Behavioral and organizational psychology has a lot to teach us about being a great leader. Recent research reveals that modern leadership is less about ruling with an iron fist and more about cultivating an atmosphere where team members feel supported and appreciated.

This isn’t just “soft science.” There are well-documented psychological principles that, when applied correctly, can facilitate more employee satisfaction, innovation and motivation, leading to increased efficiency and business growth.

So, what are these principles, and how can modern leaders put them into practice?

Related: How to Instill and Foster a Growth Mindset in Your Employees

Create a culture of safety and open dialogue

Your team is more likely to develop a growth mindset if they feel safe to speak up, take risks and share their opinions without criticism.

Amy Edmondson introduced the concept of psychological safety in her book The Fearless Organization, asserting that people are more innovative and engaged when they work in a supportive environment. When employees trust that their contributions are valued rather than dismissed, they are more likely to collaborate, experiment and embrace challenges — key drivers of a growth-oriented workplace.

Many leaders claim they want an innovative culture, yet they unintentionally shut down new ideas with resistance or skepticism. Instead, modern leadership allows for open dialogue and even rewards employees for taking risks, recognizing that mistakes are all part of the learning process.

Establish a “no-blame” culture — one that encourages fresh ideas and continuous learning. Encourage your team to share openly, provide constructive feedback and take risks. This type of environment fuels business growth — whether that means launching new products, expanding into new markets or simply finding more efficient ways to work.

Break out of the fixed skills mindset

Carol Dweck’s work on growth vs. fixed mindset pertains to an individual’s belief that skills can either be developed (growth) or are innate and unchangeable (fixed). In other words, leaders with a fixed mindset might believe that some team members “either have it or they don’t,” which limits opportunities for development and growth.

The most obvious example of this is when an employee is having performance issues and is promptly let go because they are no longer a good fit for the organization. While sometimes this is justified, in many cases, organizations fail to provide training and skill-building opportunities to help the employee improve.

This “performance-based” orientation is inherently flawed in this way. The more modern (and I would argue, better) approach is to adopt a learning-based orientation, where effort, progress and learning are more overtly rewarded.

By prioritizing learning over perfection, employees become more resilient and engaged, while also building trust in leadership. More importantly, you set the tone for a growth-oriented workplace — one where innovation thrives and continuous improvement is encouraged.

Related: What Makes a Good Leader? Here’s What I’ve Learned After 20-Plus Years as a CEO.

Practice situational leadership

Situational leadership is a framework that encourages leaders to tailor their approach based on the context and needs of their team. Developed by behavioral scientist Paul Hersey, this concept supports the idea that one’s leadership “style” should be flexible and adaptable, rather than rigid and established.

This means being able to switch between directive and supportive behaviors, depending on what the situation requires. For example, you might take a more hands-on training approach with a new hire who needs direct guidance but adopt a more hands-off style for a seasoned, more autonomous employee.

To practice situational leadership, assess your team’s core competencies, levels of confidence and readiness to tackle specific tasks. Adjust your leadership approach based on the learning style of each employee, whether that means offering instructive guidance, motivational support or more direct delegation.

Some might fear this will make them a wishy-washy leader, but situational leadership does not mean leading without conviction or strength. In fact, adaptability itself is a strength, and a leader who can adjust their approach based on the needs of their team demonstrates awareness, as well as emotional intelligence.

This attunement will be well-appreciated by your team, making them feel more encouraged and motivated by receiving the tailored support they need to do their jobs well.

Related: How I Failed Miserably As a Leader and Ultimately Improved My Company

What science has to teach us about modern leadership

Modern leadership adopts well-tested psychological principles to find new ways of relating to one’s team and nurturing a growth mindset. These principles emphasize adaptability, emotional intelligence and trust. Drawing on concepts like situational leadership and psychological safety, effective leaders can tailor their approach to meet the unique needs of their team. This fosters an environment where innovation and learning thrive and are rewarded.

The science behind these approaches reveals that leadership is not about rigid control but about flexibility and empathy. This inspires resilience, engagement and innovation, which benefits the team and the organization as a whole.