Understanding How Different Leadership Styles Drive Team Performance

Business success can come as a result of many things, such as increased sales, improved customer loyalty, or employee productivity, but there is also one very important factor that is sometimes overlooked and that ultimately plays a role in the success of all of these elements. The impact that leaders have on overall business success is significant, whether that be through the strategy they inform, the daily decisions they make or how they interact with their team or employees. As with many things in an organization, the type of leadership style that is adopted can vary from business to business. In this article we explore how different leadership styles drive team performance using American psychologist, Daniel Goleman’s 6 Leadership Style theory.

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Daniel Goleman’s 6 different leadership styles

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Daniel Goleman is a well-known psychologist that has done a significant amount of research on emotional intelligence - a trait he believes is key to any leader's success. According to Daniel Goleman, there are six different ‘emotional leadership’ styles that can contribute to organizational success. Goleman also states that these leadership styles are situational and that there is no ‘one size fits all’ approach, emphasizing how these leadership styles can be used in different situations by the same leader.

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Affiliative
The affiliative leadership style sees leaders as being supportive, collaborative and empathetic toward their team members. This leadership style can be adopted in situations when leaders need to uplift the morale of their team and create a positive environment through relationship building. This will result in employees feeling more connected to the organization and will increase their engagement, enabling them to be more productive in carrying out their day to day tasks.

Authoritative
Leaders who adopt the authoritative leadership style choose to motivate and empower their employees. They’re also willing to bring about change and are committed to creating and upholding a vision and purpose for the organization. This leadership style can be useful to motivate employees by sharing how their individual efforts will contribute to the long-term success of the organization.

Coaching
Leaders who choose a coaching leadership style tend to be invested in their people and committed to their growth and development. In addition to this, leaders who adopt this style also encourage employees to continually improve. The combination of these traits enables both the employee to develop and grow, but also in turn enables the organization to reap the reward of their success in the long term.

Coercive
The coercive leadership style is most commonly used by leaders in situations of crisis where decisions need to be taken quickly and employees look to leadership for direction. Although leaders who adopt this style can be demanding and control orientated, in certain situations this can be beneficial for the organization, whether it be in the short term or potentially have an effect on the long term success of the business.

Democratic
Leaders who adopt a democratic leadership style encourage employees to participate and be included in decision making. This leadership style not only increases employee engagement but it also promotes a culture of inclusivity, drives innovation and enhances team dynamics, leading to business success.

Pacesetting
The pacesetting leadership style sees leaders having high standards, being detail oriented and focused on performance. Although this leadership style can push employees to be their best, resulting in a pool of top performers, it’s important that leaders know when and when not to adopt this style to balance high standards with risks of potential employee burnout. That being said, this leadership style can be incredibly useful in the entrepreneurial phase of an organization when growth is paramount.  

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Why leadership styles are important when it comes to driving results

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Leadership undoubtedly plays a huge role in determining the success of an organization. The way in which a leader chooses to guide their team members can either move the team forward to achieve organizational goals or hinder the team from doing this. Hence why it is important to determine a leadership style to follow.

In general, leadership styles can be defined as varying approaches that leaders take in order to manage, mentor, guide and encourage their team. Because people are innately different from one another, the leadership style that a particular leader chooses to adopt is not always the same as the leader from another organization. This essentially comes down to personal differences, such as personality or characteristics, but also external factors like the dynamic of the team or certain challenges that may be faced at the time.

There are a number of ways in which leadership styles can influence the direction and growth of an organization. Here are a few:

Employee engagement and morale
Some leadership styles can motivate employees to do well in their jobs, whilst others may demotivate them, both essentially having a significant impact on business performance. The leadership style that a leader chooses to adopt therefore has a profound effect on the engagement and well-being of their employees which plays a role in productivity, performance and ultimately profit.

Being creative and innovative
Different leadership styles can either encourage employees to openly share their opinions and thoughts, whilst others choose to provide direction and task employees with responsibility. When leaders adopt leadership styles that promote open communication, it makes employees feel valued and encourages them to contribute more, resulting in innovative projects.

Creating a positive culture
Leadership styles also have the ability to shape the culture of an organization. If a leader adopts a style that promotes a culture of connection and belonging, it is more likely for the organization to attract and retain top talent, improve brand reputation and satisfy customer needs.

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Conclusion

In conclusion, different leadership styles can be highly influential in driving business success. However, according to Goleman, it is critical that leaders adopt certain styles depending on situational factors and that a leader cannot always be the same type of leader. By being intentional with the type of leadership style you adopt in certain situations will lead to overall organizational growth and success.

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