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Types of management styles: Could change in style create more revenue?

Studies have revealed that poor management could be costing organizations a staggering $8.1 trillion globally. Management can have an impact on staff turnover (employees ‘firing’ their boss), engagement and productivity. And all of these factors could be costing your organization.

Here, we’ll outline a range of management styles, so you can support your managers and leaders to be the best they can be. After all, what works for one won’t always work for the other.

Attensi Team

Published · Updated

Key takeaways

  • A management style is the philosophy behind how a manager makes decisions, looks after their team and fits into the organization.
  • Styles are shaped by internal and external factors, from the company and the type of work to the manager's own personality.
  • There's no single best style: successful managers adapt to the people in their team and the task at hand, in line with the organization's values and goals.
  • Every style has advantages and disadvantages, so knowing the options helps managers choose the right approach for each situation.

What is a management style?

A management style is the philosophy behind everything a manager does. It influences how they make decisions, how they look after the people in their team and how they fit into your organization.

This style can vary due to a number of reasons, from the company they work for, to the kind of work they do, as well as the personality of the manager themselves.

A successful manager is one that will adapt their style, depending on the people in their team and the task at hand. And they’ll do so in a way that’s still in line with the organization’s values and goals.

What are the factors that affect management styles?

There are many factors that affect someone’s style of management, but most can be split into two categories – internal and external.

  • Internal factors

    • Culture
    • Policies
    • Priorities
    • Employee engagement
    • Employee skill levels

  • External factors

    • Employment laws
    • The economy
    • Competitors
    • Suppliers
    • Consumers

What are the different types of management styles?

Management styles can be placed into three categories: autocratic, democratic and laissez faire.

There are several types of management within each category, and each comes with its own advantages and disadvantages.

Autocratic management styles

Autocratic management styles are dictatorial approaches to management. They’ll usually follow a hierarchical structure, giving absolute power to those in higher positions.

In an autocratic environment, employees are given very strict working guidelines, and are closely supervised.

There is very little room for creative freedom. Employees aren’t always encouraged to give their thoughts on the tasks they are given, instead expected to complete them to the management’s liking.

The autocratic styles are:

  1. Authoritative
  2. Persuasive
  3. Paternalistic

1. Authoritative management style

The authoritative management style will typically mean a manager gives their team instructions and will expect them to be followed to the letter. Teams will generally be monitored quite closely and failure to meet expectations could result in consequences for the team member.

2. Persuasive management style

Rather than simply issuing orders in the authoritative style, a persuasive manager provides reasoning behind their instructions.

This style allows your employees to feel somewhat more involved in the decision-making process, and a more trusted part of the company.

3. Paternalistic management style

Paternalistic managers will prioritize their team members when making decisions. You’ll often hear paternalistic managers describe their teams as a ‘family’. However, as this is still an autocratic management style, team members will have little to no final say in decision-making.

Authoritative
AdvantagesKeeps the organization streamlined. Everyone understands their role and expectations. Decisions are quick and effective. Can work well with a large or low-skill workforce.
DisadvantagesEmployees can get frustrated by the lack of autonomy. Can cause friction between teams and leaders. Restricting creativity can hold back innovation and leave processes outdated.
Persuasive
AdvantagesImproves the relationship between manager and employee. Employees are more engaged with decisions. Less pressurized.
DisadvantagesEmployees understand decisions better, but still have little control or input on how things are done.
Paternalistic
AdvantagesPrioritizing team members often means investing in upskilling, leading to a more skilled and content workforce.
DisadvantagesEmployees may become heavily reliant on managers. Can lead to a lack of initiative and problem-solving. May feel patronizing and cause friction between managers and staff.

Democratic management styles

In a democratic management style the manager still holds all the decision making power. However, the level of communication within the hierarchy is greatly increased, with employees encouraged to give their opinions on what should be done.

This diversifies the decision making process, leaving greater room for innovation.

The democratic styles are:

  1. Consultative
  2. Participative
  3. Collaborative
  4. Transformational
  5. Coaching

1. Consultative management style

Consultative managers make sure to consult every member of their team before coming to a decision. While staff are encouraged to give their thoughts, it’s purely an advisory role – the decision is ultimately the manager’s.

This style is useful when the workforce is highly skilled in a particular area of work.

2. Participative management style

Decision-making power is shared across the workforce, with manager and team members working together.

