Different bosses tend to use leadership styles to encourage others, provide direction, express goals, and motivate their team. Each style conveys a method of implementing plans and inspiring people. There are several different leadership styles, each with pros and cons. One of the determinants for choosing which leadership is the most effective is your company’s industry or sector.

Generally speaking, there are eleven business sectors, each with subdivisions and quantifiers. They include the energy sector, healthcare, information technology, financials, real estate, utilities, consumer staples, and industrials, among others. These sectors are further broken down into 158 sub-industries. Within each job sector, certain leadership styles tend to be more effective.


A transformational leader inspires those around them by encouraging them to step outside of their comfort zones and embrace change. This might cause some shier personalities to feel uncomfortable. Extroverts will flourish in this type of environment. The culture promotes individual success as well as within a team, where each employee discovers their abilities. This leadership style is a good fit for growing businesses. A downside is keeping track of the successes and challenges of each team member.


The transactional approach is geared for short-term project motivation. Leaders reward achievements, and incentives such as bonuses are offered in exchange for exemplary work. All employees have a clear picture of the goals that need to be achieved. One downside is the potential consequence for poor performers. 


This type of leadership style focuses on sharing authority. Rather than attributing success to a single individual, collective decision-making is the standard. However, without any leadership, some businesses can fray under the pressure of individual conflict and a lack of authority.


On the complete opposite end of the spectrum, autocratic leaders do not consult their team on any decisions. Popular with more old-school, traditional businesses, this style has fallen out of favor among millennials seeking diversity and inclusivity.


Democratic leadership is known as participative because team members are occasionally called upon to participate in decision-making and solve problems that affect the entire company. In today’s culture, employee validation and respect is enormously popular and are some of the perks the younger generation will seek out when job hunting. 


Much like the name implies, this type of leadership is rigid and requires strict obedience to a precise set of rules and regulations. The hierarchy is firmly established, and there is a transparent chain of command. For industries involving dangerous equipment, this structure is essential for employee safety.

This article was originally published at https://stephenpatterson.net/