Exploring How Different Leadership Styles Impact You and Your Team

Leadership is more than just a job title—it’s a powerful force shaping how teams perform, collaborate, and grow. The style you adopt as a leader can ignite innovation, foster trust, and build a resilient culture, or it can unintentionally lead to disengagement and stagnation.

In today’s dynamic workplaces, where adaptability and emotional intelligence are more important than ever, understanding the full spectrum of leadership styles is essential. Each approach brings its own strengths and challenges, and the most successful leaders are those who can read their teams’ needs and adapt accordingly. Exploring different leadership styles and learning how to apply them strategically is key to unlocking your full potential as a leader.

Leadership Style Matters More Than You Think

Leadership isn’t just about telling your direct reports what to do; it’s about shaping your workplace environment. The leadership style you adopt can profoundly affect your team’s morale, productivity, creativity, and employee retention.

A transformational leader may inspire innovation and foster a culture of continuous improvement, while an autocratic leader might excel in high-stakes, time-sensitive situations. Each approach comes with strengths and drawbacks. Research consistently shows that leadership style plays a crucial role in team performance. According to a Gallup study, their leaders account for at least 70% of the variance in employee engagement scores.

Importantly, leadership is not a fixed trait. While some individuals may possess natural leadership tendencies, effective leadership can be developed and refined, as can your specific style of leadership. The type of leadership you employ can change from day to day or interaction to interaction. Leadership training and professional development can also help cultivate the awareness, empathy, and strategic thinking needed to deploy the most effective leadership style for any given situation.

What Are the Most Common Leadership Styles?

Identifying and understanding the common leadership styles is the first step to becoming a more adaptable leader who is able to adjust to any situation. Let’s explore several widely recognized leadership styles and how they influence team dynamics and outcomes:

Transformational Leadership

What is it? Transformational leaders focus on inspiring and motivating their team to exceed expectations. They encourage innovation and adaptability and lead by example with a clear vision. These types of leaders often have bright promises for the future that get their employees hyped about potential projects and growth opportunities within the team.

The impact of a transformational leadership style: This style fosters a high-performance culture and drives meaningful change. It’s particularly effective in organizations undergoing transformation or growth. However, it’s very important to follow through on the promises and have a realistic action plan to carry out the vision. If the vision turns out to be hollow or unrealistic, this can lead to a loss of trust and disillusionment within the team.

An example of transformational leadership: A well-known example of transformational leadership is Satya Nadella’s approach at Microsoft. When he became CEO, Nadella shifted the company’s culture from one focused on internal competition to one centered on collaboration, continuous learning, and innovation. He articulated a clear vision to embrace a growth mindset across the organization and invested in cloud technology and AI, which revitalized employee engagement and significantly improved Microsoft’s market performance. His leadership style exemplifies how a compelling vision, backed by concrete actions, can inspire large-scale organizational transformation.

Servant Leadership

What is it? Servant leadership is a people-first approach that turns traditional power dynamics on their head. Rather than focusing on command and control, servant leaders prioritize the growth, well-being, and development of their team members. They actively listen, show empathy, and remove obstacles to help their employees succeed. Their influence stems not from authority but from trust and support. These leaders often ask, “How can I help you do your best work?” and back it up with meaningful action. Servant leaders champion ethical behaviour, community building, and shared ownership—often becoming catalysts for stronger engagement and long-term commitment.

The impact of a servant leadership style: This approach creates an inclusive and empowering work environment, enhancing trust, loyalty, and collaboration across the team. Employees tend to feel more valued, heard, and motivated, which improves morale and retention. It’s particularly effective in organizations focused on long-term development, where nurturing talent and fostering a positive workplace culture are strategic priorities. However, servant leadership can sometimes be misinterpreted as a lack of direction or decisiveness if not balanced with clear strategic intent.

An example of servant leadership: A compelling example of servant leadership in action is Cheryl Bachelder’s tenure as CEO of Popeyes Louisiana Kitchen. When she took over, the company was struggling with low morale and underperformance. Instead of imposing top-down mandates, Bachelder focused on listening to franchisees and employees, seeking to understand their needs and challenges. She emphasized service to others as a core leadership principle, investing in people development and shifting the company culture toward respect, accountability, and humility. Under her leadership, employee satisfaction soared, and Popeyes experienced a remarkable turnaround—doubling profits and significantly improving brand reputation. Her success underscores how prioritizing people can drive powerful business results.

Autocratic Leadership

What is it? Autocratic leadership is a top-down approach where the leader makes decisions independently, with minimal input from team members. This style is rooted in control, authority, and clear direction. Autocratic leaders often rely heavily on their own expertise and judgment, expecting compliance rather than collaboration. They typically set strict rules, define roles clearly, and closely monitor performance. While this can create a highly structured and disciplined work environment, it often leaves little room for open dialogue or creative problem-solving.

The impact of an autocratic leadership style: Autocratic leadership can be highly effective in situations that require quick decision-making, tight control, or high-stakes outcomes—such as in crisis management, military operations, or manufacturing environments with strict safety protocols. It ensures clarity, reduces ambiguity, and can drive fast execution. However, over-reliance on this style may lead to employee disengagement, suppressed innovation, and high turnover, particularly in knowledge-based or creative industries where autonomy and collaboration are valued.

An example of autocratic leadership: A classic example of autocratic leadership is Steve Jobs during the early years of Apple. Known for his demanding standards and hands-on approach, Jobs often made unilateral decisions and maintained tight control over product development. His intense focus and uncompromising vision were instrumental in driving innovation and launching groundbreaking products like the iPhone and MacBook. However, his style also led to internal conflict and high pressure within teams. While controversial, Jobs’ approach illustrates how autocratic leadership—when combined with vision and execution—can yield extraordinary results, particularly in high-performance or high-pressure environments.

