Leadership Types You Need to Know

22 February 2025

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Through this, leaders can build trust, encourage cooperation, and improve team performance.

What is Meant by Leadership Type?

 

The type of leadership adopted by a leader is usually influenced by their personality, life experience, communication skills, and their way of thinking. Therefore, leaders need to understand their type by considering these factors, and determine the best way for them to be more successful in leading. Leadership style also influences the success of leaders, so they must be able to take responsibility and make decisions.

 

Apart from that, a leader also needs to understand what style is most effective and appropriate to a particular organization or situation. In a Harvard Business Review article, a study entitled “Leadership That Gets Results” by Daniel Coldman examined more than 3,000 middle-level managers to look at certain leadership behaviors and their impact on company profits. The results show that a manager's leadership style is responsible for 30% of a company's profits. In addition, understanding one's leadership style and ability to adapt to changing situations will likely yield additional benefits such as:

 

Leadership type is the way a leader acts and behaves to influence, motivate and guide others.

 

This is a specific method used by leaders to achieve common goals, while remaining focused on the feelings and well-being of employees.

 

Leadership type also determines how they plan and implement plans while taking into account the expectations of the people concerned and the good of their team.

 

There are several styles or types of leadership such as authoritarian or autocratic, participative or democratic, delegative (Laissez-Faire), transformational, and many more.

 

However, you need to know that there is no one and only correct leadership style, and what suits one leader may not suit another.

 

There are different ways to categorize leadership styles, but they all have common factors that depend on the manager's personality, knowledge and experience, the employees being led, and the company's traditions, values, and philosophy.


 

What type of Leadership is Important?

 

The type of leadership adopted by a leader is usually influenced by their personality, life experience, communication skills, and their way of thinking. Therefore, leaders need to understand their type by considering these factors, and determine the best way for them to be more successful in leading. Leadership style also influences the success of leaders, so they must be able to take responsibility and make decisions.

 

Apart from that, a leader also needs to understand what style is most effective and appropriate to a particular organization or situation. In a Harvard Business Review article, a study entitled “Leadership That Gets Results” by Daniel Coldman examined more than 3,000 middle-level managers to look at certain leadership behaviors and their impact on company profits. The results show that a manager's leadership style is responsible for 30% of a company's profits.

 

In addition, understanding one's leadership style and ability to adapt to changing situations will likely yield additional benefits such as:

 

  • Improve communication and cooperation.

 

  • Increase employee engagement.

 

  • Increase team effectiveness.

 

  • Make one's leadership more visible in the organization and gain recognition.


 

What are the Types of Leadership?

 

Based on the previous explanation, it can be understood that the type of leadership plays an important role in a company's success. For this reason, you need to know which type of leadership is most appropriate for the company.

 

Here are some of them:

 

  • Democratic Leadership

 

Democratic leadership or also known as participative leadership is when the leader makes decisions based on input from each team member.

Even though in the end the leader will make the decision, every employee still has the same right to speak regarding company projects.

 

Characteristic Features : 

 

  • Inclusive or including everyone

 

  • Cooperate

 

  • Communicate well

 

  • Empowering

 

  • Supportive and empathetic

 

  • Build trust

 

  • Emotional understanding


 

Excess

 

The democratic leadership style is one of the most effective because it encourages everyone to participate in all processes, share opinions, and know that their opinions will be heard.

In addition, team members who feel they have space to participate can also increase employee empowerment, motivation and participation.

 

Challenge

 

Democratic leadership has its own challenges in reaching agreement, which can usually take time, resources and quite intense communication.

This can also impact decision making as some team members may not have the right skills to make important decisions.


 

  • Authoritarian Leadership

 

Authoritarian, coercive, or command leadership is a virtue of democratic leadership. In this leadership style, leaders make decisions without seeking the opinion of anyone reporting to them.

 

Characteristic features

 

  • Centralized decision making

 

  • Direct communication from top to bottom

 

  • Minimal delegation

 

  • Team members have limited autonomy

 

  • Emphasis on hierarchy and status

 

  • Less accepting of input or criticism

 

This type is very useful when a business needs to control certain situations, not as the only type of leadership. For example, this leadership can be effective in emergency or critical situations where quick and decisive action is required.

This style is most useful when a business needs to control a particular situation, rather than as the only leadership style. For example, it can be effective in emergency or crisis situations where quick and decisive action is required.

 

Excess

 

This leadership style is very effective when the company finds it difficult to make decisions.

Leaders can be responsible for making decisions and providing clear direction to employees, and this can also overcome a lack of experience in a team.



 

Challenge

 

Most organizations that adopt an authoritarian culture are prone to losing employees, which can significantly reduce morale and creative problem-solving abilities.

A bad example of this leadership can occur when a manager changes an employee's working hours without discussing it with anyone first.

Other challenges of authoritarian leaders also include intimidation, micromanagement, and excessive dependence on one leader.


 

  • Laissez-Faire Leadership

 

Laissez-Faire leadership is when a leader gives a lot of freedom to his team. They don't intervene too much, unless it's really necessary.

 

Characteristic Features

 

  • Provide a little guidance and direction.

 

  • Limited interference and control.

 

  • Teams have high autonomy and freedom.

 

  • Encourage empowerment and trust.



 

Excess

 

This type of leadership is suitable for business because the leader gives employees responsibility for their work. This encourages employees to do their work well and optimally.

In addition, leaders with a Laissez-Faire style also create a relaxed culture, making it suitable for creative businesses, such as advertising or product design companies.

 

Challenge

 

Although giving employees freedom is a good thing, it is also feared that it can cause problems, such as limiting team development, especially for older or less experienced employees who may need more guidance.

