5 Types of Leadership Styles and Their Impact on Your Team

Picture this: You’re leading a project at work, and suddenly everything feels chaotic. Some team members seem disengaged, others are overwhelmed, and deadlines are slipping. Sound familiar? The truth is, your leadership style might be the missing piece of the puzzle.

Just like how understanding different types of leadership styles helps you navigate your career, knowing how to learn investment strategies can transform your financial future. At Lxme, India’s first financial platform for women, we believe empowering women with knowledge, whether it’s about leadership or finance, creates a lasting impact.

Let’s explore five powerful types of leadership styles

1. The Democratic Leader: “Let’s Decide Together”

What It Looks Like

Democratic leaders involve their team in decision-making. Think of Indra Nooyi during her time at PepsiCo – she consistently sought input from diverse voices before making major decisions.

Real-Life Impact

When Priya, a marketing manager in Mumbai, switched from making unilateral decisions to asking her team for input on campaign strategies, something magical happened. Her team’s engagement scores jumped by 40%, and they delivered their most successful campaign ever.

The impact of leadership on teams becomes crystal clear here – when people feel heard, they contribute their best ideas. However, this style can slow down urgent decisions, making it less effective during crises.

2. The Authoritarian Leader: “Follow My Lead”

What It Looks Like

These leaders make decisions quickly and expect immediate compliance. While often criticized, this style has its place, especially in high-stakes situations.

Real-Life Impact

During the 2020 pandemic, many hospital administrators had to adopt authoritarian leadership styles in management to implement safety protocols rapidly. Dr. Sharma, heading a Delhi hospital, made swift, non-negotiable decisions about PPE usage that potentially saved lives.

The trade-off? Team creativity often suffers, and long-term morale can decline if overused. It’s like taking financial shortcuts – sometimes necessary, but not sustainable long-term.

3. The Transformational Leader: “Let’s Change the World”

What It Looks Like

These leaders inspire teams with a compelling vision. They’re the ones who make you believe you can achieve the impossible.

Real-Life Impact

Kiran Mazumdar-Shaw of Biocon exemplifies this perfectly. She didn’t just build a company; she inspired an entire generation of women entrepreneurs. Her vision transformed not just her team, but India’s biotech landscape.

When applied correctly, transformational leadership styles in management can increase team performance by up to 25%. The downside? It requires enormous energy and can lead to burnout if the leader isn’t careful about boundaries.

4. The Laissez-Faire Leader: “You’ve Got This”

What It Looks Like

These leaders step back and let their teams run with minimal interference. Perfect for highly skilled, self-motivated teams.

Real-Life Impact

At a Bangalore tech startup, team lead Anita discovered that her senior developers performed best when she focused on removing obstacles rather than micromanaging. Her quarterly reviews showed 35% faster project completion rates.

This represents the best leadership style at work for experienced teams. However, it can be disastrous with inexperienced team members who need guidance.

5. The Servant Leader: “How Can I Help You Succeed?”

What It Looks Like

Servant leaders prioritize their team’s growth and well-being above their own recognition.

Real-Life Impact

Rashni, a team manager at a Chennai financial services firm, started spending 30% of her time mentoring team members and removing roadblocks. Within six months, her team’s retention rate improved by 60%, and three team members received promotions.

These effective leadership techniques create loyal, high-performing teams. The challenge? It can be time-intensive and may not yield immediate results.

Finding Your Leadership Sweet Spot

The most successful leaders don’t stick to one style. Like diversifying your investment portfolio in a female finance forum like Lxme, India’s first financial platform for women.

Consider the situation: Is it a crisis requiring quick decisions? Use authoritarian leadership. Leading a creative brainstorming session? Democratic leadership shines. Managing experienced professionals? Laissez-faire might be perfect.

Understanding various types of leadership styles isn’t just academic knowledge – it’s your toolkit for real-world success. The impact of leadership on teams ripples through everything: productivity, morale, innovation, and retention.

Your Leadership Journey Starts Now

Remember, great leadership isn’t about perfection; it’s about growth and adaptation. Just as Lxme empowers women to take charge of their financial futures by making women investing in strategies, understanding effective leadership techniques empowers you to create positive change in your workplace.

Start small: identify which style feels most natural to you, then consciously practice incorporating elements from other styles. Your team – and your career – will thank you for it.

FAQs

Further Read,

• Top 15 Influential Women Entrepreneurs in India
• Problems of Working Women
• Top 10 Books Every Woman Should Read