Effective leadership is a critical skill that greatly impacts organisational success. No one size leadership style fits every situation though – and mastering a range of different styles will help leaders adapt and lead more effectively. By becoming more flexible in terms of how they deploy their leadership, leaders can better inspire their teams, and achieve organisational goals faster.
There are multiple ways to lead, but statistics reveal five essential approaches which offer marked benefits to the organisation – these are the core strategies that every leader should possess.
1. Transformational Leadership
Transformational leaders use a clear vision for the future to unite, inspire and motivate their employees and teams. They foster a culture that nurtures innovation and encourages change, creating an environment where workers feel empowered to contribute their ideas.
One study, published by the Journal of Leadership & Organisational Studies, found a correlation between transformational leadership and greater employee satisfaction and performance. Organisations that had transformational leaders reported a significant 40% increase in productivity.
2. Servant Leadership
This style of leadership flips the traditional model on its head, with the leader serving the team, instead of commanding from the top of the hierarchy. Servant leadership focuses on the advancement and well-being of all team members, which encourages a strong sense of community and co-operation.
According to research conducted by the Greenleaf Center for Servant Leadership, organisations who practised servant leadership saw a 10-30% rise in employee engagement.
3. Transactional Leadership
As the name suggests, transactional leadership is based on a sharply defined system of rewards and punishments. This approach is effective when it comes to motivating workers to achieve short-term tasks and targets, as it provides clear structure and employer expectations. It’s especially useful in situations where compliance and performance benchmarks will be pivotal to successful project outcomes.
Research released by the International Journal of Leadership Studies shows that transactional leadership is capable of boosting team performance by up to 20%, in relevant structured environments.
4. Democratic Leadership
Promoting employee participation, cooperation and collaboration are three central hallmarks of Democratic style leaders. These types of leaders value feedback from all team members and encourage discussions before making decisions. This leadership style makes employees feel as if they have more of a stake in the outcome, helping to create a sense of ownership and accountability among team members.
Democratic leadership leads to enhanced morale and creativity – with a Gallup poll finding teams employing this approach experiencing 25% greater employee engagement than those with more autocratic leaders.
5. Autocratic (Commanding) Leadership
Autocratic leaders typically make decisions on their own from a top-of-the-hierarchy position, without considering much feedback from team members. While this strongman style can be effective in crisis situations, where quick decision-making is vital, overuse leads to a notable lack of team motivation and creativity.
Commanding, or, autocratic leadership does have the potential to provide results quickly but it should be used sparingly – as it definitely comes with downsides. One paper published by the Journal of Applied Psychology showed that teams with autocratic leaders in place experienced a 30% drop in long-term job satisfaction.
Flexibility is the master key to modern leadership
Each of the listed leadership styles has its own strengths and weaknesses but the key for effective leaders is to be adaptable and have more than one approach to leading. Having the intuition to know when to switch between leadership styles, based on context and the needs of their team, will empower leaders to thrive in today’s quickly transforming workplace.
If they master these five leadership approaches – transformational, servant, transactional, democratic, and autocratic – leaders will cultivate a more dynamic, engaged, and productive workforce. Embracing a multifaceted leadership approach like this, will not only boost individual leader effectiveness – it will drive the whole organisation on to greater success within a constantly changing market.
