The 5 Leadership Styles: How Leaders Shape Team Health

Let me tell you a story about a company I once worked for.

It started out amazing—truly. The culture was warm. Leadership cared. People smiled in the halls, not just on the company website. It felt like a family. I was proud to be there.

But everything changed one day. Not gradually. Not subtly. There was a clear shift, and the ripple effects were immediate.

A beloved leader retired. A new leadership team stepped in. And the heart of the company disappeared. What once felt collaborative and empowering slowly turned into something cold and controlling.

That experience became one of my greatest teachers.

It showed me that leadership energy shapes everything.

Let’s explore the 5 leadership styles I’ve seen in action—and why knowing them can make or break your team’s health.

1. Autocratic Leadership (When Control Replaces Trust)

Autocratic leadership is all about control.

This style runs on top-down decisions, strict rules, and very little room for discussion. Employees are expected to follow orders without asking questions.

In my experience, the shift into autocratic leadership happened fast. Feedback was no longer welcomed. Employees weren’t consulted. And fear-based decisions became the norm.

At one point, a company-wide policy came down with no warning and no room for personal choice. The message was clear: comply, or leave.

Autocratic leadership:

Shuts down creativity
Erodes trust
Raises anxiety and burnout

When people feel powerless, they disengage. I saw it with my own eyes.

2. Democratic Leadership (The Style That Builds Loyalty)

Before the shift, this company had something beautiful—democratic leadership.

Leaders invited conversation. They asked for input. They paused to ask, “What do you think?”

When people feel heard, they buy in. They show up. They stay longer.

Democratic leadership:

Encourages collaboration
Builds confidence
Helps employees feel like valued contributors

I’ve worked with companies that lead this way, and you can feel the difference. It’s safer. It’s smarter. And it works.

If you’re in a leadership role today, I encourage you to ask:

“Am I making decisions alone—or inviting my team into the process?”

3. Transformational Leadership (My Favorite Style)

This one is near and dear to my heart.

Transformational leaders inspire people to grow.

They see beyond the job title. They see potential.

One of the best leaders I’ve ever worked with used to say things like:

“You’re ready for more.”
“Let’s get you trained for the next level.”
“You have what it takes.”

And those words made all the difference.

Transformational leadership:

Cultivates future leaders
Builds confidence
Improves performance through belief

This is the kind of leader I strive to be in my own business. Not just guiding people—but growing them.

4. Laissez-Faire Leadership (Freedom or Frustration?)

Laissez-faire means “let them do.”

This leadership style gives employees a high degree of freedom. Leaders stay out of the way and let the team figure it out.

Sounds great in theory—and for some teams, it is.

But too much freedom with too little direction? That leads to confusion. Delays. Disconnection.

I’ve worked with companies that leaned too far into this. Projects lacked clarity. Employees felt unsupported. And high-performers started to burn out—because no one was helping steer the ship.

Laissez-faire leadership:

Works best for experienced, self-driven teams
Fails when support and structure are needed
Can feel like leadership is missing in action

The takeaway? Freedom is important—but guidance is still essential.

5. Servant Leadership (The Style That Changes Everything)

Servant leadership flips the hierarchy upside down.

Instead of asking, “What can my team do for me?” this leader asks,

“How can I help my team succeed?”

These leaders:

Remove obstacles
Support growth
Show up for their people

I’ve experienced this leadership style, and it’s powerful. It creates psychological safety. It builds trust quickly. And it inspires people to do their best—not because they have to, but because they want to.

Servant leadership:

Prioritizes team well-being
Strengthens loyalty and culture
Leads from love, not fear

This is what I believe leadership was meant to be all along.

So… What’s Your Leadership Style?

Whether you’re a CEO, a wellness coach, a project manager, or a parent—you’re a leader.

And your leadership style matters more than you think.

When I experienced a leadership shift in that company, it didn’t just change my day-to-day. It affected my nervous system. My sleep. My mental health. My confidence.

That’s how deeply leadership impacts people.

So ask yourself:

Am I empowering or controlling?
Am I available or absent?
Am I leading with heart—or from fear?

Because your energy sets the tone for your whole team.

What Happens When Leadership Goes Wrong

Let’s be real: poor leadership doesn’t just hurt people.

It hurts business.

The company I worked for saw:

Decreased engagement
Higher turnover
Less innovation
More burnout

Leadership isn’t just about KPIs. It’s about people.

