Is there a ‘best’ leadership style?

Leaders who understand and can apply multiple styles are far more adaptive and prepared to tackle the complexities of modern workplaces, writes Darius Pfitzner.

HR leaders know better than anyone that leadership styles have the potential to significantly shape team engagement, collaboration, and overall organisational performance. Knowing how and when to use different leadership approaches gives leaders the flexibility to address various challenges, whether it’s launching a new project, stabilising operations, or navigating a crisis.

First, let’s take a look at five leadership styles – transformational, transactional, servant, authentic, and ethical – and then discuss why utilising a blend of a few different styles can be far more powerful than sticking with a single approach.

Transformational leadership

Transformational leadership is one of the most well-known leadership styles, and it’s easy to see why. Transformational leaders motivate their teams by setting a clear vision and encouraging new ideas. Employees working for this type of leader often feel happier and more motivated at work because they’re trusted to make meaningful contributions. This style can work well in dynamic industries that value creativity and adaptability.

Transactional leadership

In contrast, transactional leadership is about structure, clear expectations, and regular feedback. This approach is based on well-defined roles and rewards, which means everyone knows exactly what’s expected of them. It might seem less exciting, but it can work effectively in environments where precision, consistency, and reliability are essential.

Servant leadership

This style puts employees first, focusing on their needs, wellbeing, and professional development. Leaders who adopt this style create trust, build supportive workplaces, and encourage personal growth. Recent research, such as the work done by Associate Professor Mulyadi Robin from the Australian Institute of Business (AIB), shows the significant benefits of servant leadership. Professor Robin’s studies have shown that servant leadership boosts a range of employee outcomes, including employee engagement and organisational performance. This style can be ideal for building a positive long-term culture, navigating crises, and leading high-performing teams.

Authentic leadership

Authentic leadership is a values-driven leadership style centred on self-awareness and the development of genuine relationships, with a focus on trust and transparency. However, while servant leadership prioritises the needs of followers, authentic leadership focuses on the leader’s integrity and values.

Authentic leaders have a deep self-awareness of their values, strengths and weaknesses, allowing them to remain true to themselves. This builds trust and credibility with followers and creates a strong organisational culture built on mutual respect. Employees are more engaged when they perceive their leader to be authentic and consistent. This can be ideal for organisations where transparency and strong values are essential, such as during periods of organisational change.

Ethical leadership

Ethical leadership is gaining momentum as organisations face increasing scrutiny over their social and environmental impact. Ethical leaders prioritise fairness, integrity, and corporate social responsibility, ensuring that decisions are made with moral principles in mind, not solely what is best for the bottom line. They champion diversity, inclusivity, and sustainability, creating workplaces where employees feel safe, valued, and motivated to contribute to a greater purpose. This leadership style can be very useful in building long-term trust, strengthening brand reputation, and driving meaningful change in industries where corporate ethics are under the spotlight.

Why 5 is better than 1

Leaders who understand and can apply multiple styles are far more adaptive and prepared to tackle the complexities of modern workplaces. For instance, you might use transformational leadership to galvanise your team around a big project launch. Then, once the project is underway, transactional leadership’s clear expectations can help keep daily operations on track.

Balancing these different styles provides a wider set of tools to handle shifting business landscapes. Leaders who continuously refine their approach by studying, practising, and seeking feedback are better equipped to build trust and guide their teams to success. Ultimately, organisations that invest in helping managers learn to shift smoothly among styles see stronger performance, better employee satisfaction, and greater long-term resilience.

In today’s fast-paced and competitive climate, the ability to pivot leadership styles based on context is a must. By blending them thoughtfully, leaders can unlock higher levels of motivation, productivity, and innovation across their workforce. HR professionals can champion this versatile approach by providing training, mentorship, and resources that equip leaders to adapt. The result is a more dynamic, high-performing organisation with teams that respect each other – and their leader.

Darius Pfitzner is a dean at the Australian Institute of Business.