Try myPARM ProjectManagement for free!
Logo Parm AG
M
Your registration could not be saved. Please try again.
Your registration was successful. Please check your mailbox and confirm your registration.

Register for testing now!

The Art of Leadership: Finding the Best Leadership Style

The Art of Leadership: Finding the Best Leadership Style

Managers have a wide range of responsibilities. On the one hand, they must ensure that the company’s goals are met. On the other hand, they must also make difficult decisions, communicate effectively, and meet the needs and expectations of their employees. The latter task is particularly difficult, since, according to a study, McKinsey's latest surveyNearly one-third of German employees are considering quitting—36% of them cite poor leadership as the reason for leaving.* This is not surprising, since not everyone who lacks strong leadership skills can reach a leadership position. Many managers face the major challenge of finding a leadership style that suits their team, the situation, and themselves. We’ll explain the different leadership styles and how you, as a manager, can find your own style to confidently lead and motivate your team.

Why is it so difficult to find the right leadership style?

As a manager, it is often difficult to meet all expectations. On the one hand, managers frequently report to the CEO or senior managers, to whom they must meet certain goals. For example, they are evaluated based on sales figures or completed projects. At the same time, however, they are also expected to lead and motivate their team effectively and retain employees for as long as possible. Depending on their background, area of responsibility, and knowledge, employees have very different expectations regarding their supervisor’s behavior. Some want to be guided and told exactly what to do. On the other hand, some people only need occasional support and recognition for their efforts. Furthermore, managers must make decisions that are not always well-received. However, hesitant or uncertain behavior and constant indecision are not qualities desired in a manager. Instead, managers should possess professional expertise, natural authority, persuasiveness, and decision-making ability—and use these qualities wisely depending on the situation, team dynamics, and individual employees. Furthermore, individual personality plays a role in influencing a preference for a particular leadership style. This creates a tension that challenges managers to be convincing in their leadership approach.

Overview of the Different Leadership Styles

There isn't just one leadership style that works in every situation. Therefore, effective leaders must understand the variety of leadership styles and adapt their approach to specific requirements and dynamics. Here are some of the most widely recognized leadership styles:

1. Authoritarian or autocratic leadership style:

Managers with an authoritarian leadership style make all decisions on their own, without involving their employees. They therefore issue clear instructions from the top down. This results in a clear division of roles and a chain of command that enables rapid decision-making. However, an authoritarian leadership style can also quickly lead to resentment, especially if the manager engages in micromanagement.

Practical Application:

  • Effective for crises or time-sensitive projects.
  • Suitable for clear goals and established workflows.
  • Quick decision-making and clear responsibilities.

2. Democratic/cooperative leadership style:

In contrast to the authoritarian leadership style, the democratic leadership style involves employees in decision-making and planning processes. Communication is open, and ideas are discussed collectively. As a result, all team members are involved on an equal footing, and some of the responsibility for tasks is delegated to them. This can increase employee satisfaction but may also lead to slightly longer decision-making processes.

Practical Application:

  • Well-suited for creative projects and innovative solutions.
  • Promotes teamwork and participatory decision-making.
  • Develops a sense of shared responsibility.
  • Increases employee engagement and motivation.

3. Laissez-faire leadership style:

In the laissez-faire leadership style, all responsibility is delegated to the employees. The manager only sets the general framework and communicates the goals to be achieved. Consequently, there is minimal oversight by the manager, and the independence and initiative of team members are emphasized. This allows the team to fully unleash its creativity.

Practical Application:

  • Suitable for experienced and self-motivated teams.
  • Promotes creativity and innovation.
  • Works best when employees are highly qualified and work independently.

4. Coaching Leadership Style:

The coaching leadership style involves helping employees reach their full potential. To this end, their professional and personal development is encouraged. The manager supports and guides employees on how to achieve their goals and offers advice on how to improve their performance.

Practical Application:

  • Promotes employees’ professional and personal development.
  • Can increase employee engagement, leading to better performance.
  • Emphasizes a collaborative and trusting relationship between the manager and the employee.

5. Charismatic leadership style:

Charismatic managers make an impression with their personality and charisma. As a result, they inspire their employees and motivate them to do their best. Employees trust the manager, and there is a strong sense of unity within the workforce, as all employees are working toward the same goal. However, a charismatic leadership style cannot be consciously chosen or learned. You either have the necessary charisma naturally, or you don’t.

Practical Application:

  • Suitable for promoting the company's culture and values.
  • Can be effective in environments with creative or innovative projects.
  • Emphasizes the importance of the personal relationship between the manager and the employee.

The choice of an appropriate leadership style depends on various factors, including the situation, the team's composition, and the organization's goals. An effective leader can flexibly employ and adapt different styles to achieve optimal results.

Self-Analysis: The Foundation of Effective Leadership

A key to effective leadership is the ability to engage in self-analysis. A person’s leadership qualities depend largely on their understanding of their own strengths, weaknesses, values, and personality traits. Therefore, a leader should take the time to conduct a self-analysis, especially if they are new to a leadership role.

