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Last Updated on December 14, 2020

5 Types of Leadership Styles (And Which Is Best for You)

5 Types of Leadership Styles (And Which Is Best for You)

It takes great leadership skills to build great teams.

The best leaders have distinctive leadership styles and are not afraid to make the difficult decisions. They course-correct when mistakes happen, manage the egos of team members and set performance standards that are constantly being met and improved upon.

With a population of more than 327 million, there are literally scores of leadership styles in the world today. In this article, I will talk about the most common types of leadership and how you can determine which works best for you.

5 Types of Leadership Styles

I will focus on 5 common styles that I’ve encountered in my career: democratic, autocratic, transformational, transactional and laissez-faire leadership.

The Democratic Style

The democratic style seeks collaboration and consensus. Team members are a part of decision-making processes and communication flows up, down and across the organizational chart.

The democratic style is collaborative. Author and motivational speaker Simon Sinek is an example of a leader who appears to have a democratic leadership style.

    The Autocratic Style

    The autocratic style, on the other hand, centers the preferences, comfort and direction of the organization’s leader. In many instances, the leader makes decisions without soliciting agreement or input from their team.

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    The autocratic style is not appropriate in all situations at all times, but it can be especially useful in certain careers, such as military service, and in certain instances, such as times of crisis. Steve Jobs was said to have had an autocratic leadership style.

    While the democratic style seeks consensus, the autocratic style is less interested in consensus and more interested in adherence to orders. The latter advises what needs to be done and expects close adherence to orders.

      The Transformational Style

      Transformational leaders drive change. They are either brought into organizations to turn things around, restore profitability or improve the culture.

      Alternatively, transformational leaders may have a vision for what customers, stakeholders or constituents may need in the future and work to achieve those goals. They are change agents who are focused on the future.

      Examples of transformational leader are Oprah and Robert C. Smith, the billionaire hedge fund manager who has offered to pay off the student loan debt of the entire 2019 graduating class of Morehouse College.

        The Transactional Style

        Transactional leaders further the immediate agenda. They are concerned about accomplishing a task and doing what they’ve said they’d do. They are less interested in changing the status quo and more focused on ensuring that people do the specific task they have been hired to do.

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        The transactional leadership style is centered on short-term planning. This style can stifle creativity and keep employees stuck in their present roles.

        The Laissez-Faire Style

        The fifth common leadership style is laissez-faire, where team members are invited to help lead the organization.

        In companies with a laissez-faire leadership style, the management structure tends to be flat, meaning it lacks hierarchy. With laissez-faire leadership, team members might wonder who the final decision maker is or can complain about a lack of leadership, which can translate to lack of direction.

        Which Leadership Style do You Practice?

        You can learn a lot about your leadership style by observing your family of origin and your formative working experiences.

        Whether you realize it, from the time you were born up until the time you went to school, you were receiving information on how to lead yourself and others. From the way your parents and siblings interacted with one another, to unspoken and spoken communication norms, you were a sponge for learning what constitutes leadership.

        The same is true of our formative work experiences. When I started my communications career, I worked for a faith-based organization and then a labor union. The style of communication varied from one organization to the other. The leadership required to be successful in each organization was also miles apart. At Lutheran social services, we used language such as “supporting people in need.” At the labor union, we used language such as “supporting the leadership of workers” as they fought for what they needed.

        Many in the media were more than happy to accept my pitch calls when I worked for the faith-based organization, but the same was not true when I worked for a labor union. The quest for media attention that was fair and balanced became more difficult and my approach and style changed from being light-hearted to being more direct with the labor union.

        I didn’t realize the impact those experiences had on how I thought about my leadership until much later in my career.

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        In my early experience, it was not uncommon for team members to have direct, brash and tough conversations with one another as a matter of course. It was the norm, not the exception. I learned to challenge people, boldly state my desires and preferences, and give tough feedback, but I didn’t account for the actions of others fit for me, as a black woman. I didn’t account for gender biases and racial biases.