In addition, roles and responsibilities within the team also become unclear, and this can cause people to work separately rather than working as a complete team. This style also allows companies to miss important growth and learning opportunities.

Therefore, it is important for leaders to stay involved and keep things under control.

 

Opposition

 

While giving employees freedom is a good thing, it is also feared that it can cause problems, such as limiting team development, especially for older or less experienced employees who may need more guidance.

In addition, roles and responsibilities within the team also become unclear, and this can cause people to work separately rather than working as a complete team. This style also allows companies to miss important growth and learning opportunities.

Therefore, it is important for leaders to stay involved and keep things under control.


 

  • Strategic Leadership

 

A strategic leader is a person who is in the middle, between running the company's core operations and looking for growth opportunities. They must have insight, sensitivity to competition, and the ability to adapt.

So, apart from carrying out executive interests, as a strategic leader you also need to ensure stable working conditions for everyone.

Additionally, strategic leaders aim to guide the organization towards long-term goals.

With this leadership style, you can create an organization that is forward-thinking, agile and adaptable so it can thrive in an ever-changing business environment.

 

Characteristic Features

 

  • Clear vision.

 

  • Competitive awareness.

 

  • Adaptability.

 

  • Forward thinking.

 

  • Strategy development and implementation.

 

  • Strategic thinking.

 

Excess

 

Strategic leaders link growth plans and strategies to how they manage their teams. They are always developing and implementing strategies, and considering future growth.

This approach supports business goals, such as increased productivity, collaboration, and transparency.

 

Challenge

 

Leaders who work strategically may take on too much responsibility and risk thinking too far into the future, thereby ignoring crucial current issues.

Therefore, it is important to learn how to delegate tasks with this leadership style and share responsibility for decision making. Compromise, communication skills, and consistent communication are also needed.



 

  • Transformational Leadership

 

A transformational leader is a type of leader who earns the trust of his team, encourages team members, and leads employees towards achieving company goals.

They always try to improve the way the company works and motivate employees to grow and develop skills.

The goal of this leadership is to create a lasting positive impact, elevate their teams to reach their full potential and drive organizational success.


 

Characteristic Features

 

  • Ability to control ego.

 

  • Can motivate someone.

 

  • Support innovation.

 

  • Adaptable.

 

  • Positive and responsive attitude.

 

  • High loyalty.

 

Excess

 

This type of leadership supports employees to reach their maximum potential. When you start working with this kind of leader, all employees will probably be given a list of goals to achieve and a deadline for achieving them.


 

Challenge

 

Transformational leaders may focus too much on company goals and not enough attention to the needs of individuals on the team.

This can lead to employee burnout, so it's important to work with your team to update standards and find the right balance.


 

  • Coaching Leadership

 

Coaching leadership focuses on recognizing and maintaining the individual strengths of each team member, as well as developing strategies that enable the team to work together.

This style is similar to strategic and democratic leadership, but places more emphasis on individual employee success.

Coaching style leaders also focus on building trust and strong relationships with their team members, by creating an environment where open communication and a sense of security encourage individuals to share ideas, receive feedback, and work together to achieve common goals.


 

Characteristic Features

 

  • Give new tasks to try

 

  • Provide guidance and direction

 

  • Meet to discuss constructive feedback



 

Excess

 

This leadership style can motivate employees because they feel supported in the team. Leaders also recognize that each employee is unique and can build diverse and engaging teams where each employee is able to provide something different.

These leaders also focus on high performance, with employees who are able to communicate well and combine a variety of unique skills to get the job done.

They also encourage team members to seek new challenges, learn from experiences, and continually improve skills and knowledge.

 

Challenge

 

Developing employees with a coaching style requires quite a lot of time, and may not be effective for all employees.


 

  • Bureaucratic Leadership

 

Bureaucratic leadership follows existing rules. They may listen to suggestions from employees, but if they don't fit with company policy or existing ways of working, they can reject them.

 

Characteristic Features

 

  • Centralized decision making.

 

  • Adhere to rules and procedures.

 

  • Clear chain of command.

 

  • Employees have little freedom.

 

Excess

 

This leadership style is suitable for companies that are larger, have been around for a long time, or follow a strong tradition. They want to maintain their current way of working because existing strategies have proven successful.

The advantage of this leadership style is the reduced risk of discrimination or nepotism. Everyone knows what is expected of them, so they feel secure in their jobs.

 

Challenge

 

Employees may feel they have less freedom in their work, and this approach can stifle innovation. Therefore, it is not suitable for companies looking to achieve ambitious goals or rapid growth.

 

  • Visionary Leadership

 

Visionary leadership focuses on future and long-term goals. This leadership aims to inspire and guide their team towards achieving a shared vision.


 

Characteristic Features

 

  • Responsible.

 

  • Optimistic.

 

  • Persistent.

 

  • Dare to take risks.

 

  • Firm.

 

  • Communicative.

 

  • Open-minded.

 

Excess

 

This type of leader encourages cooperation, emotional intelligence, and teamwork. They also foster a culture of innovation and change, encouraging individuals to embrace new ideas and approaches.

 

Challenge

 

Visionary leaders can overlook day-to-day problems to focus on long-term ideas, which can bypass obstacles that could lead to problems in the future.

Another common challenge is excessive focus on one goal, which can influence consideration of other ideas that may be just as valuable to the business.


 

Conclusion

 

Based on the article above, it can be understood that it is important for you to know which type of leadership is most appropriate for your company, in order to create a productive work environment, build trust, and improve team performance. However, regardless of the type of leadership, you also need to consider convenience for employees.

 

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