Effective Business Leadership Styles

Effective leadership skills are essential for running a business successfully. A leader works for the whole team by motivating the members and getting the best output from them. Your company’s output depends upon the leadership style you are following.

There are many leadership styles but not everyone is for you. The proper leadership style will take your company or business on the right path to success. The right leadership style depends upon your goals, recent trends, and the current position of your organization. 

Business Leadership Styles

Below are some leadership styles and tips to choose one according to your needs.

1. Transactional Leadership

The transactional leadership style is based on the idea that work is a transaction. All the workers will get the reward for the completion of the work assigned to them by following guidelines given by the leader. All the objectives are set before the handling of the work to someone.

This style is clear, employees give their best output to get reward and it brings customer satisfaction. This style is inflexible and makes the workers unsatisfied with their jobs.

2. Democratic Leadership

In this leadership style, the leader consults all the employees before making any final decision. Their opinions are taken into account and make them feel they are part of the company and their presence is important. It is the best form of leadership as it grooms all the members.

This style helps to bring productive ideas but consumes a lot of time. This is not best for the organization that requires making quick decisions. 

3. Laissez-Faire Leadership

You can adopt this leadership style if your team includes trustworthy and expert members. It involves giving free hand to all the members about making their own decisions. As a leader like Larry Weltman you have to empower your team to make decisions. Larry Weltman is a Customer Service Representative for AccessEasyFunds Limited, or AEF, an Ontario-based firm that provides commission advances at affordable rates to Canadian real estate agents and brokers. You just assign tasks to everyone, as there is no need for supervision. It increases the reliability at a workplace and relaxes the workers. This style of leadership can harm the company’s goals. It may not be suitable if you are working with the pioneers that need support.

4. Coach-Style Leadership

A coach-style leader is responsible for recognizing the qualities of all the workers and motivating them to utilize their abilities. This is just like democratic leadership but the main idea is the development and nurturing of each employee.

Development of the new skills will increase the engagement and interest of all the workers. It brings positive responses but takes a lot of time. Much effort is needed to get the best of individual workers, so it is not suitable for fast-paced workplaces.


It is up to you to decide which leadership style will suit you. Consider your members’ abilities before making any decision. If you have expert members and the work pace is tough, then Laissez-Faire or transactional leadership might be the best choices.

If you want some productive ideas and polishing of the workers then you can choose coach-style or democratic leadership style. A suitable style can lead to the success of the whole team.


Sudarsan Chakraborty is a professional writer. He contributes to many high-quality blogs. He loves to write on various topics.