The classic thinking on leadership style refers to how decisions are made. Originally, 3 leadership styles were identified: autocratic, participative and laissez-faire. When the focus shifts from decision making to how to motivate subordinates, other styles arise. There are charismatic leaders, those who are visionary or transformational. Some also show leadership by example.
The Classic Leadership Styles
Leadership style can be a matter of personality but here we assume that a choice is made relative to the needs of the situation.
1. Autocratic Leadership
When executives make decisions and simply tell team members what to do, we have directive or autocratic leadership. The word “autocratic” suggests being dictatorial, but clear direction can be provided without being heavy-handed. The idea is that leaders should be directive when time is of the essence, when subordinates don't know what to do, or they are not motivated.
2. Participative Leadership
This style is sometimes referred to as democratic or consultative. The key point is that subordinates are involved in making the decision rather than simply being told what to do. Consultative leaders gather input from subordinates but still make the decision themselves. Being participative or democratic means that executives and team members make decisions together. This style is useful when the executive recognizes that wider input will yield a better decision or when participation will enhance commitment to the decision.
3. Laissez-faire Leadership
With this style, executives let subordinates make their own decisions. This style is also called empowering or delegative. The conventional term 'laissez-faire” has a lax implication, suggesting that employees are free to do whatever they want. But it is now more constructive to talk of empowerment so that there is no connotation of losing control.
There is no universally correct style. Some decisions are best made unilaterally, some participatively and others can be delegated.
Newer Leadership Styles
Today the three classic leadership styles seem too basic. They are still relevant, but leaders also need to know how to influence subordinates to exert extra effort or rally around a difficult mission. Such styles include being charismatic, transformational, visionary, transactional, offering hard evidence and leading by example. The first three overlap by virtue of offering an inspiring vision of the future. Being transactional means offering rewards for a job well done. But you can also influence people with hard evidence or by setting an example. The leadership style an executive uses will always combine personal preference and the perceived needs of the situation.