Introduction

Imagine a world without leaders - Apple without Steve Jobs’s vision, the Tata group without Ratan Tata’s foresight, or the freedom movement without Gandhi's resolve. When we speak of leadership, one naturally thinks of someone giving orders, however, it is far from what it is supposed to be. A leader is supposed to influence, motivate, provide vision, and adapt to different situations. Different leaders have different ways of handling situations, however, in the words of Daniel Goleman, a renowned psychologist said that a great leader is expected to recognize that different circumstances may call for different approaches to leadership.

Leadership styles meaning can be defined as the behavioral approach that is used by leaders, to motivate and influence their followers. The type of leadership determines how the group of followers would implement the plans and strategies, and eventually achieve their goals. The different leadership styles in management have been studied over the years to understand what aspects of leadership motivate people the most. According to some reports, 83% of organizations think that it is important to develop leaders at every level of the company. This article aims to look deeper into the various leadership styles, how they are implemented in different industries, what are its pros and cons, etc.

What Are Leadership Styles?

Leadership style is defined as the distinct approach that a leader undertakes to guide, motivate, and manage their team or organization. This can include a range of things like - the leader's behavior, decision-making process, how they communicate, and their overall ability to influence others. There are different forms of leadership styles, ranging from authoritative and directive to collaborative and transformational. A good leader needs to understand what type of leadership style should be adopted by them, as this can vary depending on the organization or the situation at hand.

According to some studies, 78% of leaders try to actively engage with their team regularly. By doing so the leaders can ensure they cultivate a supportive work environment, where the team is likely to follow the instructions of the leader. The leadership style also plays an important role in determining organizational behavior. The kind of leadership that prioritizes employee motivation, like transformational and democratic, can increase morale and productivity. Similarly, communication can also determine the style of leadership. Leaders who go for a participative approach, where employees are involved in decision-making, are likely to foster a sense of ownership and collaboration with the team.

Common Leadership Styles Explained

There are different styles of leadership, each has its advantages and disadvantages. It is therefore important to understand the different traits associated with each leadership style so that one can - understand their approach and explore new styles that they would want to embrace in the future. Below mentioned are some of the most commonly known leadership styles:

• Autocratic Leadership: Autocratic leadership is defined as the kind of leadership where all the decisions are taken by the leader on behalf of the team. They have complete authority and power to decide what needs to be done and how it should be done. In the case of autocratic leadership, there is no room for consulting other team members before any decision is made. Once the leader makes a particular decision, it is expected that everyone else will support that.

Even though autocratic leadership can be useful in situations where the leader has a good amount of knowledge and experience about the market or circumstances, and where a decision needs to be made swiftly. However, mostly there is an amount of fear among the team, which can lead to employee disgruntlement as most of the decisions can be against their interest. One of the most infamous examples of an autocratic leader was Adolf Hitler, who was known to have absolute control over the government and military, making unilateral decisions.

• Democratic Leadership: Democratic leadership on the other hand is the opposite of autocratic leadership. In this form of leadership, a leader makes decisions based on the inputs they receive from the team. This form of leadership encourages collaboration among the team members, every member feels they have an opportunity to contribute in some way. This is one of the most popular forms of leadership styles, especially among lower-level employees, as this makes them feel valued.

This kind of leadership also helps in increasing employee engagement and productivity as varied opinions and ways of thinking are encouraged. Democratic leaders are also big believers in delegation of authority to others, this way specific skills and experiences of different team members can be used to carry out specific tasks. One good example of a democratic leader was Mr. Ratan Tata, who always valued the input of his employees and encouraged open dialogue to gather diverse perspectives.

• Laissez-Faire Leadership: It is also known as hands-off or passive leadership, as in this case, the leaders provide their team with all the information and resources needed by them to perform a particular task and let them be. Here the leader allows the team to figure out how the task needs to be performed, they don't supervise them. Even though it is considered a hands-off approach, sometimes the leaders are available for the group in case they need any assistance or consultation. This kind of leadership requires a lot of trust, the leader needs to be confident in their team that they possess the required skills to complete the required task without compromising on the quality of the outcome. Warren Buffett's approach of allowing Berkshire Hathaway “on its own” without supervision is an excellent example of laissez-faire leadership.

• Transformational Leadership: Transformational leadership involves transforming the business by motivating and inspiring the team members to increase their contribution, so much so that they go beyond exchanges and rewards. In this form of leadership, the leaders expect their team to push their limits and consistently work until they can see a transformation or a considerable improvement. These kinds of leaders believe that by going beyond their comfort zones team members can achieve way beyond their perceived capabilities. Transformational leaders usually possess a high level of emotional intelligence, empathy, good communication skills, and a clear and shared vision. Satya Nadella, the CEO of Microsoft, can be called a transformational leader. Before him, Microsoft was facing declining market share. However, under Nadella's leadership, Microsoft's market value increased from around $300 billion in 2014 to over $2 trillion in 2021.

• Transactional Leadership: This form of leadership is also known as give-and-take leadership, just like a transaction. Here team members abide by the instructions of their leaders in their jobs, in exchange for a payment for their services. The employees are rewarded based on the work they have performed. Here each team member is evaluated based on predetermined performance criteria, if they have gone beyond their way and outdone themselves they are usually entitled to a bonus, which keeps them motivated. In the case of transactional leadership the roles and responsibilities of each employee and their schedules are clearly defined, in case of any deviations penalties can also be imposed. Bill Gates, the co-founder of Microsoft, is known for his transactional leadership style, with clear expectations, monitoring employee performance, and a system of rewards and penalties.