And when you forget that, culture crumbles—even if your brand looks shiny on the outside.

Leadership Is a Daily Choice

Here’s the truth:

You don’t have to be perfect to be powerful.

You just have to be present.

You just have to care.

You just have to keep choosing integrity, over and over again.

The best leaders I’ve ever worked with weren’t flashy. They were consistent. Kind. Curious. Human.

They asked good questions. They gave credit. They checked in. They knew how to say, “I don’t know, but let’s figure it out.”

That kind of leadership changes lives.

Want to Build a Healthy, Happy Team?

If you’re ready to lead with heart and create a team culture where people thrive—not just survive—I can help.

I coach leaders and teams on building wellness from the inside out.

That includes nervous system regulation, healthy communication, and leadership that actually aligns with your values.

Want to explore more?

Because the world doesn’t need more policies.

It needs more people-first leaders.

#LeadershipMatters #WorkplaceWellness #ServantLeadership #TransformationalLeadership #HealthyTeams #TeamCulture #WellbeingAtWork #BurnoutRecovery #MindfulLeadership #LeadershipLessons

About Kathie Owen

Kathie Owen is a corporate wellness consultant, mindset coach, and speaker with over 25 years of experience in fitness, leadership, and personal development. After navigating the emotional toll of working under toxic leadership, she turned her pain into purpose—helping individuals and organizations build thriving, people-first cultures.

Through her signature programs, high-impact workshops, and private coaching, Kathie teaches leaders how to reduce burnout, boost engagement, and create teams that actually want to come to work. Her coaching is rooted in heart, integrity, and lived experience.

Balance, simplicity, and nervous system health are the pillars of her work—because strong leaders start with strong foundations.

Follow Kathie on Social Media

Transcript from today:

