How 3 different leadership styles can affect employee performance

    CEO of The P3 Group Inc.

    Organizations around the world are currently in a highly competitive environment and employee performance is one of the most important factors in ensuring a business thrives. But without good leadership, most employees will not feel motivated to achieve their goals or work as efficiently as possible. Confidence in leadership, for example, has a huge impact on performance. At least 63% of employees do not trust their leader, which will translate into poor performance over time.

    Effective leadership has certain universal characteristics. It is intentional, aimed at optimizing the company’s overall performance and creating a positive, engaging environment. But there are different styles that leaders can adopt depending on their own strengths.

    3 leadership styles and their effectiveness

    There are three primary types of leadership: democratic, autocratic, and participatory. Keep in mind that no style is inherently better than the other. It depends on your goals, personality and team dynamics.


    Democratic leaders involve everyone in the decision-making process. While they ultimately have the final say, people who adopt this style seek feedback from their teams and use it to inform their decision.

    This type of leadership works in most industries because it has several major benefits. Democratic leadership creates value by letting employees know that their opinion matters. Diversity and creativity thrive in this environment as a result because leader-supported teams build on everyone’s contributions. Finally, democratic leaders build trust through transparency, respect, and accountability. This can increase job satisfaction, morale and productivity of employees.

    However, Democratic leadership has its drawbacks. Gathering feedback from all team members takes time, so it can negatively impact timelines if consensus is not reached immediately. In addition, some employees prefer to leave important decisions to management rather than contribute.


    On the other end of the spectrum, an autocratic leader independently makes all important decisions and then passes them on to the employees. Instead of asking all team members for feedback, these leaders rely on their instincts to help guide methods and processes.

    Autocratic leadership doesn’t work well in all scenarios because it can discourage innovation and collaboration. But it has its advantages. For example, autocratic leaders help to quickly execute short-term performance goals and are adept at managing inexperienced employees.


    Participatory leaders meet amidst the democratic and autocratic styles. They tend to delegate the decision-making process to a few key team members, providing guidance and feedback along the way. These leaders are typically very open-minded and operate from the belief that the team contributes equally to the achievement of the company’s objectives.

    Communication is an important part of participatory leadership. It helps ensure that ideas flow effortlessly with minimal conflict, increasing productivity. Also participatory leaders prioritize cooperation and independence by leaving room for key perspectives to influence the direction of the organization. This leads to more trust and respect and can support more innovation.

    Like democratic leadership, the participatory model may not work for scenarios that require rapid turnaround. While decisions are not influenced by all employees, there are still multiple stakeholders that must agree before anything is done. But participatory leaders are very effective at coming up with creative solutions to achieve medium to long-term goals.

    Is it time to change your leadership style?

    When you create a healthier work environment, employees will be motivated to work more efficiently. So if you want to improve the performance of your employees over time, it is best to invest in the right management strategies. Review your company’s goals and evaluate your current team to determine which approach works best for you. Moreover, don’t feel tied to one style. If you don’t see the results you want, you can always adjust your strategies until you find something that works. Remember, your goal is to create a more effective work environment. If you do, everyone wins! Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?

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