methods can help you determine which leadership approach best suits your personality.

Self-reflection questions

While research and other processes help tremendously, your leadership style emerges from honest self-evaluation as much as it does from any other factor. I’d like to point out that a thorough review of your past leadership experiences shows your natural leadership abilities. Here are some questions you can ask yourself that should make you think and can help guide you through the process:

1. 1. Do I like making decisions on my own or with others?

1. 1. Which leadership habits come naturally to me? Which ones don’t?

1. 1. What kind of feeling do I want my team to have at work?

1. 1. Does my leadership respect others as people?

1. 1. How does my personality show in my leadership?

Writing down or mulling over these thoughts during a nature walk can give you fresh insights. This kind of reflection works best when you look at your wins and struggles as a leader.

Feedback from colleagues and team members

The way you perceive your leadership may not align with how others perceive it. Getting feedback helps close this gap. 

Here’s what you can try:

Anonymous feedback provides honest insights into how well you lead. Ask specific questions about communicating, making decisions, and handling challenging situations.

Team metrics show the actual results of your leadership. Please take a look at how workplace mood, productivity, and relationships evolve under your guidance.

Opening yourself to constructive feedback takes courage, and it can be challenging to hear honest responses from team members, especially people you supervise. However, direct questions show you are open to input and help people feel safe sharing honest thoughts. Most importantly, the feedback will help you grow. Listen carefully without jumping to respond.

Leadership style quizzes and tools

Standard assessments give you straightforward ways to spot your leadership approach:

The Leadership Style Inventory (LSI) and MindTools’ What’s Your Leadership Style? The quiz builds on Kurt Lewin’s Leadership Style Framework to show your natural tendencies.

Personality-based assessments, such as the MBTI and Gallup’s CliftonStrengths, reveal core traits that shape your leadership style.

360-degree feedback tools provide a comprehensive view of your effectiveness from your bosses, peers, and team members.

Once you’ve completed these assessments, try different styles to determine what works best for you and your team.

Developing Your Authentic Leadership Approach

After identifying your natural tendencies, your next step involves developing an authentic leadership approach that aligns with your true self and enables you to lead effectively.

Building on your natural strengths

Authentic leaders maximize their inherent capabilities instead of obsessing over weaknesses. Research from Stanford’s Graduate School of Business Advisory Council indicates that self-awareness is the most critical capability for leaders to develop. You don’t need to fix every weakness – build complementary skills around your strengths instead. These skills work together and are reinforced, as with diet and exercise.

Building on strengths yields better results than fixing weaknesses. Leadership development should tap into your interests and passions. It becomes part of your daily work rather than feeling like an extra task.

Addressing potential blind spots

Even the best leaders have blind spots—areas that others see clearly but remain hidden. Studies reveal a surprising 80% gap between what leaders believe they need to improve and what their teams identify as weaknesses.

The first step in handling blind spots is to acknowledge that they exist. These strategies can help:

• • Create a feedback culture that welcomes transparency and candor

• • Trust your gut when you sense issues

• • Reflect on what bothers you about others

Finding a “swim buddy” also helps – someone who keeps you accountable, spots your blind areas, and suggests practical improvements.

Creating your personal leadership philosophy

A personal leadership philosophy guides your decisions and actions throughout your career. This written statement communicates your team’s values, expectations, and vision, promoting a shared sense of purpose.

Start crafting your philosophy by identifying the core values that matter most to you. Think over your preferred style among various leadership approaches. Decide which behaviors you won’t accept, then define your ultimate leadership goal – how you want to affect teams, organizations, and the world.

Please note that your leadership philosophy evolves with you. The process offers valuable chances to reflect and develop as an authentic leader.

Conclusion

A leader’s style shapes team dynamics and drives organizational success. Each of the six leadership approaches has distinct advantages. Good leaders adapt their style to suit specific situations and their team’s needs.

Authentic leadership begins when you understand your natural tendencies. Your personality traits, life experiences, and core values shape these tendencies. Don’t force yourself into a predetermined mold. Instead, develop your inherent strengths while staying mindful of potential blind spots.

Leadership development is an ongoing process of growth. Ready to boost your leadership skills and make a lasting difference? Please feel free to book a free consultation with our expert team to discover your unique leadership style.

Your authentic leadership style will emerge as you consistently reflect on yourself. Honest feedback and thoughtful practice are also helpful. Success happens when your natural style aligns with your team’s needs while staying true to your values and vision.

FAQs

Q1. What are the main types of leadership styles? There are six major leadership styles: autocratic, democratic, transformational, servant, transactional, and laissez-faire. Each style has its unique characteristics and is best suited for different situations and team dynamics.

Q2. How can I identify my natural leadership style? You can identify your natural leadership style through self-reflection, analyzing your personality traits, examining past experiences, and considering your core values. Additionally, seeking feedback from colleagues and taking leadership style assessments can provide valuable insights.

Q3. Is there a leadership style that works for everyone? No, there isn’t a one-size-fits-all leadership style. Effective leaders often adjust their approach to suit various circumstances and organizational dynamics. The most suitable style depends on the team’s needs, the organization’s culture, and the specific situation.

Q4. How can I develop my leadership skills? To develop your leadership skills, focus on building your natural strengths, addressing potential blind spots, and creating a personal leadership philosophy. Continuous self-reflection, seeking feedback, and experimenting with various approaches can help you grow as a leader.

Q5. Can leadership style impact an organization’s success? Yes, leadership style can have a significant impact on an organization’s success. Studies have shown that a manager’s leadership style can influence up to 30% of a company’s bottom-line profitability. The right leadership approach can improve team productivity, employee satisfaction, and overall organizational performance.