Four Types of Business Leadership Every Leader Must Know

The leadership type you practice says a lot about your leadership characteristics. Leadership is something that is also in constant change. The ways are changing in which leaders can improve their leadership and allow the company to grow. To better understand leadership, let’s take a look at the four types of business leadership every leader must know. Keep reading to figure out which type suits you the best and which leader you are.

Democratic Leadership

Well, the name says it all! Democratic Leadership is one of the most effective leadership types. It gives the lower-positioned employees the liberty to practice authority, as they might need to use it when appointed to higher positions in the future. In this type of leadership, the leader is someone who takes precedence in making decisions based on the input of team members. Even though the leader makes the final decision, each team member has the authority to say on the project. Discover more about democratic leadership through G Scott Paterson.

Strategic Leadership

Another most effective leadership type is Strategic Leadership. This is a type that works between a company’s primary operations and its progress opportunities. The leader can accept the burden of executive interests while making sure the working condition of the workplace remains stable for everyone. Strategic leadership is also desirable in many organizations since it caters to multiple employees.

Coach-style Leadership

This one is quite easy to understand since it is similar to the sports coaching style. Coach-style leadership, the leader focuses on the growth of the individual strengths of team members. He or she also emphasizes strategies that will enable their team members to work better on the project. You will find strong similarities to democratic and strategic leadership but know that coach-style leadership puts a lot of light on the individual growth and success of the employees.

While practicing coach-style leadership, leaders often may not focus on similar skills or traits; instead, they might create a team where each individual has distinct expertise or skill. This is how, in the long run, solid and dependent teams are made by the leaders who can communicate and connect well with others to get the work done efficiently. Want to build a coach-style leadership? Follow tips and tricks from Scott Paterson Toronto.

Bureaucratic Leadership

Bureaucratic leadership is about going by the rules or books.  In this type of leadership, the leaders might listen to the new ideas or strategies of the employees but will instantly reject them if it conflicts with the policies and procedures of the company. You can also come across a bureaucratic leader in older or traditional organizations. When their employees propose a new strategy that seems unconventional in such companies, the leader resents it. This is because these companies are already successful with their past practices, and trying new options may waste resources if the results are not satisfactory.

Employees don’t feel a sense of freedom under bureaucratic leadership since they cannot excel in their respective roles. Such a type of leadership can quickly block innovation and growth. It is not recommended by experts if companies have growth-driven goals.


There are different types of business leadership one can pick as per their goals.

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