Democratic Leadership

What is it? Democratic leadership—also known as participative leadership—is centered around collaboration and shared decision-making. These leaders actively seek input from team members, encourage open dialogue, and create an environment where everyone feels heard and valued. While the leader retains final say, decisions are typically made with group consensus in mind. This inclusive style fosters a sense of ownership, accountability, and mutual respect within the team, empowering individuals to contribute their expertise and ideas freely.

The impact of a democratic leadership style: A Democratic leadership is highly effective in environments where innovation, teamwork, and diverse perspectives are critical to success. It promotes high levels of employee engagement, creativity, and morale by making people feel involved in the process. This can lead to stronger commitment to outcomes and better problem-solving through diverse input. However, the collaborative nature of this style can slow down decision-making, especially in larger or more diverse teams where reaching consensus may be challenging. It also requires strong facilitation skills and the ability to handle differing opinions constructively.

An example of democratic leadership: An example of democratic leadership is Google’s approach to team management. In the early 2000s Google was known for fostering a culture of openness, where ideas were welcomed from all levels of the organization. Under founders Sergey Brin and Larry Page’s leadership, the company implemented policies and practices that encouraged collaboration, such as employee-led innovation initiatives like ‘20% time’, which allowed employees to dedicate 20% of their workweek to projects they were passionate about, while 80% of their time remained dedicated to core business responsibilities. This culture of participation has contributed to Google’s reputation as one of the most innovative and desirable places to work, demonstrating how democratic leadership can fuel both employee satisfaction and cutting-edge results.

Authentic Leadership

What is it? Authentic leadership is grounded in self-awareness, transparency, and integrity. These leaders are genuine in their interactions, lead with their values, and consistently align their actions with their beliefs. Rather than trying to fit a specific leadership mold, authentic leaders embrace their individuality and encourage others to do the same. They are open about their strengths and weaknesses, listen with empathy, and strive to create a safe space where trust and honesty can flourish.

The impact of an authentic leadership style: Authentic leadership helps foster a culture of trust, psychological safety, and accountability. Because these leaders are consistent and transparent, they create an environment where employees feel secure in speaking up, sharing ideas, and owning their work. Teams led by authentic leaders often show high levels of engagement, loyalty, and resilience, especially during times of uncertainty or change. However, authenticity must be paired with competence and emotional intelligence—over-sharing or lacking professional boundaries can backfire if not handled thoughtfully.

An example of authentic leadership: Howard Schultz, former CEO of Starbucks, is often cited as a model of authentic leadership. Schultz led with a strong sense of purpose and stayed true to his values—even in the face of criticism. He openly shared his personal story of growing up in a working-class family and used that perspective to guide decisions around employee benefits, such as offering healthcare to part-time workers and stock options to all employees. His emphasis on doing the right thing, even when it wasn’t the most profitable choice in the short term, helped build a culture rooted in trust, purpose, and social responsibility. Schultz’s authenticity not only resonated with his employees but also strengthened Starbucks’ brand as a values-driven company.

Matching Your Leadership Styles to Your Team Needs

Great leaders know there’s no one-size-fits-all approach. The key to effective leadership lies in aligning your style with your team’s needs and the specific context of your workplace.

For example, a startup aiming for rapid innovation may thrive under a transformational leader, while a logistics team responsible for compliance and safety might benefit more from autocratic leadership. Similarly, a highly experienced team may appreciate a democratic or servant leadership style, where collaboration and trust are paramount.

Mismatched leadership styles can lead to disengagement, reduced productivity, and high turnover. Leaders who understand how to assess their team’s dynamics and pivot their approach accordingly are far more likely to succeed.

Are There Risks of Relying Too Much on One Leadership Style?

While having a preferred leadership style is natural, rigid adherence to one method can be limiting. Overusing a single style may lead to blind spots and reduce your ability to respond effectively to different team dynamics or organizational challenges.

• Autocratic leaders may struggle with innovation because team members feel their input is undervalued.
• Democratic leaders may face delays and indecision when consensus is hard to reach.
• Transformational leaders may inadvertently burn out their team by constantly pushing for change without considering team capacity.

Recognizing when a style is ineffective is vital. Key warning signs include rising employee turnover, disengagement, and missed targets. To stay effective, regularly reflect on your approach to leading your team, seek feedback, and remain open to growth.

This is where leadership training and education becomes indispensable. Programs designed to support leadership development provide frameworks for self-assessment and collecting the feedback needed to adapt.

How Leadership Training Helps You Become a More Effective Leader

Leadership training is a catalyst for growth. It equips you with the tools, insights, and frameworks you need to better understand yourself and those you’re leading. Here’s how leadership education makes a difference:

• Self-awareness: Training helps leaders identify their dominant style and areas for development.
• Strategic agility: Learn when and how to adjust leadership styles based on team and situational needs.
• Emotional intelligence: Develop empathy, resilience, and the ability to navigate complex team dynamics.
• Decision-making: Improve the ability to lead with confidence, even in ambiguous situations.

Leadership styles play a defining role in team performance, culture, and success. Understanding the nuances of different styles – and knowing when to apply them – is what separates good leaders from great ones. By investing in leadership education and becoming more self-aware, you can not only enhance your effectiveness as a leader, but also drive meaningful change inside your organization.

Schulich ExecEd’s leadership programs help put these ideas into practice. With real-world case studies, expert faculty, and a focus on experiential learning, participants walk away feeling more confident in their ability to lead. Whether you’re leading cross-functional teams, navigating organizational change, or preparing for senior executive roles.

Ready to explore different leadership styles and take your leadership skills to the next level? Explore the Schulich ExecEd leadership programs. Certificate in Emotional Intelligence for Leaders or Certificate in Innovation and Creative Leadership are a good place to start.