The democratic form of leadership is also known as the participative form of leadership. In this particular form of leadership, the leader gathers his workforce and includes them in the process of decision making. They all share their ideas and feel as if they are a part of the important decision making process. It is not a requirement to apply all the suggestions and opinions given in the process but it is important not to overlook those that are worthy to be applied. A solution is derived through consensus. The effects of the democratic form of leadership boosts the morale of everyone within an organization thus increasing productivity levels. Within an organization when there is a lack of motivation, this form of leadership should be used to make everyone feel as if they are part of the team. In a study it was seen that Swedish managers prove to practice the democratic style of leadership more than the Americans (R. Zemke, p.44-48). This leadership is considered to be most effective and many people opt for the democratic leadership style. Like Mary D. Poole states "Leadership should be more participative than directive, more enabling than performing" (Mary D. Poole).

             Many famous leaders have used this style of leadership and have benefited great success by it. One of the names known to all is that of Nelson Mandela who exhibited this style of leadership. His inclination to this form was so great that in one of his letters he expressed his fear that tribal rule would destroy the democratic leadership (Nelson Mandela). Another explicit example of democratic leadership was practiced by yet another famous leader known to us by the name of Winston Churchill. "Churchill passed the true test of democratic leadership by reaching the masses without resorting to demagoguery or compromising his principles" (Jonathan Sikorsky). Leaders like Benazir Bhutto from Pakistan, has shown the application of democratic leadership style and her party is considered to be the largest political party in the country.