6 Management Styles: Advantages and Disadvantages

Each leader is unique.

As a result, they all have different management styles that help them lead and manage a team. The style they adopt will have a profound impact on the people they work with and the outcome of their objectives.

During my 25 years working in corporate environments, I have worked with many leaders. Each of them have employed many different management styles.

Some are caring and always around to provide you with the resources and support to get things done. Others live in their own world, pushing and driving their teams to the wall to get results. There are directive leaders that have a “my way or the highway” mentality. And there are also leaders who are too empathetic, compromising performance at times.

All these different management styles may deliver the same outcome, but their impact on a company’s people and culture is different.

Let’s explore the six common types of management styles that most leaders practice.

What is leadership?

Great leaders are defined as someone with a clear vision of how goals are to be achieved to benefit their people and company. They choose to listen to peers and direct reports alike to facilitate better decision-making. They’re always available when the team needs them, and they are a great inspiration to garner the team forward.

A 2021 Gallup report revealed that managers account for 70% of variance in team engagement. Poor leadership has major negative implications for the organization. It can result in poor productivity, increased employee stress, and negative attitudes in the workplace.

On the other hand, adopting the right leadership style will positively impact a company in many ways. It'll reduce turnover, empower employees to be more productive, and strengthen company morale.

When leaders lead by example, it creates trust and a positive working environment. This enables employees to perform at their highest capacity.

The right leadership style can vary from one organization to the next. No matter what style you choose, a good leader must inspire and support their team and drive their organization forward.

Let’s explore the different management styles that leaders can adopt and look at how each one can help or hinder your employees’ and company’s success.

Autocratic management style

An autocratic leadership style resembles the traditional military command-and-control approach. It’s top-down management.

The autocratic leader is authoritarian, believes they’re smart, and always knows the best way to get things done. No matter the question, the autocratic leader has the answer. The tagline for this style is, “just do as I say."

Autocratic leaders rely on strict rules, policies, and procedures to govern the workplace. They make all the decisions with little input from team members.

An extreme example would be Kim Jong-un, the supreme leader of the Democratic People’s Republic of Korea, also known as North Korea. You have to follow his instructions to the letter and will be severely punished if you fail to meet his expectations.

Advantages

Crucial decisions can be made on the spot when dealing with a crisis

Efficient when working with an inexperienced or new team

Improves productivity as people need to follow a proven set of systems and procedures

Disadvantages

Inhibits team creativity as input isn’t needed or wanted

Team members develop a system of dependency instead of deciding things on their own

Team member morale is low as their work is routine and uninteresting

Visionary management style

Visionary leaders are driven and inspired by what a company can become. They bring cohesiveness to inspire all team members to be on the same page. They’re often charismatic and are well-suited to lead a company into new industries, markets, or categories.

They succeed at helping the company move in a new direction or creating an innovative environment for people to flourish in. Their tagline is, “come with me."

A good example of the visionary management style would be Elon Musk, CEO of SpaceX and Tesla Motors. He’s revolutionized entire industries with his focus on challenging the status quo.

Advantages

Encourages team members to think creatively, producing ideas that others haven’t seen before

Creates a forward-looking and future-focused mindset

Builds trust and commitment to foster innovative thinking

Inspires people who want to move forward

Disadvantages

Vision is linked to the leader rather than the company itself

Heavy focus on the long-term vision may sometimes impact short-term goals

Fixation on the leader’s vision may cause the team to lose sight of creative and innovative ideas from others

Consultative management style

Consultative leaders assume their team has the capability and knowledge needed to excel at their jobs.

While the leader has the authority to make the final decision, they prefer to listen to every team member’s viewpoint before acting. They ask employees for thoughts, views, and opinions, allowing them to feel involved.

However, the leader will ultimately make the final decision. While communication flows in both directions, management tightly controls the way things are done.

A real-life example of the consultative management style is Ray Dalio, founder of Bridgewater Associates. Ray Dalio values independent thinking. He encourages every employee, no matter how junior, to put forward new ideas and suggestions.

Advantages

Increases employee engagement as team members are often consulted and feel respected

Improves quality of decisions as it considers input from many team members

Different creative ideas may be generated during the decision-making process as people feel safe to voice their opinions

Disadvantages

Time-consuming as it involves many rounds of meetings. This style is less effective for urgent tasks

Manages conflicting opinions, which results in some people being unhappy with final decisions

Slow in decision-making as it is sometimes difficult to arrive at a consensus

Participative management style

Participative leaders normally involve their entire team. They encourage their employees to take part in decision-making and involve them in formulating plans and policies.

