What kind of leader are you? 7 types of leadership styles
Posted on: 9 June, 2025
Knowing what type of management style you have – and what kind your organisation needs – can make you a more competent leader.
Effective leadership in the built environment can determine the success of a project, ensuring that deliverables are executed on time and within budget. But the role of a leader goes beyond just hitting targets. A true leader inspires and empowers others, and knows how to engage with workers at every level.
Positive engagement is key to driving efficiency, sustainability and safety in our sector. Yet, according to Gallup’s State of the Global Workplace Report, low employee engagement costs the global economy a huge $8.9 trillion in lost productivity.
Poor leadership also has a devastating effect on employee morale, impacting an organisation’s ability to retain top talent, so investing in leadership training is something that we cannot overlook.
But what types of leadership are there? And which leadership style is the most effective for construction projects?
7 types of leadership styles
There are many different types of leadership styles to explore if you are preparing for a career in management. It’s important to note that each of these styles has its own unique pros and cons to consider. Here are 7 of the most common forms of leadership in the workplace:
1. Authoritative leadership
This is perhaps one of the most well-known management styles, as it has been applied across every industry and sector for many years.
Authoritative leaders provide clear expectations about what needs to be done. While many businesses are moving away from this form of leadership, and more companies are choosing a people-focused culture, autocratic leadership can still provide value in certain situations.
For instance, for project delays or problems with scope creep where decisions needed to be made quickly, authoritative leadership could prove to be beneficial for getting things over the line. However, this type of management can stifle creativity and be prone to abuse of power.
2. Democratic leadership
While a level of autocracy may be useful for quick decision-making, democratic leadership is highly effective for long-term construction projects. This is because democracy at work involves creating consensus, and this means being able to gather input and gain a diverse range of ideas and perspectives.
This form of leadership nurtures creative problem-solving, often leading to greater outcomes and better quality deliverables for the client.
3. Delegative leadership
Also referred to as “laissez-faire leadership”, this style is more relaxed, allowing more freedom for employees to carry out their tasks in the way they see fit. While delegative styles can work well for managing a team of highly qualified experts, it’s not suitable for every situation.
One of the biggest risks of laid-back leadership styles like this one is a lack of direction for teams. Construction businesses are often under a lot of pressure to deliver projects on time and within budget, so having clear goals and objectives is key to project success.
4. Transformational leadership
Recognised by many as the single, most effective style, transformational leadership requires an emotionally intelligent manager at the helm.
Transformational leaders focus on motivating and inspiring team members, often paying special attention to each individual’s personal growth and development. The idea is to support workers to help them reach their full potential, creating a more harmonious culture where people strive for continuous improvement.
Studies show that this management style has a positive impact on a number of factors, including better team performance, an increase in organisational citizenship behaviours, higher levels of engagement and psychological empowerment.
5. Transactional leadership
Built on a results-driven model, transactional leadership uses rewards and penalties to achieve short-term goals. This style works best in highly structured environments where consistency and well-defined processes are required.
For example, this could prove useful in construction when executing routine tasks for a build project. It can provide clear expectations for workers and create incentivised programs to achieve desired results.
However, for much larger projects, transactional leadership can be too rigid, leaving little room for creativity or innovation and relying heavily on monetary rewards rather than intrinsic motivation.
6. Servant leadership
By serving the greater good, this type of leadership style ensures that everyone in the team feels heard. According to research, prioritising the needs of the employees means that individuals are 4.6x more likely to perform to the best of their abilities.
Workers are nurtured, with tools, advice and support to help them learn and grow – while also bringing their own expertise and ideas to the table. For construction companies with a long-term goal of attracting and retaining the right talent, this management style could be effective.
7. Situational leadership
Based on a flexible framework, this unique leadership style adapts to its environment, and also the needs and skills of its team. With situational theories of leadership and management, no one style is suitable for all situations – so leaders are required to tailor their approach accordingly.
The effectiveness of different types of leadership styles used in construction will depend on the nature of the project and its complexity, as well as available skills and resource. With this in mind, a flexible framework could be the most effective approach for anyone working in the built environment.
Why choosing your leadership style matters
Self-awareness is a very important trait for leaders in working in the built environment, and knowing your own leadership style is a great start to understanding more about yourself.
By reflecting on how you manage people and projects – and the pros and cons of your style – you’ll be able to adapt your methods and address any weaknesses you have in any situation.
Plus, having a consistent style, or at least a consistent framework if you choose an adaptive style, will help others understand what to expect from you. This can reduce frustration, improve communication, and make it easier for teams to follow processes and procedures.
With the mounting pressures in the construction sector, it’s more important than ever to have leaders who can apply leadership styles effectively to drive forward positive change. And for any construction companies undergoing digital transformation or the green transition, the right leadership is critical to ensuring smooth and successful change management.
How to identify the right leadership style for you
While personality traits can naturally align people with certain styles, leadership styles are not predetermined. This means you can choose the style that works best for you, your team, and the business.
Here are some ways you can explore which types of leadership styles are suitable for you:
Establish your core values as a leader
What do you care most about as a manager or mentor? Do you want to get tasks completed on time and within budget? Do you want to encourage personal growth and development so everyone works to the best of their ability?
Understand the existing challenges
Each business and each construction project will have its own unique set of challenges. If creativity and innovation have always been lacking, a democratic style may be able to foster better blue-sky thinking. Or if you’re struggling with effective change management and you’re met with resistance, a transformative approach may be the most beneficial.
Learn from leaders you admire
Follow in the footsteps of the managers who brought out the best in you. Learning from the best (or worst) will inform your methods and give you a good starting point in choosing the most suitable style.
Try different approaches
One of the best ways of discovering your own management style is to try different ones to see which works best. Just remember – the best style doesn’t just need to work for you and the goals of the business, but it also has to work for the people you’re managing.
Ask your team for feedback
If you want to know if your leadership style is being well-received, gather feedback and be open to suggestions. Finding the right style can be a learning curve, and this means adapting it as you go along, and allowing team members to share their thoughts.
Do great leaders just have one style?
Consistency can be very useful in establishing a signature style, but many great leaders don’t just stick with one style. There’s no one-size-fits-all in the built environment, and being a leader in our sector requires consideration of a number of factors.
In practice, the most successful construction leaders often blend different styles depending on who they’re managing and what the situation is. For this reason, situational leadership can sometimes be the best approach. But whichever management styles you choose, a little bit of flexibility will allow you to adapt and remain reactive in an ever-changing sector.
