Democratic leaders make the final decisions, but they include team members in the decision-making process.
They encourage creativity, and team members are often highly engaged in projects and decisions. Team members tend to have high job satisfaction and are productive because they're more involved in decisions. Team members feel in control of their destiny, so they're motivated to work hard by more than just a financial reward.
Decisions are made quickly, and work gets done efficiently.
The downside is that most people resent being treated this way.
A charismatic leadership style can resemble transformational leadership because these leaders inspire enthusiasm in their teams and are energetic in motivating others to move forward.
The downside of this leadership style is that it's ineffective in teams and organizations that rely on flexibility, creativity, or innovation.
Because participation takes time, this approach can slow decision-making, but the result is often good.
The approach can be most suitable when working as a team is essential, and when quality is more important than efficiency or productivity.
The difference between charismatic leaders and transformational leaders lies in their intention.
Transformational leaders want to transform their teams and organizations.
Autocratic leadership is often best used in crises, when decisions must be made quickly and without dissent.