This is sometimes called a democratic management style, as it decentralizes authority.

When conducting meetings, the leader takes a hands-off approach. They act more like facilitators, letting employees open up and do the talking. They work alongside team members, focusing on building relationships and rapport.

Richard Branson, CEO of the Virgin Group, perfectly embodies this democratic leadership style. He has a collaborative management approach that empowers his employees to reach the goals of the organization.

Advantages

Improves motivation and morale

Performance improves due to greater ownership for all team members

Better employee engagement with reduced grievances and employee turnover

Disadvantages

Can be indecisive, taking too long to reach a decision

Social pressure to conform with groupthink

Can result in inefficiency and low productivity

Pacesetting management style

The pacesetting leader sets high or hard-to-reach standards to drive their team to achieve new goals. This leader sets the bar high for themselves as well as their peers.

They’ll provide instructions and set the pace, expecting employees to follow in their footsteps. They don't trust others to do their job, and they’ll take over when things don't move as quickly.

A good example of a pacesetter is Lee Kuan Yew, the first Prime Minister of Singapore. He had very high expectations and strived for constant improvement. By heavily investing in education, he created a skilled workforce, capable of living up to his standards. His leadership turned Singapore from an underdeveloped country into one of the wealthiest countries in the world.

Advantages

Things get done more efficiently

Stretched business goals can be achieved in the short term

Issues will be resolved quickly without wasting time

Disadvantages

Can hurt a business in the long run as employees experience burnout and cannot keep pace

Leaves less room for creativity and innovation as employees work under tight deadlines

Threatening an employee with removal for underperforming can result in a lack of trust and poor engagement

Coaching leadership style

Management gurus Ken Blanchard and Paul Hersey developed the situational leadership model. They believe leaders must be adaptable and move from one leadership style to another depending on the situation.

This type of leadership revolves around the four basic management styles. They are directing, coaching, delegating, and supporting. A leader can use any of these styles based on the circumstance and situation they are facing.

Coaching leadership focuses on helping employees become better individuals. The coaching management style helps employees develop both personally and professionally in the long term.

A coaching leader supports and challenges team members. Their intent is to help them achieve their developmental goals. They encourage people to try something new on their own.

Satya Nadella, the CEO of Microsoft, is a great example of a coaching leader. He solicited thoughts from employees he spoke to and listened empathetically to what they had to say. He asked non-directive questions and played a supporting role in helping his people grow.

Advantages

Creates a positive work environment where people are highly motivated and eager to learn

Helps the team increase awareness and leverage their strengths while overcoming shortcomings

Employees know exactly what’s expected of them, and they understand the strategy of the company

Disadvantages

Requires time and patience for employee development

Team members receiving coaching must be motivated to develop and willing to receive feedback

Coaching alone won’t solve universal, systemic problems or create quick fixes

How to improve your leadership and management skills

There’s always room to grow as a leader. You just have to put in the work. Here are some helpful tips to help you improve your leadership skills and become a great leader for your team and organization.

1. Do the Inner Work™

To become a better leader, you must start from the inside. Simply put, you must learn to manage yourself before you can start managing others.

Inner Work™ is the practice of developing self-awareness by looking at our authentic selves and experiences. Some ways to pursue Inner Work™ include meditation, breathwork, or learning how to manage difficult feelings.

Inner Work™ that is done consistently improves your relationships with your team, boosts your confidence, and improves your decision-making. These are just a few ways looking inward helps improve your leadership skills.

2. Fine-tune your soft skills

In the age of artificial intelligence, your unique value as a leader lies in your human skills.

While technical skills are important to have, soft skills are what develop you into a great leader. The way you adapt to change or how you connect with others are skills that will always be valued in the workplace no matter how much technology changes.

Nurturing soft skills like creativity, collaboration, or resilience is crucial if you want to grow as a leader.

3. Focus on inclusivity

Leaders are role models for their teams. As a leader, you want every employee to feel seen, heard, valued, and respected. To improve your leadership skills, you must develop inclusive behaviors.

Inclusive leadership and management can mean building connections with your teams, recognizing employees’ growth and success, and showing empathy. When you become a more inclusive leader, your relationship with your peers and employees changes for the better. When employees feel included, they bring their best selves to work.

4. Find support

Being a leader doesn’t mean you can’t rely on others to give you a helping hand when you need it.

For example, a coach or mentor can help you improve your leadership skills by providing guidance. A mentor with years of leadership experience can share their expertise and teach you new and valuable skills. A coach, on the other hand, is a highly-trained professional that can help you develop a specific leadership skill you want to improve.

