By Hailey Nguyen
Understanding Leadership Styles
Is one leadership style the best? Not always. It depends on the situation. Before choosing an approach, ask yourself: What is the desired outcome? Do you want to inspire your team? Are you focused on short-term results? Would a hands-off approach be more effective? Once you answer these questions, you can apply the leadership style that best fits the situation.
The Full Range Leadership Model (FRLM), developed by Bernard Bass and Bruce Avolio, provides a structured way to understand leadership influence. This model includes three leadership styles: Transformational, Transactional, and Laissez-Faire. Let’s explore each style, its characteristics, and when to use it.
Transactional Leadership – Best for Structure and Efficiency
What it Looks Like: Transactional leadership is focused on structure, task completion, and clear rewards and consequences. Leaders using this style establish a management hierarchy with well-defined roles and accountabilities.
Key Characteristics:
- Structured Approach – Operates within a clear management hierarchy.
- Defined Goals and Expectations – Leaders set measurable objectives for employees.
- Performance Monitoring – Uses KPIs, metrics, and feedback to track progress.
- Rewards and Consequences – Employees are rewarded for success and corrected for failure.
When to Use Transactional Leadership:
- When efficiency and task completion are top priorities.
- In highly regulated industries where processes must be followed.
- When employees need clear guidance and structure to stay on track.
Pros:
- Ensures consistency and accountability.
- Maintains high productivity and operational efficiency.
- Effective in deadline-driven environments.
Cons:
- Limits creativity and innovation.
- Can reduce employee engagement if overused.
Transformational Leadership – Best for Inspiring and Developing People
What it Looks Like: Transformational leaders inspire their teams by encouraging innovation, personal growth, and a shared vision. They empower employees to exceed their perceived capabilities and contribute to a learning-oriented culture.
Key Characteristics:
- Idealized Influence – Leaders serve as role models and have trust from the team.
- Inspirational Motivation – Communicates a compelling vision.
- Intellectual Stimulation – Encourages creativity and problem-solving.
- Individualized Consideration – Focuses on mentoring and personal development.
- Purpose-Driven Leadership – Aligns everyone with the organization’s mission.
When to Use Transformational Leadership:
- When innovation and long-term growth are needed.
- When employees need motivation and inspiration.
- In dynamic industries where adaptability is crucial.
Pros:
- Encourages innovation and problem-solving.
- Builds strong team commitment and morale.
- Helps organizations evolve and remain competitive.
Cons:
- Requires strong emotional intelligence and communication skills.
- May overlook short-term operational needs in favor of long-term goals.
Laissez-Faire Leadership – Least Effective Style
What it Looks Like: Laissez-Faire leaders take a hands-off approach, allowing employees to work independently with minimal supervision. This style can be effective in certain circumstances but is often seen as passive or ineffective.
Key Characteristics:
- Minimal Involvement – The leader provides little guidance or direction.
- Non-Interventionist Approach – Employees are left to make their own decisions.
- Autonomy-Based Management – Relies on employees being self-motivated and highly skilled.
When to Use Laissez-Faire Leadership:
- When leading highly skilled, independent professionals.
- In creative industries where autonomy fosters innovation.
- When employees are self-driven and require little supervision.
Pros:
- Encourages independence and self-reliance.
- Can lead to innovation in highly skilled teams.
Cons:
- Often leads to confusion and lack of accountability.
- Can result in poor team coordination and missed goals.
Choosing the Appropriate Leadership Style
Leaders must be adaptable, shifting between leadership styles as needed. While transformational leadership is often the most effective in promoting engagement and growth, transactional leadership is crucial for maintaining structure and achieving short-term goals. Laissez-faire leadership should be used selectively and only when employees are highly competent and self-sufficient.
Client Story: The Power of Transformational Leadership
A CEO approached us with a challenge: “I want to inspire my team to perform beyond their perceived limitations while maintaining a positive and supportive environment. I’m great at giving performance feedback and tracking metrics and goals, but I struggle to motivate my team to align with my vision.”
This was not an uncommon concern. The CEO had mastered transactional leadership but lacked the transformational leadership skills needed to inspire his employees. Through a structured coaching process, we identified what an “inspirational leader” looked like for him. He focused on developing those traits – practicing and refining them daily.
While he still used his transactional leadership skills for performance management, he now had a new tool: the ability to lead with inspiration. Over time, his team became more engaged, motivated, and aligned with his vision.
Conclusion: Adaptability is Key
No single leadership style is superior in all situations. The key to effective leadership is adaptability. Ask yourself: In this situation, which leadership style will produce the desired results? By mastering transactional, transformational, and even laissez-faire leadership when appropriate, you can become a well-rounded and highly effective leader.