Best Leadership Styles to Consider When Leading Teams

Best Leadership Styles to Consider When Leading Teams

Written by Ramsay, In Business, Updated On
May 21st, 2023

Effective leadership is a critical component of any team’s or organization’s success. The capacity of a leader to encourage, inspire, and guide their team may have a significant influence on productivity, employee happiness, and overall performance. Understanding different leadership styles and knowing when to use them in different situations is an important component of leadership. In this post, we will look at some of the finest leadership styles to consider while managing teams and how they might improve organisational outcomes.

Best Leadership Styles to Consider When Leading Teams

Leading Teams

Leadership that is transformational:

Transformational leadership is a prominent leadership style that encourages and inspires team members to reach their maximum potential. Transformational leaders establish high expectations and encourage their teams to exceed them by setting a good example. They instill trust in their followers, encourage innovation, and enable them to take responsibility of their work. Transformational leaders instill a sense of purpose and dedication in their team members by presenting a clear vision and demanding goals.

Democratic Governance:

Democratic leadership, sometimes referred to as participatory leadership, entails incorporating team members in decision-making. Leaders that adopt this style appreciate their team’s opinion and promote open communication. Democratic leaders generate a sense of ownership and participation in their staff, which may lead to improved job satisfaction and productivity. This technique works especially well when complicated issue-solving is necessary or when team members have important knowledge.

Leadership as a Servant:

Servant leadership emphasises the leader’s dedication to serving and addressing the needs of their team members. Leaders that use this approach prioritise their workers’ well-being and growth, fostering a helpful and nurturing work atmosphere. Servant leaders foster trust, loyalty, and a strong feeling of camaraderie by concentrating on the growth and success of their team. This personality type is especially successful at encouraging cooperation, collaboration, and long-term employee happiness.

Transactional Management:

Transactional leadership is built on an open dialogue between the leader and their followers. Leaders that use this approach emphasise defining clear goals, rewarding or punishing employees depending on performance, and ensuring that tasks are accomplished effectively. Transactional leaders provide clear structures and processes, which can be advantageous in highly regulated sectors or circumstances requiring quick compliance. This method, however, may be less effective in encouraging creativity or long-term employee engagement.

Laissez-faire Management:

Laissez-faire leadership is distinguished by the leader’s minimum intervention, enabling team members to make decisions and handle their own work. This management approach empowers people and promotes autonomy and self-direction. When team members are highly talented, experienced, and self-motivated, it is most successful. However, if not properly handled, it can lead to a lack of direction and coordination. Laissez-faire leadership works best for teams that thrive in a creative and adaptable work environment.

The Value of Stakeholder Analysis:

Leaders must include stakeholder analysis while making decisions that influence their team or organization, in addition to knowing diverse leadership styles. Stakeholder analysis is identifying and analyzing diverse stakeholders’ interests, requirements, and potential implications on a project or decision.

Team members, clients, consumers, suppliers, shareholders, and other persons or organizations with a vested interest in the outcome are examples of stakeholders. Leaders may acquire significant insights into the expectations and concerns of various stakeholders by performing a thorough stakeholder analysis, allowing them to make educated choices and successfully manage relationships.

Stakeholder analysis assists leaders in the following ways:

  • Identify Key Stakeholders:

Through stakeholder analysis, executives may identify the persons or groups that have the most influence over a project or decision. This enables them to prioritize their efforts and properly deploy resources.

  • Understanding Stakeholder Requirements:

Each stakeholder has unique requirements, interests, and expectations. Leaders may obtain a full grasp of these elements and their implications by analyzing stakeholders.


In conclusion, good leadership is a critical component of the team and organizational success. Leaders may encourage and inspire their team members to perform at their best by using the proper leadership style. Transformational leadership promotes personal development and a feeling of purpose, whereas democratic leadership encourages cooperation and inclusion.

Servant leadership is concerned with nurturing and assisting personnel, whereas transactional leadership is concerned with setting clear expectations and incentives. Individuals are empowered and their liberty is encouraged by laissez-faire leadership.

Furthermore, while making decisions, leaders must incorporate stakeholder analysis. Understanding the interests and concerns of diverse stakeholders enables leaders to make educated decisions and successfully manage relationships. Leaders may manage complicated circumstances and achieve alignment with organizational goals by identifying important stakeholders and understanding their demands.

Finally, there is no such thing as a one-size-fits-all strategy for leadership. The optimal leadership style will differ based on the team, organization, and circumstances. Effective leaders are adaptive and may use a variety of leadership styles as needed. Leaders may create a good and productive work environment that promotes success and accomplishes desired goals by consistently developing their leadership abilities and being responsive to the requirements of their team and stakeholders.

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