The most common leadership styles are:
Transformational
Often considered the gold standard of leadership styles, transformational leadership focuses on inspiring your team members and providing them with the coaching they need to excel without a lot of supervision or micromanaging. These are particularly good qualities for a leader in any field that relies on innovation.
Transactional
Transactional leaders are all about incentives and disincentives. If your people perform well, you reward them (with bonuses, better offices, awards, etc.). If they perform poorly, you punish them (with the withholding of bonuses, demotions, privilege revocations, etc.). While many leaders, especially in the sales world, are transactional, this leadership style tends to be ineffective in less competitive settings.
Democratic
Leaders who are democratic prefer to lead by consensus. They often listen carefully to the ideas of team members and use that input when making decisions. If you have a talented team, a democratic leadership style can help ensure you don’t miss the best ideas.