10 common leadership styles & how to know yours

Do you want to be a more effective leader? Understanding your leadership style may help you improve your and your team’s performance.

Leadership at all levels is a crucial component in any organization. From entry-level team leads to C-suite executives to small-business owners, all leaders can benefit from learning more about various leadership styles. Discovering your own style and exploring other leadership types may help you defuse conflict, improve communication and grow into a more admirable leader.

What you’ll learn:

• A leadership style is the strategic approach an individual takes when performing their duties in a leadership role.
• Understanding leadership styles and identifying your own can help you lead your team effectively to meet your goals.
• There are many different styles of leadership, each with its own benefits and relevance for different work environments.
• When choosing the right leadership style for you, consider your own values and goals, as well as the needs of your team members and your unique work environment or projects.

A leadership style is an approach an individual takes when performing their managerial duties. In other words, someone’s leadership style is how they manage, guide and motivate others while also balancing a team’s well-being with shareholders’ and executives’ expectations. Using a leadership style that supports and empowers your teams may help you meet the expectations of your direct reports and investors alike.

Your leadership style plays a crucial role in your personal and team success, which ultimately helps guide your business toward success.

By understanding your personal leadership style, you can identify your strengths and areas for improvement. Additionally, understanding leadership styles in general can help you gain insight into the leadership traits of others and use those to enhance your own style. It may also help you understand how your leadership tactics affect your relationships with others and your team’s performance.

There are a number of different leadership approaches, each with specific strengths. Below, you’ll find descriptions of some common leadership styles, along with leader characteristics and when to consider using each style.

Please note that Capital One doesn’t endorse any leadership style over another. As a leader, you should have the information you need to determine which method works best for you and your team.

A democratic leadership style is sometimes referred to as participative leadership. That’s because a main focus of democratic leadership is to include the whole team in decision-making. Democratic leaders value and seek their team’s input on critical decisions. While the leader still has the final say, the team often feels heard and respected.

Democratic leaders loop their team in on important decisions to get their input. They let them vote on issues that affect them, like any scheduling or process changes. While a democratic leader still has the final say, they can present acceptable options for team members to choose from or consider their concerns when making big decisions.

Characteristics of democratic leaders: Democratic leaders are transparent, willing to be flexible, good at mediating group discussions and considerate of others’ opinions and input.

When to use a democratic leadership style: This leadership style is most effective in environments that prize creativity and innovation and can afford the extra time this approach may add to the decision-making process.

Coaching-style leadership focuses on the growth and development of each team member based on their individual abilities and interests. Coaching leaders know the strengths, weaknesses, motives and potential of each employee, and they consider those aspects when making decisions.

Coaching leaders may change how tasks are delegated so that each member of the team has responsibilities that better match their strengths. They may also encourage teamwork and find ways for team members to learn from each other.

Characteristics of coaching leaders: A coaching leader is supportive, motivational and familiar with their team.

When to use a coaching leadership style: Coaching leadership may work best when you can work one-on-one with each team member—and when those team members are open to being challenged in order to grow.

A pacesetter leads by example and holds their team to a high standard. Team members feel pride when they reach those standards. Though praise may be sparing, it’s that much more valuable when it’s given.

Pacesetters may actively work alongside their team on a regular basis, building their respect and trust. They demonstrate that expectations may be high but reasonable and achievable.

Characteristics of pacesetters: Pacesetters have high standards and are performance driven.

When to use a pacesetting leadership style: Pacesetting leadership is most effective when the team is already motivated and in a fast-paced environment.

Servant leadership focuses on the team’s well-being. These leaders know that the happier and healthier their team is, the more productive and engaged they are. They also believe that when team members feel they’re valued, appreciated and cared for, they often work harder. Servant leaders prioritize team fulfillment, collaboration and communication to create a supportive and positive workplace culture.

Characteristics of servant leaders: Servant leaders are good listeners and are empathetic to their team members. They understand and promote work/life balance and are big-picture thinkers.

When to use a servant leadership style: A servant leadership style may be effective in many environments, particularly for nonprofits. It may work best for work settings that aren’t overly fast paced, so leaders can take the time needed to invest in their team members.

The transformational leadership style equally prioritizes team members’ individual growth and the company’s overall success. A transformational leader continually pushes their employees to grow professionally and venture outside their comfort zones to reach overarching organizational goals. Transformational leaders often set frequent goals, providing new ones as old ones are reached to encourage continual progress.

Characteristics of transformational leaders: Transformational leaders are growth focused and are passionate and inspirational for their team members. They’re active listeners who excel at empowering and encouraging their team to meet their individual goals.

When to use a transformational leadership style: Using the transformational leadership style is an effective way to manage a team in a company that focuses on consistent growth or is fast growing. The goals may seem simple at first, but over time they become more fast paced and challenging.

