The leadership styles and frameworks every manager should know 

Leadership plays a critical role in shaping team dynamics and driving organisational success. Leaders create the foundation for workplace culture, directly impacting employee engagement, productivity and collaboration. Different leadership styles influence how teams function, make decisions and work towards their goals. However, successful leaders are not defined by a single approach, they continuously adapt their leadership skills to meet the unique needs of their teams and challenges. In this blog, we’ll explore the key traits of some of the most common leadership styles, the benefits they offer and the situations where they work best. This article highlights how different leadership qualities can influence team dynamics and contribute to the success of an organisation. 

Transactional leadership 

Key characteristics 

Transactional leadership is a task-oriented, performance-focused leadership style. The relationship between the leader and the follower is based on exchange. The follower agrees to perform a certain task or take a particular action in return for a reward from the leader. This is often referred to as ‘contingent reward’ behaviour.  

Transactional leadership has a structured hierarchy with a clear focus on completing tasks and meeting set goals. This style is often viewed as a utilitarian ‘reward and punishment’ model that prioritises achieving set objectives over building relationships. 

Benefits 

Transactional leadership is effective in environments where tasks need to be completed quickly and efficiently. Leaders with a transactional approach are beneficial during times of crisis, crises due to their strong control and quick. Employees understand exactly what is expected of them and what they will receive in return for meeting expectations, leading to consistent performance. 

Use case 

This leadership style is most suited to environments where tasks are routine and require strict adherence to processes, such as manufacturing. It is also useful during crises where there is a need for decisive, top-down leadership. 

Transformational leadership 

Key characteristics 

Transformational Leadership is a visionary, change-focused leadership style. Both transactional and transformational approaches focus on motivating followers to achieve success. While transactional leadership prioritises immediate tasks and outcomes, transformational leadership emphasises long-term vision and development. Leaders may switch between transformational and transactional behaviours depending on the situation.  

Transformational leaders promote creativity by challenging their followers to think critically and take risks. They offer personal attention and intellectual stimulation to inspire followers to push their boundaries. 

Benefits 

Transformational leadership builds organisations that are adaptable and can sustain success over time. By inspiring followers to go beyond their basic responsibilities and providing opportunities for personal growth, this leadership style creates highly engaged and motivated teams. In addition, the encouragement of creative thinking leads to new ideas and innovations.  

Use case 

Transformational leadership is ideal for organisations undergoing significant changes, such as those in tech or research sectors, where innovation is critical to success. It is also useful in companies aiming to build a motivated and resilient workforce with a focus on long-term growth. 

Servant leadership 

Key characteristics 

A servant leader’s primary role is to serve the needs of others, prioritising their personal growth and well-being above all else. These leaders work to empower, support and uplift their employees. Instead of exerting control or authority, servant leaders provide their teams with the resources, encouragement and freedom they need to succeed. The leader is successful when their presence becomes less noticeable as their followers grow and develop. 

Benefits 

Servant leaders use their leadership skills to create a collaborative and supportive culture, which can increase trust and teamwork within the workplace. Investing in long-term personal development helps employees feel valued and supported. This leads to high engagement and loyalty while building a sustainable, growth-oriented organisation. 

Use case 

Servant leadership is particularly effective in environments that value collaboration, employee empowerment or personal growth. It is well-suited for fields where the focus is on service and supporting others such as education, healthcare and non-profits. This approach is also effective in companies looking to build people-centred cultures with a focus on long-term development. 

Authentic leadership 

Key characteristics 

Authentic leadership is a values-driven leadership style. Both authentic and servant leadership are centred around the well-being and development of followers, with a focus on trust, transparency and ethical behaviour. While servant leadership prioritises the needs of followers, authentic leadership focuses on the leader’s integrity and values.  

Authentic leaders remain visible throughout their leadership with authenticity and consistency guiding their actions. They have a deep self-awareness of their values, strengths and weaknesses, allowing them to remain true to themselves and their principles in all leadership situations. They build strong relationships and communicate openly with their followers. 

Benefits 

Authentic leadership builds trust and credibility with followers, as employees can see that their leader is genuine. This style of leadership helps create a strong organisational culture built on mutual respect. Employees are more likely to be engaged with the organisation when they perceive their leader to be authentic and consistent in their actions. 

Use case 

Authentic leadership is ideal for organisations where ethical behaviour, transparency, and strong values are essential. This includes industries such as finance, healthcare and government. Additionally, authentic leadership is well-suited for companies aiming to develop strong, value-based cultures with a focus on long-term success. 

Autocratic leadership 

Key characteristics 

Autocratic Leadership is defined by centralised control, where the lead holds all decision-making authority. The leader provides their followers with specific instructions without input from others, expecting strict adherence to rules and guidelines. Autocratic leaders maintain tight control, closely supervising performance and progress. This task-oriented leadership style is primarily focused on efficient outcomes, prioritising task completion over relationships. 

Benefits 

The clarity of instruction from a single authority under autocratic leadership reduces confusion about team members’ roles and the leader’s expectations. This leadership style results in quick decision making because processes are often faster, which can be beneficial in situations requiring urgent action. This makes it especially effective in crisis situations as it provides a clear sense of direction and immediate decisions, which can help stabilise operations. 

Use case 

Autocratic leadership skills are most effective in environments where strict control and quick decision-making are essential. It is commonly used in military settings, during crises or in industries such as manufacturing or construction, where safety and compliance are critical. 

Democratic leadership 

Key characteristics 

Democratic leadership is a participatory leadership style. Unlike autocratic leaders who make decisions alone, democratic leaders actively involve their team in the decision-making process, shifting the focus from control to collaboration. Democratic leadership also values the input and opinions of employees, encouraging shared power and participation.  

