Leadership that is democratic in style offers four primary benefits. First, it contributes to a positive work environment. By allowing employees to take full responsibility for delegated tasks, the employee is able to take “ownership" and, in so doing, becomes invigorated and motivated by the project or task at hand. Motivated, fulfilled employees are happier, eager to work, and have a better perspective about their work environment and managerial team.
Second, the process of consultation and feedback tends to result in better decision making. The reason for this is all persons involved are able to participate and provide feedback in a decision. In this way, a decision proposed by management can be tweaked or changed to provide a benefit to all departments as opposed to one or two.
For example, if management proposes changing shipping companies, customer service can weigh in on the decision as can the shipping department and the distribution department. Because employees feel empowered by their involvement in the decision making process, they are more likely to support the final decision.
Third, this leadership styles allows for a free flow of ideas and room for efficient improvements. When various departments and employee classes interact together, barriers to efficiency can be discussed, monitored and amended.
Fourth, it reduces employee turnover. Employees tend to feel more empowered, more valued, and more respected when their ideas and opinions can be voiced, and they are encouraged to do so. Employees feel vital and important to the overall success of the company, and managers find it makes their roles easier and less time consuming because there are fewer problems with dissatisfied employees.