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Leadership styles and when to use them
Running your own business — and the many hats you’ll wear — means how you lead may need to change weekly, daily or even by the hour. Identify your go-to style and learn when to use different ones.
Overview of styles
In a three-year study of more than 3,000 business leaders, behavioural scientist Daniel Goleman observed six main leadership styles. Goleman found when leaders used several different leadership styles their businesses performed better than when they used just one or two.
| Leadership style | Behaviours of this style |
|---|---|
| Authoritative | Authoritative leaders:
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| Pace-setting | Pace-setting leaders:
|
| Affiliative | Affiliative leaders:
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| Democratic | Democratic leaders:
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| Coaching | Coaching leaders:
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| Coercive | Coercive leaders:
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Goleman sets out more on these leadership styles in this article.
Leadership that gets results(external link) — Harvard Business Review
Find out which leadership style you lean towards:
Self-assessment: Which leadership style is your go-to?(external link) — Skills you need
Different situations need different styles
No leadership style is effective one hundred percent of the time and in all situations. The key is knowing your default setting and being able to adapt it based on what’s needed at the time.
Choosing your style
Ask yourself:
Who am I working with: What are their motivations, personality traits, knowledge and skill?
What’s required: What are my business objectives, what do I want to achieve?
How often do I see them: Do I see them regularly? Am I often away from the workplace? Are they? (For example, coaching someone who works remotely may be hard)
When do I want the work done: Do I have a tight deadline? Is it a crisis, a long-term plan, or somewhere in between?
Next think about which style best suits your situation. Use the case studies and pros and cons of each, below, to decide what would work best for you.
No leadership style is effective in all situations and 100% of the time.
Authoritative
Hallmark: Inspiring people to fulfil a vision.
Pros
- Useful when you need vision and a clear path for getting there.
- Works well in almost any business situation.
- Especially effective when the business is entering new territory (markets, products).
- Most effective for getting people behind ideas, to perform well and act with integrity.
- Motivates employees by giving their work a sense of worth.
- Gives employees flexibility — the business vision and goals are clear and employees are free to find their own way to meet them.
Cons
- Less effective if you’re working with a team of experts, or with people who are more experienced than you.
Case study
Authoritative leadership in action
A Christchurch coffee shop has been losing trade. The menu is dated, service has slipped, and the venue is shabby. New manager Tracy sets about re-energising the café and its team.
Pace-setting
Hallmark: Expecting excellence, hard work and self-direction.
Pros
- Can work well when people are highly motivated and competent.
- Well suited to times when you have a lofty goal and very short timeframe to achieve it.
- Useful for situations when competition is fierce or when decisions and actions needs to be made quickly.
Cons
- Can only be sustained for relatively short periods — employees can feel overwhelmed by demands and burn out trying to keep pace.
- Tends to hurt culture, motivation and employee performance.
- There’s no room for employees to develop.
- People can feel lost if the leader leaves.
Case study
Pace-setting leadership in action
DigiTron Games Expo is just three months away. It’s big news for Geoff and his team — make or break. The start-up gamers have been working on Hoki Moki Magic for two years. Geoff’s been the driving force, but the team’s been living and breathing the app, too.
Affiliative
Hallmark: Focusing on relationships and team bonds.
Pros
- This style works when you’re facing conflict or turbulent times.
- Builds strong team relationships and trust.
- Employees feel loyal to the business.
- People feel confident experimenting and are more likely to be innovative.
Cons
- Always looking for agreement can mean you avoid conflict or making hard decisions.
- Focusing on relationships can leave employees wondering what tasks they’re meant to be doing.
- This style isn’t helpful when you just need to get things done.
- May not work well in a time of crisis or when something is urgent.
Case study
Affiliative leadership in action
When Priya takes on a Dunedin travel agency morale is at an all-time low. The business has been run into the ground and the five agents have been through a lengthy unfair dismissal case that has affected their trust in the business and its leaders.
Quiz
Quiz: Which leadership style?
When it comes to leadership, no one size fits all. From affiliative to authoritative, coercive to coaching. Take this quiz to find out which leadership style works best in different situations.
Democratic
Hallmark: Asking what people think.
Pros
- Helps people take ownership of projects.
- People are more likely to have a vested interest in the project.
- Talking things through helps you uncover ways to keep staff motivated.
- Helps shape or establish a collective vision.
- Ensures people have a voice.
Cons
- May be difficult for people who aren’t used to having a say in things.
- People can end up frustrated and unclear what they’re responsible for doing.
- Meetings can go on with no clear outcome.
- Can be time-consuming especially if it involves multiple stakeholders.
- Employees with limited communication and interpersonal skills may feel left out.
Case study
Democratic leadership in action
Rob runs a scaffolding business with six employees. Rob regularly gets staff together to talk health and safety. He knows it’s not only best practice, but required by law. To keep his workplace safe, he needs staff 100 per cent behind health and safety.
Coaching
Hallmark: Helping people develop and grow.
Pros
- Encourages employees to take ownership of how they perform.
- Creates an environment where people are supportive and happy to give each other constructive feedback
- Ongoing dialogue helps build relationships and communicate your expectations and purpose.
- Good for developing employees’ skills as it helps them to perform well long-term.
- Positively affects your business long-term.
- Eventually frees up your time.
Cons
- May be problematic when the person is unskilled and has never done the task.
- Not useful in a time of crisis or when things need to be done quickly.
- Feedback needs to be motivating and positive to avoid micromanaging.
- May not work when people are resistant to change.
- You need to be ready to accept short term failure to achieve long term learning.
Case study
Coaching leadership in action
Mike of Mike’s Motors is the face of his business. But after 30 years in the trade, he plans to spend less time fixing cars and more time fly fishing. His junior mechanic, Bryce, is hard working, sociable and keen. It’s time to let him step up and take on more.
Coercive
Hallmark: Demanding people do what you say.
Pros
- Benefits employees who need close supervision and direction.
- Highly effective in an emergency or crisis.
- Useful when working towards tight deadlines.
- Allows the leader to demonstrate their talents and expertise.
Cons
- Needs to be used with caution as can alienate employees.
- May stifle creativity and stop employees from expressing their own opinions and ideas.
- Can stops people from using their initiative.
- May make employees feel they have no independence in their work.
- Can negatively affect motivation.
Case study
Coercive leadership in action
It’s the morning of a big budget wedding, and Mia is two staff down. Six months in the planning, her company has pulled out all the stops to give the couple exactly what they want.
Mia has a lot to lose if her clients don’t get their dream day. And besides, she’s never yet let a client down — and doesn’t intend to start now.