Unit 3: Leadership Styles

3a. Explain the variety of leadership styles, such as situational leadership, and their similarities and differences

  • Why is it important to use a different leadership style depending on the situation?
  • Can using a laissez-faire approach be useful in some situations?
  • What is the difference between task-centered and employee-centered leadership?

In this section, you learned about the different types of leadership styles. While there are many styles, it is important to note that most leaders tend to lean toward one style or another. However, it is good to consider various leadership situations and which style might be best for a given scenario.

Leaders tend to be either task-centered or employee-centered. Task-centered leaders are focused on the tasks that need to be done and the elements required to get the tasks done. Employee-centered leaders focus on relationship-building and supporting employees. Many leaders combine both of these qualities to be effective. 

Another leadership style is autocratic, democratic, or laissez-faire. Autocratic leaders tend to make all of the decisions without employee involvement. Democratic leaders involve employees in decision-making processes, while laissez-faire leaders are hands-off and allow employees to make decisions independently. The choice of style used is often dependent on the situation. 

Some models look at the best leadership style depending on the situation and other factors. Fielder's Contingency Model looks at three elements, leader-member relations, task structure, and leader position power, to determine the highest performance and to help leaders understand when a more task-centered approach should be used versus an employee-centered approach. Similarly, the Path-Goal Theory addresses situational forces, such as the employee's characteristics and the leader's behavior, to determine the best approach. Among these approaches are supportive, directive, participative, and achievement-oriented leadership. 

Transformational leadership inspires others with vision, while servant leadership focuses on employee development.

To review, see:


3b. Examine the leadership styles and entrepreneurial leadership effectiveness based on the traits and behaviors of successful leaders

  • How might you see authentic leadership in practice?
  • What elements of destructive leadership should we be concerned about as leaders?
  • What makes an ineffective leader?

Authentic leadership is the idea that leaders symbolize four unique components. The first is self-regulation, internal moral values and principles, balanced processes in decision-making, transparency, and a leader's self-awareness. It has been found that authentic leadership can generate higher productivity and creativity in organizations, which, of course, is essential for entrepreneurs.

Often, the reasons for poor or negative sides of leadership are a result of destructive leader behaviors and the effects of these behaviors on followers. Destructive leadership is focused on dominance, coercion, and self-orientation, while ineffective leadership is often a result of the leader's incompetence, rigidness, or lack of self-control. As a follower, these leadership styles can produce job dissatisfaction and reduce employee commitment, stress, and loss of trust. 

To review, see Authentic Leaders and Being a Follower.


Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

  • authentic leadership
  • autocratic leaders
  • democratic leaders
  • destructive leadership
  • employee-centered leaders
  • Fielder's Contingency Model
  • ineffective leadership
  • laissez-faire leaders
  • Path-Goal Theory
  • servant leadership
  • task-centered leaders
  • transformational leadership
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