Before I discuss SOAP encoding style's impact on performance, you should understand the differences between the three styles. SOAP RPC is the encoding style that offers you the most simplicity. You make a call to a remote object, passing along any necessary parameters. The SOAP stack serializes the parameters into XML, moves the data to the destination using transports such as HTTP and SMTP, receives the response, deserializes the response back into objects, and returns the results to the calling method. Whew! SOAP RPC handles all the encoding and decoding, even for very complex data types, and binds to the remote object automatically.
Now, imagine that you have some data already in XML format. SOAP RPC also allows literal encoding of the XML data as a single field that is serialized and sent to the Web service host. This is what's referred to as RPC-literal encoding. Since there is only one parameter -- the XML tree -- the SOAP stack only needs to serialize one value. The SOAP stack still deals with the transport issues to get the request to the remote object. The stack binds the request to the remote object and handles the response.
Lastly, in a SOAP document-style call, the SOAP stack sends an entire XML document to a server without even requiring a return value. The message can contain any sort of XML data that is appropriate to the remote service. In SOAP document-style encoding, the developer handles everything, including determining the transport (e.g., HTTP, MQ, SMTP), marshaling and unmarshaling the body of the SOAP envelope, and parsing the XML in the request and response to find the needed data.