The transactional leadership style is well structured and has clear team member roles and goals. These leaders have defined rewards and consequences in place to motivate their team members’ performance.

For instance, a transactional leader assigns goals for their team members, but they usually offer incentives, such as bonuses, when goals are met. The goals may be less challenging than those set by transformational leaders, as transactional leaders are focused more on rapid results than on overarching change.

Characteristics of transactional leaders: Transactional leaders are direct and communicate clearly. They’re more focused on short-term goals and like adhering to set schedules and processes.

When to use a transactional leadership style: A transactional leadership style may be effective for teams that focus on performance metrics, such as those in sales or customer service.

A visionary leadership style is also sometimes called authoritative leadership because leaders take on a mentor role for their team. A visionary leader has a clear vision for the organization’s and/or the team’s future and uses it to inspire and motivate their team. They earn the trust and respect of their team by building their confidence and working toward an admirable, desirable goal while providing personalized guidance and feedback.

Characteristics of a visionary leader: Visionaries are often charismatic and energetic and have excellent communication skills. They’re motivational and inspirational to their team members.

When to use a visionary leadership style: While this is effective in many organizations, this strategy is often especially beneficial during uncertain times. For example, visionaries might motivate their team by reminding them of the company’s mission and relating it to their team goals.

“Laissez-faire” literally translates to “allow to do,” with the general principle of this leadership style being “let people decide what they do.” These leaders delegate and entrust tasks to their direct reports while they focus on managerial duties. This approach may empower team members, who are trusted to complete tasks efficiently and to high standards with little to no assistance.

Characteristics of a laissez-faire leader: Laissez-faire leaders are hands off and value autonomy for their team members.

When to use a laissez-faire leadership style: The leadership style can be effective for teams with the qualifications, experience and performance history to warrant this level of trust and who can reliably perform the work independently.

A bureaucratic leader creates a strict plan with detailed instructions and clear expectations. While they may accept input, they tend to follow established policies and practices. Bureaucratic leaders may also organize team members in a hierarchy with tiered responsibilities and tasks. Under bureaucratic leadership, a suggestion that goes against written guidelines or regulations is likely to be rejected.

Characteristics of a bureaucratic leader: Bureaucratic leaders are rule followers and routine about business tasks.

When to use a bureaucratic leadership style: This strategy may be effective in industries where precision and consistency matter, such as those with safety considerations or that manage money. It may also work well for teams that perform methodical tasks.

Autocratic leadership involves quick, independent decision-making—it doesn’t take team members’ opinions into account. Autocratic leaders tend to be strict and provide clear plans and instructions to their team, which they expect to be followed. However, autocratic leaders don’t usually accept feedback or negotiations. They’re focused on results.

Characteristics of an autocratic leader: Autocratic leaders are results driven and rule abiding. They are confident and reliable.

When to use an autocratic leadership style: This strategy is effective in high-stakes settings that require quick, smart decisions and in highly regulated industries, where consistent and replicable results are needed. Examples may include the military and law enforcement.

Most often, the best leader pulls strategies from multiple leadership types. To find your own leadership style, consider the following:

• Your management values: Think about the type of leader you want to be and how you want your team to perceive you. For instance, are you more concerned about short-term or long-term goals? Are you willing to work alongside your team? Do you want your team to follow your instructions without question or to voice their concerns and opinions?
• Your team: Consider what motivates your team and what approach may work best for them. Do they thrive on support and recognition, or are they motivated by goals? Would they trust a charismatic leader, or would they respect one who works alongside them? What your team values in a leader often influences how effective different leadership styles will be.
• Your project or workplace: Your work environment or current project could also influence your leadership style. For instance, if your work is very confidential or hazardous or requires precise handling, a hands-on, strict approach might be best. If your work requires creativity, teamwork and a positive environment to ensure output, try an employee-centric approach that welcomes feedback and offers support.

Once you understand these needs, you should adopt leadership styles that work with them. Experiment with different strategies to learn what helps you build a successful team.

Other tips include:

• Seek out guidance. Speak to others in your role. They’ve likely been through similar struggles and may have good advice.
• Be yourself. Leaders who are authentic may gain their team’s trust and respect more easily. Being yourself can also boost your confidence and pride in what you’re doing, which may further build positive perceptions of you. Do what feels right to you, and don’t forgo the human connection with your team. Being able to relate to and communicate with your team is crucial to settling disputes and earning respect.
• Check in with your team. Your team is one of your most valuable resources when assessing your leadership style. Ask them for an honest, anonymous review of your leadership tactics, such as how effective you are as a leader or what you could be doing better.

Your leadership style should help you build your personal brand within your team and organization. It’s often a reflection of your skills, experience, work environment and personality. No leadership style is guaranteed to be effective, and how you lead may need to change as your team, work or situations change. In truth, the best leadership style is the one that works for you, your team and your organization.