New leaders face a challenging task when they take charge of their teams. They have to determine how best to guide the work process, and they must understand how their behaviors will affect the members of their team. This research examines how a newly assigned team leader’s status moderates subordinates’ reactions to different leadership styles to affect assessments of the leader’s self-confidence and effectiveness, and how this impacts team performance. Across 2 experimental studies, results demonstrate that low-status leaders are rated as more effective when they use a directive style, whereas high-status leaders are viewed as more effective when they use a participative style, and this relationship is mediated by perceptions of self-confidence. In addition, teams whose leaders are viewed more favorably perform better on a complex group task. These findings imply that low-status individuals are able to enhance their level of personal power by drawing on whatever positional power they hold, whereas high-status individuals are better off relying solely on their personal power to influence others. This research also provides a clear demonstration that assessments of new leaders’ behaviors are subject to an appraisal that is clouded by observers’ status perceptions and attributions. (PsycINFO Database Record (c) 2011 APA, all rights reserved)