What Type of Business Leader Are You?

//What Type of Business Leader Are You?

What’s your leadership style? While there are many variations and combinations of leadership styles, there are seven general types. All of these leadership styles have both some benefits and some areas for improvement. Read our blog to discover more: 

Bureaucratic Leaders

This kind of leader enforces policies, procedures, and rules. Under this type of leadership, employees are not inspired and often tend toward rebellion. However, these leaders do well in environments where safety is important, such as a factory or construction site. 

Coaching Leaders

A coaching style of leadership is characterized by partnership and collaboration. This approach works well in companies with high employee retention rates so that the time spent on their development eventually pays off for the employer. Conversely, coaching leadership does not work as well in companies with high levels of turnover. 

Autocratic Leaders

Autocratic leaders make decisions with little input from their employees. They normally make choices based on their personal view and rarely accept advice from followers. While this approach is not ideal for the long-term growth of a company, it works well during a crisis when there is no time to debate options. 

Democratic Leaders

The person who leads democratically builds a strategy around the people most impacted by the outcome. This approach is useful for high-impact decisions where the collaboration of a large number of people is needed to create initial success. However, it can take a long time to build a consensus, which can be frustrating for those involved in the decision-making process. 

Paternalistic and Maternalistic Leaders

Acting as a father or mother figure in the workplace, this leader shows great care for their employees. In return, employees are more likely to stay with the company for a long period of time. While this approach leads to a highly committed workforce, the leader can subvert it with favoritism. 

Transactional Leaders

Transactional leaders enter into agreements with their employees. If employees do not achieve their stated goals, the leader can reduce their pay or position. While this approach does not do well in a fluid environment where flexibility is required, it works well in a rigid, hierarchical organization. 

Transformational Leaders

Transformational leaders are characterized by their ability to inspire others with their vision. They motivate employees to look beyond their own interests, create a shared vision, and encourage new ways of looking at problems. These leaders are enthusiastic, value-driven, and lead with trust. Transformational leaders thrive in organizations ready to embrace change but have little effect in a more staid organization.

Find Your Next Leader with AAFA

Partner with the American Association of Finance and Accounting with over 50 affiliates in the United States and Canada. We believe in networking to provide a better recruiting experience. Our affiliates focus on relationships over placements and can help find your next candidates. By partnering with AAFA, we expand our network and collaborate with forward-thinking accounting and finance companies to build and maintain talented teams. Not only does AAFA assist client companies in recruiting, but they also help candidates advance their careers in finance and accounting. Find an AAFA affiliate near you: aafa.com.