• Bureaucratic Leadership: In the case of bureaucratic leadership, the leader follows a hierarchical structure. Here all the activities and processes are carried out according to the policies and rules, there is hardly any room left for flexibility. Some rules have been pre-defined and the leader must ensure that the team follows them meticulously. It doesn't mean that any opinion or input from the team is not considered, however, if the leader finds them not in line with the organizational policy they have the right to reject them. This form of leadership is present in old organizations where there is a lot of red tape. In such situations, new ideas are not appreciated and are met with a lot of resistance. An example of bureaucratic leadership is seen in McDonald's, where they offer a standardized experience across all their franchises globally.

• Servant Leadership: In the case of servant leadership the leader acts as a servant to the team. They put the needs of the teams on their own. These kinds of leaders usually possess a high level of integrity, empathy, and stewardship. Such leaders aim to promote innovation and empower the team members so they can reach their truest potential. These leaders also believe in sharing their power and authority with their team members so that they can inculcate leadership qualities in them. Fred Smith, the CEO of FedEx, is known to have demonstrated servant leadership. He believed when his employees were happy, it would lead to satisfied customers, which in turn would make a profit for the company.

Leadership Styles in Different Industries

Different forms of leadership can be noticed in different industries. When we explore the diverse landscape of leadership across various industries we can see the impact different leadership styles have on the culture, productivity, and success of the organizations. Some of these industries and the leadership styles adopted in those industries are mentioned below:

• Leadership Styles in Business: When we are talking about business, leadership styles play a significant role in the success of an organization. For example, startups often benefit from transformational and democratic leadership styles. Since these are smaller companies, by having a transformational leader who can inspire and motivate their team to take risks and come up with innovative solutions, they can stay ahead of the competition. Similarly, democratic leaders encourage participation in decision-making, thereby fostering a culture of ownership and collaboration. In the case of MNCs, a mix of styles is adapted because of their global presence and diverse workforce.

• Leadership Styles in Education: The style of leadership in educational institutions plays a major role in shaping the future of students. Effective leadership in education involves creating a positive and supportive environment that would foster students' growth. Usually, educational institutions go for transformational and instructional leadership styles. For example, visionary leaders like Dr. APJ Abdul Kalam have always inspired educators and students with his forward-thinking approach and his dedication to education.

• Leadership Styles in Healthcare: Effective leadership is also required in healthcare to ensure efficient hospital management and high-quality patient care. In the case of healthcare, various forms of leadership styles are used in order to manage the clinical and administrative departments. They primarily rely on transformational and servant leadership styles. Dr. Devi Shetty, a renowned cardiac surgeon is an excellent example of transformational leadership in healthcare. It was his vision that revolutionized cardiac care in India, making it more affordable and accessible to ordinary Indians.

• Leadership Styles in Politics & Government: One of the most obvious forms of leadership is shown by the politicians, these are the leaders that are responsible for shaping the growth and development of a nation. Leading a nation is a complex task and hence one form of leadership cannot be used for all situations. Sometimes a political leader might be expected to motivate and inspire the nation, encourage them to innovate, and challenge the status quo, this is more of a transformational leadership style. On the other hand, in certain situations, like a crisis, an autocratic leadership style is used. For example, the current prime minister of India, Mr. Narendra Modi, is known for his strong communication skills and decisive actions, he uses a charismatic leadership style where he can easily inspire and mobilize large groups of people with his charm.

Leadership Styles: Theories & Models

There have been some theories and models developed to better understand the different forms of leadership and how they help in achieving the goals of any organization. In this section, we will explore some of these theories:

• Daniel Goleman’s Six Leadership Styles: Daniel Goleman, who is a renowned psychologist, in his work on emotional intelligence introduced six distinct leadership styles. He understood that just being a boss doesn't necessarily make one a leader, one needs to possess interpersonal skills to be an effective leader. According to him the six different forms of leadership are:

1. Coercive Leadership Style

2. Authoritative Leadership Style

3. Affiliative Leadership Style

4. Democratic Leadership Style

5. Pacesetting Leadership Style

6. Coaching Leadership Style

• Hersey and Blanchard’s Situational Leadership Model: This model believes that organizations should not stick to one single form of leadership, instead they need to adapt to the unique needs of different situations. Developed by Paul Hersey and Kenneth Blanchard, this model classifies employees (followers) based on their capacity and experiences. There are four distinct groups of followers depending on their ability and eagerness to work. These four categories are:

1. Unable and Unwilling

2. Unable and Willing

3. Able and Unwilling

4. Able and Willing

   • DISC Personality and Leadership: This theory is used to categorize individuals based on four characteristics - Dominance, Influence, Steadiness, and Conscientiousness. Each of these four characteristics has its strengths and features that would enhance the leadership style. The DISC personality framework can be used to understand different leadership styles and optimize the effectiveness of the team. For example, it can be used by every team member to better understand the rest of the team. The leader can use it to understand the psyche of each member and leverage their unique skills.

Conclusion

The concept of leadership is very dynamic and not one-size-fits-all, it can vary depending on the situation, organizational culture, and the team members involved. As we have discussed in this article, different forms of leadership styles have their strengths and challenges, therefore it is important for leaders to carefully study and understand which form of leadership would have the maximum impact on their organization. In a country like India where there are different industries, each with a different business landscape, one can observe fascinating case studies on different leadership styles. Starting from business, education, and healthcare to politics, there are several real-life examples of effective leadership.

Ultimately, it is important to understand that leadership is not just about bossing people around, it is about how one can influence people and drive change. By studying different theories of leadership, and by looking at real-life examples, one can gain valuable insights into how these principles translate into practice. By understanding and applying these concepts, one can cultivate strong and adaptable leaders who can navigate challenges and create a lasting impact.