Democratic leaders create an open communication environment where team members feel comfortable sharing ideas, collaborating on solutions and voicing concerns. There is a balanced focus on tasks and relationships, ensuring goals are achieved goals while maintaining positive relationships. This approach values both productivity and employee satisfaction. In a 2022 survey by Niagara Institute, democratic leadership was the most popular style among respondents (46.9%) 

Benefits 

Democratic leadership qualities promote inclusion, empowerment and job satisfaction. This leadership style boosts employee morale and engagement by including them in decision-making. The open flow of ideas and collaboration encourages creativity and more innovative solutions to problems. Teams also tend to develop stronger bonds and work more cohesively due to shared responsibilities. 

Use Case 

Democratic leadership is highly effective in environments that thrive on innovation, collaboration, and employee engagement. This includes creative industries, technology companies or educational institutions. It is also well-suited to teams with experienced, knowledgeable members who can contribute to decision-making. 

Situational leadership 

Key characteristics 

Situational leaders adapt to team needs with flexibility based on follower development. They evaluate the skill level and motivation of their followers and adjust their approach accordingly. 

Leaders use a combination of task-oriented and relationship-oriented behaviours to guide followers, providing different levels of support and direction based on the follower’s development. The four leadership styles are known as directing (high direction, low support), coaching (high direction, high support), supporting (low direction, high support) and delegating (low direction, low support). 

Benefits 

The versatility of situational leadership in navigating different leadership scenarios makes it useful in a wide range of settings. By aligning leadership style with the developmental stages of followers, it strengthens both individual and team performance. Leaders can continue to provide the appropriate level of guidance and support as team members grow, building their competence and confidence. 

Use case 

Situational leadership is highly effective in dynamic environments where teams consist of members at varying stages of development. It is particularly well-suited for organisations with project-based teams or roles where employees are rapidly developing new skills such as startups or tech companies. 

Adaptive leadership 

Key Characteristics 

Adaptive leadership is another flexible leadership approach that adjusts to changing circumstances. This leadership style is broader than situational leadership, focusing on responding to the complexities of the external environment rather than the internal needs of the team. Both approaches require leaders to evaluate circumstances and adjust their behaviour to fit. 

Adaptive leadership focuses on long-term adaptation and thriving through complexity and uncertainty. These leaders observing situations closely and carefully to understand challenges before implementing solutions. Adaptive leaders share authority and engage employees in solving tasks, rather than simply guiding their performance. They encourage growth and innovation by pushing followers to develop creative solutions to complex problems. 

Benefits 

Adaptive leadership improves organisational resilience enhancing long-term sustainability. By encouraging distributed leadership and a problem-solving mindset, adaptive leadership promotes innovation. This style equips leaders and teams to deal with complex or evolving challenges that don’t have clear solutions. 

Use case 

Adaptive leadership is highly effective in industries undergoing rapid change or dealing with complex problems, such as healthcare or technology. It is particularly useful for organisations that need to transform in response to external factors, such as disruptive technologies, regulatory changes or market shifts. 

Why is understanding different leadership styles important? 

Leadership styles are a strong foundation for leadership study and practice. Understanding different leadership styles isn’t only important for those with executive titles or management roles. At some point in your career, you will likely lead in some way. This can include directing a meeting, managing a project, supervising a team or running an entire department. 

Good leadership benefits employees and companies. Data from McKinsey & Company shows, when employees are intrinsically motivated, they are 32% more committed and 46% more satisfied with their job. There are also benefits for the leaders themselves. According to a 2022 article in the Leadership & Organization Development Journal, employees who underwent identity-based leadership development training reported significant increases in clarity, sense of purpose and personal growth about after the programs ended. 

There’s no single “best” leadership style. Most leaders align with a particular leadership style based on factors such as their experience and personality, as well as the needs of their company and its organisational culture. This becomes their instinctive leadership style. 

However, while it’s valuable to master one leadership style, understanding different styles is fundamental to becoming an effective leader. A narrow range leadership skills limits the potential to excel, especially in a constantly evolving work landscape. By tailoring their approach based on the needs of their team and the specific challenges they face, leaders can improve communication, motivation and productivity. Leaders who are aware of different styles can reflect on their own behaviour and grow professionally by adapting to new challenges and feedback.  

How to decide which leadership style is best for you 

Knowing your ideal leadership style helps you offer better guidance to employees, while giving you a clearer understanding of your thought process, decision making and strategic options for business decisions. It also impacts how your direct reports see you and how your team works together to achieve goals. 

Some leaders can already define their current leadership style, but it is not always that simple. Finding the leadership qualities that work best for you is a personal journey, and there’s no one-size-fits-all approach. As you begin this process, focus on self-awareness and adaptability, and consider taking notes to support your progress. 

Start by reflecting on your core values, strengths and the qualities you admire in leaders you respect. Next, assess your work environment and team dynamics. The context in which you lead often influences what style works best. You may need to adjust your approach based on your organismal culture or the specific needs of your team. Additionally, seek feedback from peers and team members to gain insights into how your leadership is perceived. Experimenting with different styles in different situations can also help you discover what feels authentic and effective. 

By familiarising yourself with the leadership styles outlined in this article, you might recognise certain areas to improve upon. You can also identify other ways to lead that might better serve your current goals and understand how to work with managers who follow a different style than your own. 

Interested in learning more about leadership? 

Discover what it takes to become an effective and inspiring leader with our range of leadership blogs. These articles cover topics such as leadership styles, leadership qualities, leadership biases, team management, decision-making and communication. 

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Leadership is the first subject of our online MBA, and leadership learning is also present throughout our other subjects, as our students consider a leader’s perspective within the different areas and functions of business. 96% of AIB alumni have applied the MBA in their job or business. Find out more: AIB MBA Leadership Subject