Leadership has a tremendous impact on business. The way you lead people is as important as the quality of your products or services.

Leadership can be defined as a way to lead others. But it is so much more than that. A true leader inspires people, recognizes their diversity and potential, and shows them how they can develop their skills.

As leadership has always been a hot topic, there have been a lot of different leadership types developing over the years.

To help you understand which type of leadership suits you best, we’ve decided to compile a list of seven leadership types you should know about:

1. Autocratic

This is the first type of leadership that was established, and it was very successful in events where people needed one person to be their leader and guide them. The modern form of this leadership type is centered on the boss instead of the king or warrior.

The leader has the highest level of authority and responsibility. In autocratic leadership, leaders will make decisions without having to consult anybody.

After the decision has been made, they will communicate it to others to implement them. This type of leadership usually provides little or no flexibility for the employees.

2. Democratic

This leadership style allows team members to be involved in the decision-making process. Democratic leadership is centered on the contributions of others.

A democratic leader will hold the final responsibility, but they will also delegate authority to the employees who will continue working on the projects.

With democratic leadership, communication is going both upward and downward. This helps with employees’ productivity and motivation and brings better business results.

3. Cross-cultural

This type of leadership is becoming increasingly popular due to several recent trends e.g. freelancing and remote work. It usually exists in companies where there are people from various cultures.

As there are many multinational companies, cross-cultural leadership is vital for your employees to feel valued and included. This type of leader can be efficient in different work environments, and they will successfully communicate with all employees.

The best way to achieve a successful cross-cultural environment is by sharing the same values and interests. For instance, if your several employees come from a culture where ecological solutions are so important that they are practically part of their identity, show that you appreciate it.

You can do so by discussing current issues in society or by merely rewarding these employees for their performance. This way, you will show them you have something in common, and you understand what is important to them.

4. Team

Team leadership is based on building and maintaining team spirit in your company. Everyone is working towards the same goal for the future of the company.

Related:  Overcoming Resistance to Corporate Culture Changes

The biggest challenge for a team leader is to make it work because being a team leader is not as easy as it sounds. You can’t force the feeling of a united team that shares the same values.

It will take a while until you build your own team. But once you succeed, this team can achieve much more than employees in other companies.

5. Strategic

When a company has a strategic leader, that person is the head of an entire organization. They are not limited to those at the top of the business organization. Strategic leadership is usually implemented by businesses that want to create a high-performance organization for a wider audience.

A strategic leader will always fill the gap between the necessity for a new possibility and the necessity for practicality with its own prescriptive set of habits.

In other words, this type of leader will deliver what its organization needs at that particular time and they will do it successfully. After all, every successful leader is successful in strategic thinking.

6. Transformational

Unlike other leadership types mentioned above, transformational leadership is focused on initiating change in companies, employees and itself. This type of leader will motivate others to do what they have the potential for and will help them achieve better results.

A transformational leader sets challenges in front of their team and expects its employees to solve them successfully, with the help of their leader.

As this type of leaders invests in their employees, it is highly popular with people who want to build their careers. Who wouldn’t want to have a boss that empowers you and believes in you?

7. Transactional

This type of leadership has one goal regardless of where it’s implemented. And that is to maintain the status quo. Transactional leadership is based on the exchange process where followers will be rewarded for carrying out the orders of their leaders.

It might sound basic, but it takes a lot of determination for transactional leadership to succeed. From being clear and focused on expectations you give to your team to providing quality feedback during and after projects, a transactional leader needs to be involved in all of the processes.

Conclusion

Of course, there are plenty of other types of leadership, and not every one of them will be perfect for you.

That’s why it’s essential to find the one that suits your personality, business needs, and your team as well.

Which Leadership Style Works for You?

If you have ideas you feel like sharing that might be helpful to readers, share them in the comments section below. Thanks!

Would you like to contribute a post?

Melissa Burns
Melissa Burns is an independent journalist and business consultant. Business innovations, technology, and marketing are central topics of her articles. She started writing with a single goal of sharing her expertise with other people. Melissa also provides workshops for start-ups and small businesses.
>