Foundation 8 of 20 · Lead
Some People Need Direction. Some Need You Out of the Way.
"Which one of us is doing it right?" Do you take over, or do you step back? Either way, you are right about half the time. Here are the three types of leadership styles every small business owner uses, and how to pick the right one for each person and task.
Last Updated: 10/25/2026 · Written by Dr. Paul Borosky, DBA, MBA
The Short Answer
What Are the Types of Leadership Styles?
Textbook Definition
A leadership style is the characteristic way a leader provides direction, makes decisions, and supports people. Common models include directive (autocratic), participative (democratic), and delegative (laissez-faire) styles.
In Plain English
Your leadership style is how you direct and support people. Directive means you decide and give clear instructions. Participative means you involve the team. Delegative means you step back and let skilled people decide how. No single one works for everyone.
Why It Matters
Why Does One Leadership Style Not Fit Everyone?
Most new leaders get stuck in one gear, usually whichever one feels comfortable. The controller directs everybody, including the experienced person who just wants to be asked. The trusting boss steps back from everybody, including the new hire who has no idea what to do. Each one is right half the time. That is the problem.
Use the wrong style and you frustrate your best people and fail your newest ones, often on the same day. The fix is not finding the one right style. It is learning to choose, task by task and person by person, based on experience and risk.
Signs you have this problem:
- An experienced employee quit and said they wanted to be asked, not told.
- A new hire made a costly mistake because nobody gave clear instructions.
- You lead every person the exact same way.
- You narrate every step, or you never check in at all.
- Your two managers argue about whose way is right.
- People who know more than you about a task still wait for your approval.
What It Looks Like
What It Looks Like When Each Leader Has One Gear
From the Fabled Forest · Chapter 8
The Crandall Twins run a lock and security company, split down the middle. Sheldon believes in control and narrates every move his crew makes. Percy believes in trust, hires good crabs, and leaves them alone. They have argued across the workbench for years about who is right.
On one job, both styles failed in the same morning. Sheldon's most experienced locksmith put down his wrench and walked out. Percy's newest hire, on her fourth day, locked a customer's vault with a code nobody knew, because nobody had told her what it should be.
Each twin pointed at the other. Doctor Owl pointed out that both employees had already told their bosses exactly how they needed to be led. They were not asking for the same thing.
The twins' story is Chapter 8 of Management and Leadership for Small Businesses, Book 1 of Dr. Paul's Fabled Forest Business School Series.
The Fix
How to Choose the Right Leadership Style in 4 Steps
Two questions before every hand-off. Then pick the style that fits.
Ask how experienced this person is at this specific task.
Not in general. At this task. A veteran on a new kind of job may need more direction than you think.
Ask what happens if it goes wrong.
Low risk leaves room to learn. High risk, like a safe, a big customer, or anything unsafe, calls for more direction, at least the first time.
Match the style.
New person or high risk: direct. Decide and give clear instructions. Skilled person on familiar work: involve them. Ask how they would do it. Expert on routine work: step back. Hand it over and let them decide how.
Check how it went, and adjust.
The style is not a label you give a person forever. As people learn, move them from directed, to involved, to trusted.
Dr. Paul's Insight
The most common mistake is using the same style on everyone because it is the one that feels comfortable to you. If you lean toward control, practice asking "how would you do it?" If you lean toward trust, practice telling the new person exactly what you need, step by step. Both feel awkward. Both work.
Sample: The Leadership Style Picker
Run any task through these rows before you hand it off.
| New to the task, or high risk | Directive. Decide and give clear, step-by-step instructions. Watch the first one. |
| Skilled, familiar work | Participative. Make the plan together. Ask how they would do it, and use their answer. |
| Expert, routine work | Delegative. Hand over the job and the decisions. Check the result, not the method. |
| After the task | Did the style fit? Next time, give a little more trust, or a little more direction. |
Sample for illustration. The same person can need different styles for different tasks.
The Shortcut That Costs More
Do Not Lead at All? Just Set a Number?
In the book, a company called Talon and Beak keeps offering owners shortcuts. Every one is legal. Every one sounds reasonable. Every one costs more than it saves. Here is the one in Chapter 8.
Do not lead at all. Set a number and replace whoever misses it.
No meetings, no training, no time spent on people. The numbers look sharp.
Nobody tells you anything true, because the truth gets them fired. And the best people leave first, because they can work anywhere.
A number is not leadership. People need direction, involvement, or room, depending on who they are and what they are doing. Skip all three and you lose the truth and the talent.
Watch
Video: Directive, Participative, or Delegative?
What Are the Types of Leadership Styles? Directive, Participative, Delegative
Dr. Paul runs three real-looking tasks through the style picker on screen.
From the Book
What Did the Best Locksmith Need?
Chapter 8 · Leadership Styles
Bolt It Down, Back It Up: Two Crabs' Standoff
At ten o'clock, Hank put down his wrench.
He did it very gently.
"Mr. Crandall," he said. "I've been setting locks for six years. I don't need to be told which bolt goes in first. I need somebody to ask me what I think, once in a while." He nodded politely to the framer. "Ma'am. Good luck with your door." And he walked out.
Could Sheldon get Hank back, and what did the newest crab need instead? Read how the twins learned to choose in Chapter 8. Book 1 of Dr. Paul's Fabled Forest Business School Series.
Get the Book on Amazon →FAQ
Leadership Style Questions
What are the three main leadership styles?
Which leadership style is best?
What is participative leadership?
Can a leader use more than one style?
Keep Going
Related Foundations
Choosing how to lead touches almost everything a manager does with people. These five come up most. New to a term on this page? Every one is in the small business management glossary.
Foundation 2 · Delegation
Delegative leadership only works if you hand over the authority too.
Foundation 13 · Communication
Participative leadership needs meetings that actually decide things.
Foundation 15 · Employee Motivation
Being asked what you think is one of the strongest motivators there is.
Foundation 16 · Organizational Structure
Every lead on your org chart will need to choose a style.
Foundation 20 · Change Management
Leading people through a change takes all three styles.
Written by Dr. Paul Borosky, DBA, MBA, business consultant, author, and educator with 14+ years and 1,000+ clients served. Not sure whether your style is helping or hurting? Dr. Paul works with owners one-on-one.
This page is for general educational purposes only. It is not legal, financial, tax, accounting, or other professional advice. Dollar figures are illustrations. The Fabled Forest and its characters are fictional. For decisions about your own business, consult a qualified professional.