The Three Types of Leadership Styles In Business – Which One is Right for You?

Every organization’s success is determined by the leadership. Leadership is key to employee motivation as well as profitability. Highly-engaged employees can generate 21% better revenue. Leadership is key to employee engagement. This includes how they manage teams and individuals. Each successful leader like Jason Daniel Hare has their own style, goals and business culture. They can choose from one of three leadership styles: democratic, autocratic, or laissez-faire.

Let’s take a moment to think about how you approach leadership. Are you more inclined to give commands or nurture and guide your team? Is it fair for others to decide the direction of your team and organization? Or, do you give the goal and expect your team members to follow it? Being aware of your own leadership style is the first step towards determining your goals and desires.

  1. The leader in autocratic business

An autocratic leader recognizes the importance of authority. Autocratic leaders won’t allow the whole group to participate in the decision making process. Instead, they prefer to remain in control of the leadership. They expect people who are under their control to obey them.

Advantages of a business leader who is autocratic

An autocratic leader offers a simplified work environment that enhances productivity and efficiency. They establish clear deadlines and provide clear expectations. This is great in times when there are last-minute decisions or crisis situations. This leadership style makes it easier to communicate clearly and avoids miscommunications.

The downsides of an autocratic business leader

They have often limited perspectives. Their limited perspective means that they will not listen to the opinions and suggestions of others. People who follow this type of leadership often resent their manager. They feel like they aren’t valued because there isn’t enough recognition of their contributions. They are also more likely micromanage their staff. An autocratic leader is more likely to be at the center for low employee morale, and high turnover.

When to use this style

An autocratic style of leadership is best used in times of crisis where a leader is most needed. It is important to have someone who can make tough decisions and take control quickly to minimize damage. A strong and decisive leader is appreciated by teams in times of emergency. In situations where team correction is needed, an autocratic leader may be of benefit. It’s generally a good idea for people to switch styles after the crisis is over.

  • The democratic business leader
  • A leader that is democratic encourages team members to freely exchange ideas. The leader is a facilitator and spokesperson for all members. Democratic leaders count on everyone participating in the group. They highlight the unique contributions and expertise of each member. Each team member has the right to share in the leadership responsibilities.

    The benefits of a democratic leader in business

    Democratic leadership offers the benefit of open discussion among the group, which allows for the sharing of ideas and solutions. Democratic leadership generally leads to greater team unity. This environment can make employees feel valued, accomplished and essential to the organization’s success. The common office politics of gossiping, manipulation, and cliques are less prevalent. This leads to a lower level of employee turnover and a better working environment. 63% of employees are recognized for their efforts are more likely not to seek employment.

    The disadvantages of a democratic leader in business

    Debating can become a luxury under democratic leadership. If decisions need be made quickly, a democratic group may struggle to adapt to stress and work under pressure. Democratic leadership can cause confusion about the roles and responsibilities of team members and make it difficult to identify employees who aren’t performing up to their potential.

    When is it appropriate to use this style

    This is the most efficient way to manage day-today work, as it allows all members of the group to make decisions. This gives the team a sense of ownership over projects and deliverables. This style Jason Daniel Hare is preferred by many business leaders, however it can be less effective when times are difficult.

  • The laissez faire business leader
  • Laissez-faire leaders can be described as the hands-off type. While they may give direction and assign tasks to employees, they tend not to be involved in their day-today activities. Employees choose the best way to fulfill their responsibilities. Laissez Faire leaders place a lot trust in the individual. They trust the individual to be self-motivated, focused, on-task and accountable. These leaders are available to give direction if needed. Laissez-faire leaders are able to let everyone in their team succeed or fail based upon their own capabilities.