Employees are given greater insight into company goals so they can form educated opinions. The manager will actively seek out and consult each employee on what they think is the right move.

3. Collaborative management style

Managers and team members openly discuss decisions, and the conclusion is left to majority rule. This style empowers employees by giving them responsibility and a say in how the organization runs.

4. Transformational management style

This style places heavy emphasis on the growth of employees. The manager will try to push staff out of their comfort zones, and take on a motivational role.

They will work alongside employees as a role model, inspiring staff through their own work ethic.

5. Coaching management style

Here, the manager takes on the role of coach.

The pace is less frantic, with the manager favoring long-term success over short-term wins. This means prioritizing employee development through learning and upskilling, with the manager as the guide throughout the process.

Consultative
AdvantagesBetter problem-solving through a wider range of opinions. Stronger bonds between managers and team members. Opportunities to share knowledge and expertise.
DisadvantagesConsultation can be time-consuming. Team members may lose faith in a manager who constantly relies on their help. Favoring one person’s opinion can cause frustration.
Participative
AdvantagesEmployees feel trusted and valued. Higher engagement and loyalty. Greater understanding of company goals.
DisadvantagesConsulting everyone can be very time-consuming. Wider access increases the risk of sensitive data leaking. Quieter employees can go unheard or feel uncomfortable.
Collaborative
AdvantagesTeams feel trusted and valued. More responsibility can boost productivity and creativity. Open discussion resolves conflicts before they become problems. High engagement can improve retention.
DisadvantagesVery time-consuming. Majority rule doesn’t always lead to the right decision – and overturning it risks angering most of your team.
Transformational
AdvantagesBuilds a skilled, prepared workforce primed for problem-solving and innovation. Can greatly increase productivity.
DisadvantagesConstantly pushing staff can lead to burnout, lowering productivity and quality of work.
Coaching
AdvantagesStaff feel someone is investing in their development and future. Strong manager–employee bonds boost productivity.
DisadvantagesFocusing on the long term can affect the company’s short-term prospects.

Laissez faire management styles

These management styles place a high level of trust on the employees, with the manager leaving the staff to control their own work.

This hands-off approach gives team members a lot of freedom, with the management only getting involved at the beginning and end of the process, or when their assistance is requested.

This approach is most favorable when the staff are experts within their field.

Laissez faire management styles are:

  1. Delegative
  2. Visionary

1. Delegative management style

Managers will generally only be involved at the beginning and end of the process.

At the beginning, they’ll outline all the tasks and assign them to particular team members. Staff are then free to complete the tasks how they see fit. At the end of the process, the manager will step in to check that the work has been completed to a satisfactory level, and advise on how to improve going forward.

2. Visionary management style

Managers take teams on a deep dive into the company’s vision, hoping to use it as a source of inspiration for their work.

The manager takes on the role of motivator, and team members are free to work as they please. The manager trusts individuals to complete their tasks and help move the needle towards the company vision.

The manager advises through constructive feedback, and is sure to heap praise on those who do well.

Delegative
AdvantagesLeaves plenty of room for innovation and creativity. Improves teamwork and collective problem-solving. Freedom can make employees happier, boosting engagement and retention.
DisadvantagesLack of leadership can mean a lack of direction and focus. Unmanaged conflicts can create a poor working environment. Staff may feel the manager isn’t pulling their weight, straining the relationship.
Visionary
AdvantagesKnowing the company vision gives work greater purpose. Creates a breeding ground for innovation and creativity.
DisadvantagesBeing inspirational is easier said than done, and doesn’t come naturally to every manager.

Making sure you get the right manager

Picking the right manager is vital. It’s therefore important to have the tools to discern a candidate’s management style in an interview.

The management recruitment process is notoriously tricky, with Gallup estimating that 82% of the time the process yields the wrong candidate.¹

The same study outlines how great an impact a manager has on their team’s engagement, productivity and retention.

Here are some interview question examples you may wish to use to help your search!

Example questions

This guide has hopefully given you the tools to find the manager who best meets the needs of your employees – and helps your company smash its goals.

For all things upskilling or reskilling your workforce, ready for their next management opportunity, speak to the Attensi team today.

Are you ready to level up your training?

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Sources

  1. Why Great Managers Are So Rare, gallup.com/workplace/231593/why-great-managers-rare.aspx