  • Reflection on Values and Beliefs: Leadership is based on personal values and beliefs. Ask yourself what your core principles are and how they are reflected in your leadership style. This also involves thinking about how you make decisions or how you give feedback to your employees—both criticism and praise.
  • Identifying Strengths and Weaknesses: As a manager, it’s also important that you have a clear understanding of your strengths and weaknesses. To do this, observe how you behave toward your employees. This will help you quickly determine which leadership style best suits you as a manager and which ones do not align with your own strengths and weaknesses. It’s important to be very honest with yourself during this analysis and to acknowledge your weaknesses. Only then can you lead your team authentically.
  • Seeking Feedback: You should also ask your colleagues, employees, and supervisors for advice in order to receive constructive feedback. It often happens that a manager’s behavior has a completely different effect than the one that was actually intended. Other perspectives therefore help to uncover blind spots and, in turn, help you understand your own leadership style.
  • Developing Self-Awareness: In addition, a manager should be aware of their own emotions, motivations, and behavioral patterns. For example, you should know how you react to stress or intense pressure. If you understand your own reactions, you can, for instance, learn to take a step back and avoid saying or doing something rash that could harm the team. In this way, you can continue to grow and become an excellent leader.

What does the team need?

Many people make assumptions about others. For example, if a manager prefers maximum flexibility, he or she often assumes that this also applies to the team. However, the team or individual team members may prefer clear rules that they can follow. A manager should therefore also find out what the team and individual employees want. It can be helpful to speak with individual employees and ask them directly about their expectations regarding leadership behavior. This way, you can find out what the employee needs from the manager.
However, it is also important to take the employee’s specific activities and skills into account. For example, a directive leadership style may work well for routine tasks, while it tends to be counterproductive for more complex activities that require creativity. Employees’ skills, knowledge, and expertise also influence the appropriate leadership style. For example, a new employee generally requires a different leadership style than someone with years of experience. Furthermore, employee motivation can vary greatly, with some completing their tasks on their own initiative while others need direct instructions.

Adaptation to the situation

The next step is to align the leader’s personality with the team’s needs—that is, to find a leadership style that provides the team with the necessary support while also aligning with the manager’s preferences. It’s important to note, however, that even if a manager has found an optimal leadership style for a team, it may not work in every situation. The ability to adapt one’s leadership style to the situation at hand is therefore crucial to a manager’s long-term success. It is therefore important for a manager to always consider the current circumstances and to be aware of the team’s dynamics, its goals, and the individual skills of the employees in order to respond flexibly. This is particularly important in the following situations:

  • Crisis Situations: In crisis situations, an authoritarian leadership style may be necessary to provide clear instructions and make quick decisions. For example, if a project is in danger of failing, swift action must be taken. Even though a democratic or laissez-faire management style usually works, it may be inappropriate during a crisis.
  • Fostering Creativity: Even teams that typically perform routine tasks and are managed in a more authoritarian style can be challenged with new tasks that require a higher degree of creativity. For example, when work processes need to be optimized. In such creative projects, a democratic leadership style can foster greater participation and an exchange of ideas.
  • Experience within Teams: A newly formed team certainly requires much more guidance from the manager than a highly experienced team, which would be more likely to become demotivated by excessive control. Therefore, it is necessary to adapt the leadership style. If the team and the manager remain in the same configuration for a long time, the manager must adapt to the team’s accumulated experience and grant a more experienced team greater freedom. This also applies when a new manager joins a self-motivated and experienced team. If the new manager places too many restrictions on this team, it could become demotivated.

At first glance, a situational leadership style may seem more complicated than it actually is. If you know your strengths and weaknesses, carefully analyze the current circumstances, and take into account the skills and maturity of your employees, you will quickly learn to determine which leadership style is necessary and best suited to the situation.

Key Principles of Leadership

  • Communication and Feedback: Open and transparent communication is the foundation of good leadership, regardless of which leadership style a manager prefers. This is the only way to avoid misunderstandings and ensure that tasks are completed smoothly. This also includes managers listening to their employees and fostering a feedback culture based on trust.
  • Be a Role Model: As a manager in particular, you are always a role model for your employees. Managers should therefore live up to and embody the standards they expect from their employees—such as transparent communication, open feedback, keeping promises, and admitting mistakes. This way, employees can respect their manager and always know where they stand.
  • Empathy: Empathy requires the ability to put oneself in another person’s shoes and understand their perspective. Empathetic managers are always aware of their own emotions and recognize the emotions of others. This enables them to learn how to respond appropriately and to develop themselves and their leadership style.
  • Delegating Responsibility: An authoritarian leadership style and micromanagement are no longer very popular these days. Even though this type of leadership may be justified, for example, during times of crisis, very few employees want to feel that everything they do is being closely monitored and evaluated. However, when a manager delegates some of the work, employee satisfaction and motivation can increase, and at the same time, the manager has more time for other tasks.
  • Conflict Resolution: Conflicts or misunderstandings arise in every team at some point. A good manager addresses these conflicts as early as possible and finds solutions to defuse such situations before they escalate into a bigger problem.

Conclusion

In the multifaceted world of leadership, there is no single leadership style that always works best. Rather, successful leadership requires a harmonious interplay of different styles that can be adapted to the situation at hand. The key components—communication, empathy, feedback, and continuous development—form the foundation for effective leadership that fosters not only individual growth but also the success of the team.

To facilitate the implementation of these leadership principles, myPARM’s CorporateNavigator leadership software can be a valuable resource. It provides support for planning and implementing corporate strategy, making decisions, and achieving goals. At the same time, the software enables seamless communication. For example, managers can assign tasks to employees, and employees can report on the progress of those tasks. In this way, myPARM CorporateNavigator simplifies the monitoring of employee activities.

Learn more about the myPARM CorporateNavigator management software:

Would you like to see a demo of myPARM CorporateNavigator? Then schedule an appointment with us today!

Your registration could not be saved. Please try again.
Your subscription was successful. Please check your mailbox and confirm your registration.

Newsletter

Subscribe to our monthly newsletter and stay informed about Parm AG products, news, trends in project management as well as offers and events.

M