Organization leadership has become one of the most important factors in the 21st century with increased competition in the market. Organization management leadership has been changing with time to suit the operation environment. Democratic leadership becomes particularly important from the 1980s owing to increased failure of autocratic leadership. However democratic leadership has not achieved the initial desired results in turning organization management to high performance.
Democratic leadership gives employees a high degree of freedom in the process of decision making in the organization. However lack of experience and knowledge of the democratic leadership process is one of the factors hindering the effectiveness of democratic leadership. This paper explores the three basic leadership styles and goes deeper to explore democratic leadership, its application, limitation and its advantages. It concludes that democratic leadership should be used in the most appropriate situation in the organization.