        What worked well for my white male bosses, did not work well for me as an African American woman. People experienced my directness as being rude and insensitive. While I needed to be more forceful in advancing the organization’s agenda when I worked for labor, that style did not bode well for faith-based social justice organizations who wanted to use the love of Christ to challenge injustice.

        Whereas I received feedback that I needed to develop more gravitas in the workplace when I worked for labor, when I worked for other organizations after the labor union, I was often told to dial it back. This taught me two important lessons about leadership:

        1. Context Matters

        Your leadership style must adjust to each workplace you are employed. The challenges and norms of an organization will shape your leadership style significantly.

        2. Not All Leadership Styles Are Appropriate for the Teams You’re Leading

        When I worked on political campaigns, we worked nonstop. We started at dawn and worked late into the evening. I couldn’t expect that level of round-the-clock work for people at the average nonprofit. Not only couldn’t I expect it, it was actually unhealthy. My habit of consistently waking up at 4 am to work was profoundly unhealthy for me and harmful for the teams I was leading.

        As life coach and spiritual healer Iyanla Vanzant has said,

        “We learn a lot from what is seen, sensed and shared.”

        The message I was sending to my team was ‘I will value you if you work the way that I work, and if you respond to my 4 am, 5 am and 6 am emails.’ I was essentially telling my employees that I expect you to follow my process and practice.

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        As I advanced in my career and began managing more people, I questioned everything I thought I knew about leadership. It was tough. What worked for me in one professional setting did not work in other settings. What worked at one phase of my life didn’t necessarily serve me at later stages.

        When I began managing millennials, I learned that while committed to the work, they had active interests and passions outside of the office. They were not willing to abandon their lives and happiness for the work, regardless of how fulfilling it might have been.

        The Way Forward

        To be an effective leader, you must know yourself incredibly well. You must be self-reflective and also receptive to feedback.

        As fellow Lifehack contributor Mike Bundrant wrote in the article 10 Essential Leadership Qualities That Make a Great Leader:

        “Those who lead must understand human nature, and they start by fully understanding themselves…They know their strengths, and are equally aware of their weaknesses and thus understand the need for team work and the sharing of responsibility.”

        The way to determine your leadership style is to get to know yourself and to be mindful of the feedback you receive from others. Think about the leadership lessons that were seen, sensed and shared in your family of origin. Then think about what feels right for you. Where do you gravitate and what do you tend to avoid in the context of leadership styles?

        If you are really stuck, think about using a personality assessment to shed light on your work patterns and preferences.

        Finally, the path for determining your leadership style is to think about not only what you need, or what your company values, but also what your team needs. They will give you cues on what works for them and you need to respond accordingly.

        Leadership requires flexibility and attentiveness. Contrary to unrealistic notions of leadership, being a leader is less about being served and more about being of service.

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        Featured photo credit: Unsplash via unsplash.com

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        Jennifer R. Farmer

        An author and trainer specializes in helping socially-conscious entrepreneurs, celebrities and activists

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        Last Updated on January 6, 2021

        14 Ideas on How to Measure Productivity to Make Progress

        14 Ideas on How to Measure Productivity to Make Progress

        Everyone has heard the term productivity, and people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity.”

        In its simplest form, the productivity formula looks like this: Output ÷ Input = Productivity.

        For example, you have two salespeople each making 10 calls to customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

        For salesperson one, the output is 2 sales and the input is 10 sales: 2 ÷ 10 = .2 or 20% productivity. For salesperson two, the output is 3 sales and the input is 10 sales: 3 ÷ 10 = .3 or 30% productivity.

        Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

        Knowing this information we can now better determine what course of action to take with salesperson #1.

        Some possible outcomes might be to require more in-house training for that salesperson, or to have them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

        How to Measure Productivity With Management Techniques

        Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

        1. Identify Long and Short-Term Goals

        Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

        For example, if your company’s goal is to maximize market share, you’ll want to measure your team’s productivity by their ability to acquire new customers, not necessarily on actual sales made.

