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Leadership styles

There are many different categorisations of leadership style. These are rarely found in isolation, but more often in some combination. Here are the ten most common types. Which one does your boss fall into or which ones suit him?

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There is no clearly "right", "one-to-one" or clearly wrong style of leadership. The right style depends on the culture of the company, the personal values of the leader, the market situation, the goals set, the composition of the team. Here's a list of 10.

How the leadership style is different, what the culture is like, what the culture is like, and how the team is different.

Autocratic leadership

The leader decides alone, with less regard for the opinions of subordinates. It is good for quick decision-making, but can reduce staff motivation and creativity. In this region of Europe, such a leader is not uncommon in the SME sector.

Charismatic leadership

A leader is able to influence and inspire employees through personal charisma. He or she develops a strong emotional bond with followers. It can generate great enthusiasm and commitment, but the company or organisation can become overly dependent on the leader's personality. One such leader in the US is Tesla founder Elon Musk.


The leader is not interested in the day-to-day struggles and problems, he only looks at the big picture. He relies on abstract thinking and can envision possibilities that others have not yet seen. Steve Jobs is the great figure of the visionary leadership style.

Transactional Leadership

The leader leads through a system of reward and punishment. There is a high degree of rigour, no side-talk, everything has a positive or negative consequence. It can be effective in achieving short-term goals, but less motivating in the long term.

Democratic leadership

Decision-making is done with the involvement of team members. It can increase employee engagement, satisfaction and team spirit. The disadvantage is that it can slow down processes and "too much democracy" can lead to bad decisions in some cases.

Coaching type leadership

Here the leader is not a boss but a coach, a mentor who develops the team members. He or she helps everyone to achieve their maximum potential. It can improve performance and satisfaction in the long term, but it can be time consuming. In recent years, many companies have moved in this direction in their management training.

Laissez-faire leadership

The leader intervenes minimally. Employees are given great freedom in decision-making. It may be suitable for creative, highly motivated staff who can work independently, but it can lead to chaos if the team is not autonomous enough. Much depends on the company culture to make it work. An IT start-up company may have room for this.

Transformational leadership

The leader motivates employees to achieve common goals. Focuses on innovation, change and personal development. He/she puts a strong emphasis on building on the strengths and potential of team members. Strengthens team cohesion and performance, but can be a heavy burden on the manager.

Servant leadership

The primary goal of the leader is to support the well-being and development of the team and individuals. The leader works hard to create a positive working environment and to achieve long-term commitment. Empathy, listening and a sense of community are core elements.

Bureaucratic leadership

The leader strictly follows company rules and procedures. It can create a secure and stable environment, but it can also make the company extremely inflexible and thus inhibit innovation, which can be dangerous in highly competitive industries. We see examples of this in the Hungarian subsidiaries of some multinational companies.

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