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Leadership Styles

Exam code: 7115
Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

Types of Leadership Styles

Types of leadership styles

What is leadership?

  • Leadership is about having a vision, sharing that vision with others and providing direction

  • Leadership is necessary in many different contexts

    • A leader in sport could be the captain of a national football or basketball team

    • A political leader could be a president, prime minister of leader of a political group

  • Leaders can inspire and motivate others to work towards a common goal

    • This contributes to the meeting of aims and objectives and supports the development of a motivated workforce

Leadership styles

  • Leadership styles reflect the behaviours and attitudes of a leader towards their team members and influence the organisational culture, productivity and performance of a business

  • A successful leader will be able to use a variety of leadership styles, depending on the situation, to achieve the best results for their business

Different leadership styles

Most leaders operate using an autocratic, democratic or laissez-faire leadership style
Most leaders operate using an autocratic, democratic or laissez-faire leadership style

1. Autocratic leadership

  • An autocratic leader holds absolute power and authority within a business

    • Leaders set the direction and goals of the business and makes decisions without seeking input or agreement from others

    • The opinions, ideas or expertise of team members are not generally considered

    • Decisions are generally not open for discussion or debate

    • Strict obedience and compliance is expected from subordinates

    • Communication in business is mainly one-way: downward or 'top-down'

Evaluating autocratic leadership

Advantages

Disadvantages

  • Autocratic leaders can make swift decisions without the need for lengthy discussions

    • Speeds up decision-making

    • Can be crucial in emergency situations

  • Coordination and efficiency may be improved as roles and tasks are clearly stated

  • Reduced employee morale as workers have no input into decision-making

    • Lack of input from team members limits ideas for problem-solving and innovation

  • Limited creativity as employees are required to follow strict instructions and are closely monitored

2. Democratic leadership

  • Democratic leaders actively involve employees in the decision-making process and encourage discussion, though they have the final say

    • Consultation, collaboration, delegation and teamwork are common features 

    • It is most effective in organisations with skilled and experienced employees

    • It works well in creative industries when managers give workers responsibility to work on projects together and manage their own time

  • James Parker, the ex CEO of Southwestern Airlines, is well-known for his democratic style of leadership

    • In his book Do the Right Thing he states “I’ve always tried to expect the best of people and to trust them, and I have almost never been disappointed. Part of trusting people is empowering them to make decisions”

Evaluating democratic leadership

Advantages

Disadvantages

  • Encouraging participation from employees in decision-making processes

    • Can lead to higher levels of employee engagement and job satisfaction

  • Individuals feel valued and empowered when their opinions and ideas are considered

  • Encourages creativity and innovation within a business

    • Employees are more likely to share ideas and think outside the box when they have a say in decision-making

  • Decision-making can be time-consuming as consensus or majority agreement is sought

    • Competitive advantage may be lost as decisions take longer than rivals

    • Making compromises may cause further delays 

  • Conflicts and disagreements may arise when different views are sought

    • Resolving conflicts can be challenging and time-consuming

    • Leaders need to possess strong conflict resolution skills to ensure that disagreements do not escalate

3. Laissez-faire leadership

  • Laissez-faire leaders play a minimal role in managing subordinates or business teams

    • Leaders provide little guidance, direction or supervision to employees

    • Employees have significant autonomy and freedom in making decisions and completing tasks

    • Laissez-faire leadership is most appropriate where leaders are working with a highly skilled and self-motivated team that requires minimal supervision

    • Communication may suffer in this type of organisation as clear direction is not given

Evaluating laissez-faire leadership

Advantages

Disadvantages

  • Laissez-faire leadership can encourage creativity and innovation within the business

    • Employees have the freedom to explore ideas and make decisions independently

    • This allows for diverse perspectives and fresh approaches to problem-solving

  • Employees are empowered because they have autonomy and ownership over their work

    • Team members feel trusted and valued

    • This enhances job satisfaction, motivation, and a sense of responsibility

  • Some employees may struggle with decision-making 

    • This can lead to inefficiency and a lack of coordination within the team

    • Productivity may fall as individuals struggle to prioritise tasks or make informed decisions 

  • Without clear guidelines or standards, there is a risk of inconsistency in the quality of output

    • Different employees may have varying approaches

    • This may lead to a lack of cohesion and potential conflicts in the team

Recommending an Appropriate Leadership Style

Recommending an appropriate leadership style

  • The choice of leadership style can be influenced by a range of factors

    • Business circumstances including the nature and size of the business

    • Aims and objectives to be achieved

    • Personality, experience and skills of the leader

  • In particular, the skills and abilities of the workforce and the nature of the competitive business environment will impact upon the style of leadership adopted

Appropriate leadership styles

appropriate-leadership-styles-cie-igcse-business-rn
The leadership style adopted will depend on the skills of workers and the environment in which a business operates

Choosing the most appropriate style 

  • When a business faces a crisis situation and its workers are unskilled, autocratic leadership is likely to be most appropriate

    • However, if the workers are highly skilled, a democratic approach would be more effective

  • When a business operates in a stable environment and its workers are unskilled, a democratic approach is likely to be most appropriate

    • However, if the workers are highly skilled, a laissez-faire approach would be more effective

  • When a business operates in a high growth/challenging environment and its workers are unskilled, an autocratic approach is likely to be most appropriate

    • However, if the workers are highly skilled, a democratic approach would be more effective

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