        2. Break Down Goals Into Smaller Weekly Objectives

        Your long-term goal might be to get 1,000 new customers in a year. That’s going to be 20 new customers per week. If you have 5 people on your team, then each one needs to bring in 4 new customers per week.

        Now that you’ve broken it down, you can track each person’s productivity week-by-week just by plugging in the numbers:

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        Productivity = number of new customers ÷ number of sales calls made

        3. Create a System

        Have you ever noticed that whenever you walk into a McDonald’s, the French fry machine is always to your left? 

        This is because McDonald’s created a system. They have determined that the most efficient way to set up a kitchen is to always have the French fry machine on the left when you walk in.

        You can do the same thing and just adapt it to your business.

        Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity through something as simple as adjusting the workday.

        Knowing how to measure productivity allows you to set up, monitor, and fine tune systems to maximize output.

        4. Evaluate, Evaluate, Evaluate!

        We’ve already touched on using these productivity numbers to evaluate and monitor your employees, but don’t forget to evaluate yourself using these same measurements.

        If you have set up a system to track and measure employees’ performance, but you’re still not meeting goals, it may be time to look at your management style. After all, your management is a big part of the input side of our equation.

        Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individual’s strengths and weaknesses.

        Just remember that you and your management style contribute directly to your employees’ productivity.

        5. Use a Ratings Scale

        Having clear and concise objectives for individual employees is a crucial part of any attempt to increase workplace productivity. Once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

        Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

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        It’s also a good way to track long-term progress and growth in areas that need improvement.

        6. Hire “Mystery Shoppers”

        This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

        You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

        You can request evaluations for your employees friendliness, how long it took to greet the shopper, employees’ knowledge of the products or services, and just about anything else that’s important to a retail operation.

        7. Offer Feedback Forms

        Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

        First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

        Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

        You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences, which will help as you’re learning how to measure productivity.

        8. Track Cost Effectiveness

        This is a great metric to have, especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

        Again, this one is easy to plug into the equation: Productivity = amount of money brought in ÷ amount of money spent.

        Having this information is very useful in forecasting expenses and estimating budgets.

        9. Use Self-Evaluations

        Asking your staff to do self evaluations can be a win-win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

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        Using self-evaluations is also a good way to make sure that the employees and employers goals are in alignment.

        10. Monitor Time Management

        This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email, and making personal calls all contribute to lower productivity[1].

        Time Management Tips to Improve Productivity

          The trick is to limit these activities without becoming overbearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

          While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint, it is best to have policies and rules that are seen as fair to both sides as you’re learning how to measure productivity.

          11. Analyze New Customer Acquisition

          We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep an existing one.” And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

          Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula: Productivity = number of new customers ÷ amount of money spent to acquire those customers.

          For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

          Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads, and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers, and your print ad produced 9 new customers.

          Let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025, or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022, or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03, or a 3% return on productivity).

          From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

          12. Utilize Peer Feedback

          This is especially useful when people who work in teams or groups. While self-assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

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          Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up[2]! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average, and 50% are average.

          Are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

          It’s the same in the workplace. Using peer feedback will often provide a more accurate assessment of a person’s ability than a self-assessment would.

          13. Encourage Innovation and Don’t Penalize Failure

          When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

          Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

          Either way, you have gained valuable knowledge and boosted morale by including employees in the decision-making process.

          14. Use an External Evaluator

          Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

          They will design a complete analysis of your business’ productivity level. In their final report, they will offer suggestions and recommendations on how to improve productivity.

          While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

          Final Thoughts

          These are just a few of the things you can do when learning how to measure productivity. Some may work for your particular situation, and some may not.

          The most important thing to remember when deciding how to track productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments, and analyzing the results of those adjustments.

          The business world is changing fast, and having the right tools to track and monitor your productivity can give you the edge over your competition.

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          Featured photo credit: William Iven via unsplash.com

          Reference

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