Okay. Okay. Hey friends, and welcome back. I'm so glad you're here. Today's topic is one I've been wanting to talk about for a while because I lived it deeply, personally, and it changed everything I believe about workplace wellness. We're diving into the five leadership styles that shape a team for better or for worse, and I'll be sharing the story of a company I once loved. You're listening to Kathie's Coaching podcast. I'm your host, Kathie Owen. In today, you're gonna learn why leadership energy matters. How to spot a toxic shifts early and which style creates thriving happy teams. If you've ever wondered, is it me or is this place just draining? This episode is for you. Let's start with this story. I worked at a company called OCuSOFT It was a company I loved. Until I didn't. And honestly, I loved it. I mean, I truly loved it. The culture was healthy, the leadership was kind. I felt valued and appreciated. Our CFO at the time was one of the most incredible leaders Ave ever worked with. He listened, he led with calm authority, and he truly cared about the people. Our CEO, she was the same way. Approachable, warm, walking the halls and checking in on you and you could feel the heart in the leadership. It wasn't perfect, but it was human and that's everything. But then in February of 2020, just right before the pandemic hit, our CFO retired and I can still feel the shift that happened at that time. The CEO started stepping back from her people facing role, especially once the pandemic hit and a new HR department came in and a new CFO and then q, the pandemic. It was like the soul of the company vanished almost overnight. What had been warm, became very cold, and what had been collaborative became very controlling. And what had been wellness centered became fear-based, and that brings us to the first leadership style. It's called autocratic leadership, and this type of leadership is the my way or the highway approach. Leaders make decisions without input. Policies are handed down like commandments. There's no space for feedback, no room for questioning, and definitely no compassion. This was OCuSOFT after the shift. One moment that stands out in particular, in 2021, they issued an ultimatum. Get the vaccine. Or lose your job. Now, whether or not you agree with the mandate, here's what mattered. There was zero discussion, no empathy, just fear, and people actually got terminated. I'd say wrongfully terminated because they did not get the vaccine. At that point, it wasn't about health and wellness, it was about control. People were terrified. Some cried at their desks, and I remember thinking, where did the heart go? Let's talk about another style. It's democratic leadership. This style invites input. It says, Hey, I wanna hear from you. It builds trust through collaboration. And that was OCuSOFT. Before 2020, our leaders asked us what we thought. They listened. They actually changed direction when something wasn't working. That kind of leadership makes employees feel empowered, engaged, and safe when the democratic style vanished. So did morale, I'm going to repeat that.'cause it's so important when that Democratic leadership style vanished. So did morale. So if you're leading a team today, ask yourself, am I telling people what to do or am I inviting them into the process? And then there's transformational leadership. This is one of my personal favorites. Transformational leadership doesn't just lead. They actually elevate. They believe in your growth. They see your potential even when you can't. That was our original CFO. He would say things like, I see the leadership in you, or Have you thought about stepping into that role? Or, let's develop that in you. Those words change my life. Transformational leadership creates loyalty because it nurtures people, not just their productivity. It's the kind of leadership I strive to embody now in my coaching and consulting work. Now let's switch gears. Lazen Fair is the next leadership style. It's the you figure it out. Style Leaders are hands off sometimes too. Hands off. This wasn't issue, but I've seen it in other companies that I've consulted and coached with. This can work for high level teams who love autonomy, but for most people it's confusing. Disorienting and lonely. The balance between support and freedom matters, and when leaders ghost their teams trust crumbles. So if you are in leadership, are you empowering people or abandoning them? And actually my manager at this company was very laissez-faire. She didn't care whenever it came to anything. In fact, she told me on several occasions, if it was up to me, you wouldn't be here. Yeah, because she didn't care about her wellness. She didn't care about her team's wellness. I had been in her office one time and there were other people that had to ask her questions. I just told her what I needed and was out of there because that's just the way that it works with her, because she was very laissez-faire. Well, there was another girl in the office at the same time, and she needed to ask her something and. This manager turns to her and goes, what do you want? Just like that. I'm not kidding you. It was like that, and the person just said, I wanted to tell you good morning. Actually, the person needed something, but she didn't get what she needed, nor does she give anything. She had to figure it out on her own. Just like laissez-faire leadership. That's what happens. You're not empowering your people and you're actually abandoning them. And what happened with this department is several people were just present. They just came to work. They just put in their time and went home. And when you have a laissez fair leader of your department, you're going to have. Lazy employees because what they really wanted, or what this leader wanted was just people to be on the clock, just be there. That's what they wanted from me. I couldn't do that. I loved my job. I did my job every day. I went in there. Whether this laissez-faire leader appreciated it or not. And then finally, we land on what I believe is the most soul aligned leadership style. It's servant leadership. This flips the script. The leader's job is to support the team and not command them. It asks, how can I help you succeed? What's blocking you right now? How can I serve you? In my early years at OCuSOFT, the CEO modeled this, not my manager, the CEO actually modeled this. She walked the halls. She knew people's names. She showed up for her team, and you could feel it. But over time, that presence disappeared and so did the trust. And this taught me something big. Leadership is about presence, not just position. So let me get real with you for a second. I've coached and consulted people who have left great jobs, not because of the work, but because of the leadership. People will walk away from everything they love. When they don't feel seen, when they don't feel respected, or when they don't feel safe. Toxic leadership causes anxiety, burnout, depression, and disengagement. And it's not just bad for people, it's bad for the business. I watched Innovation Slow. I watched great people leave. I watched great people get terminated wrongfully, and the culture crumbled and it didn't have to be that way. Another thing that happened there is the employees just showed up to work. Just clock in. Just clock out. That's all we want. Don't say anything. Just come to work and do your job. Yeah, that's the easy way to go about it. But my heart and my values to not align with that. So what can you do if you are a leader, whether you're a CEO, a manager, a coach, or even a parent, ask yourself, what energy am I bringing into the room? Am I leading with fear or curiosity? Do my people feel safe around me? And if you're employee, here's your reminder. You're not crazy. It's happening, I promise. And if the culture shifted and it feels off, that is real. And if your wellbeing is suffering because of leadership, you deserve better. So let's lead with heart. Here's what I believe. Culture isn't what's written on the wall. It's what's lived in the hall. Huh? That sounds pretty good, huh? Culture isn't what's written on the wall. It's what's lived in the hall. Leadership is about energy, it's about heart, it's about presence, and when we get it right, teams thrive. People heal, and work becomes something people actually love. Again, if you wanna be that kind of leader or work for one, I've got a resource for you. I've got a link to the blog post that goes with this episode today. It goes deeper into the details we talked about today, and in fact, I have a free community. It's free right now for other wellness professionals who are interested into getting into team wellness. I'd like to talk to you about that too. You could book a call with me and there'll be links to that in the show notes and description below. And together we can build teams that don't just survive, they actually soar. All right, that's my episode for today. I trust that you found it helpful. And if you know someone who can benefit from this, please share it with them. And until next time, I will see you next time. Peace out and namaste.

The Leadership Mistake I’ll Never Forget