Styles of Leadership

Transformational leadership is the opposite of the Transactional style and it involves significant change. Transformational leaders work with their teams to recognize areas for innovation within the organization and they inspire and motivate team members to work towards their own improvement and growth. These leaders are actively involved in and committed to the transformation process. As a result, team members often develop a deep sense of loyalty, trust and admiration for their leaders. One drawback of this style is the time commitment involved, however, Transformational leaders can help to increase team member motivation and their desire to succeed.

The Transactional style of leadership is centered on order and keeping the status-quo. Structure, results and a reward-penalty system make up the framework of this style. A Transactional leader looks to the self-interest of the individual and gives positive or negative reinforcement based on performance. Typically, rewards are in the form of money or other perks. Transactional leadership is best for environments that do not allow for much change such as the military and sports teams. 

The Laissez-Faire style of leadership is considered the most allowing style, meaning that the leader allows team members to make decisions and perform their jobs with minimal input and guidance. Leaders with this style put trust and faith in their employees to make decisions on their own. This “hands off” style of leadership can be uplifting for the team as they may feel they have plenty of freedom, but a leader with a Laissez-Faire style should be careful because lack of direction can be counterproductive. Without enough guidance and support, there may be impassivity and a lack of accountability. As well, some team members may be unsure of their roles and duties.