Leadership has different types depending on different characteristics, with their pros and cons. Let’s look at some of the most recognised examples and the main distinguishing features of the types of leadership in the business world.
Participative leadership
This type of leadership, also known as democratic leadership, encourages collaboration and active participation from people working in companies when it comes to making decisions.
Although its virtues include improved motivation and creativity, it is true that from an operational perspective, it can slow down decision-making and processes.
This type of leadership does not necessarily mean that it is not the people in leadership positions who ultimately make the decisions, although the advantages of involving the workforce or the possible development of new skills can be added to the fact that it promotes and encourages teamwork.
Autocratic leadership
Autocratic or authoritarian leadership could be conceived as the opposite of the above.
In this case, it is a form of leadership in which those in positions of authority make decisions directly.
It offers greater agility and speed, which can be particularly important in crisis situations.
However, by reducing team participation, it can lead to lower levels of motivation or poor cohesion, all of which can create an unfavourable working environment.
Laissez-faire leadership
Derived from the French term laissez-faire, this type of leadership advocates minimal intervention by leaders, giving employees a high degree of autonomy.
It can be useful in well-established, autonomous and experienced teams, although it can falter without proper management, creating—or at least giving the perception of—a lack of direction.
Transformational leadership
Through the promotion of personal development, innovation and commitment, this type of leadership is suited to the needs of organisations seeking to adapt and grow.
With leaders inspiring and motivating others to bring about positive change, the downside is that it may not be the most appropriate leadership style in high-pressure contexts.
Many authors consider this to be the most suitable type of leadership for business environments due to its ability to stimulate, influence and motivate.
Transactional leadership
Opposed to transformational leadership, transactional leadership is based on a system of sanctions and rewards through clearly defined incentives and consequences.
It can be effective in repetitive, routine and structured environments, but has the disadvantage of stifling creativity and initiative.
Situational leadership
Depending on the needs that may arise, this type of leadership adapts to specific situations.
Thus, we are dealing with ways of approaching tasks or handling situations that change as circumstances arise.
Its flexibility allows it to respond to different challenges, although this requires adaptability and analytical skills.
Bureaucratic leadership
Characterised by rigidity, bureaucratic leadership is based on strict compliance with rules and procedures.
It generally occurs in high-risk environments, although it limits issues such as flexibility, adaptability, motivation and creativity by being overly strict.
Charismatic leadership
As the name suggests, the charisma of the leader plays a fundamental role in this type of leadership.
Their appeal, communication skills, and team management style generate a magnetism that can be motivating, increasing enthusiasm and commitment.
However, on the downside, it can lead to excessive dependence on the leader’s actions and decisions in the day-to-day running of the organisation.