If you’re new to leadership, another way to develop your skills is by participating in an executive development program. This type of training teaches you effective management skills you’ll need to succeed in your future role.

How to decide which management style to use

Some of the questions you might ask yourself when deciding which management styles to use can be found in the table below.

Questions to Ask Potential Management Styles What is the best way to help this person develop? Coaching What is the change needed to bring the organization to a new level? Visionary How much time do I have before making the crucial decision? Autocratic What are the best possible options to deal with this issue? Participative What technical capabilities are needed to develop this new product? Consultative What do we need to do to achieve a breakthrough result? Pacesetter

Choosing a management style

There are no right or wrong management styles. An experienced leader knows how to choose the management style that's best suited for a specific employee or situation.

Being aware of different leadership styles while knowing your preferred one can help you identify what works best for you. Building your unique style with the flexibility to switch enhances your overall leadership effectiveness.

Successful managers have many styles and tools to draw from to meet the needs of the moment. It’s worthwhile to invest energy in deepening and developing your leadership skills, regardless of what style you prefer. Especially if your leaders are managing managers, how are you investing in their development?

Are you interested in developing your management skills? BetterUp offers you the tools and support you need to become the best leader possible for your team and organization. Schedule a personalized demo today.

Management Styles: Definition, Types, and Examples

Every team is unique and requires a different type of management style depending on the situation, requirements, and culture. Therefore, a manager should understand each management style in depth to make them better and more efficient.

Social psychologist Douglas McGregor developed the first management style theory in the sixties.

What is a Management Style?

Definition: A management style is a way of working where a manager organizes, plans, delegates, make decisions, and manages the team. Each manager has a different style of management depending on the organization, team behavior, industry, culture, management level, the operating country, etc.

Effective managers adjust their management style to fit organizational goals, team requirements, and targets.

The 6 Types of Management Styles

A management style can be of the following type:

Authoritarian Democratic Visionary Laissez-faire Transactional Persuasive

#1. Authoritarian

In an authoritarian or autocratic management style, managers take full control and direct employees to achieve objectives. An authoritarian manager works towards an organizational goal and ensures that each employee works towards the same, without paying much attention to employees’ career development.

Authoritative managers assert strong authority over decisions and employees and have complete control over decision-making, defining roles, reporting structure, and responsibilities. They care less about employee growth and expect total obedience.

An effective authoritarian leader is focused on the organization’s goals. These managers work best in traditional cultures with less experienced employees.

#2. Democratic

A democratic or collaborative manager is the opposite of an authoritarian. In this management style, managers care about employees’ opinions. These managers encourage employee participation and welcome a difference in opinion.

The goal of democratic managers is to grow the company and employees. These managers always seek suggestions and potential solutions to solve organizational issues.

The final decision making authority still lies with the manager in this management style. However, democratic managers consider the opinions of their team members.

A democratic management style works best in dynamic organizations where team members are experienced and skilled and appreciate group participation.

#3. Visionary

A visionary or charismatic manager can convince their team to focus on and believe in a purpose. A visionary manager conveys the organization’s vision and inspires the team to work hard to achieve it. Such managers believe in letting their teams take on routine work and interfere in prominent decisions.

The visionary management style involves motivating, encouraging, inspiring, aligning the team with the bigger goal and providing them with the support they need throughout the process.

Visionary managers allow their team members to work on their terms, provided they are productive and working towards the end goal. However, managers check on the team members regularly to see if they are facing any issues.

This type of management style is best used with team members who like to be self-driven and are motivated through autonomy or authority. When team members reach a top management level, they like to complete tasks independently with minimal interference, and this is where a visionary manager is the right fit.

#4. Laissez-faire

The laissez-faire management style places importance on employee freedom. As the term means ‘let do’ in English, this is precisely what laissez-faire managers practice. They let their team members do what they think is best. Managers don’t interfere in this management style, but the team must meet certain expectations. Here, decision making power rests with the employees. However, they can seek the manager’s help whenever needed.

This management style is best used with self-driven and self-motivated teams that need minimal guidance. Such team members are experts in their fields and do not require managers’ guidance.

#5. Transactional

The transactional management style uses rewards, bonuses, and tangible and intangible incentives to motivate team members to perform better. This management style also includes punishment like warnings, pay cuts, and notices when employees do not perform well. Transactional managers focus on bringing out the optimal performance of the team to reach organizational goals.

This management style can be used for projects or teams with strict deadlines and is only motivated by rewards.

#6. Persuasive

A persuasive management style refers to managers inhabiting strong control, centralized reporting, and decisions based on both the manager and team’s opinions. It is like a diluted version of the autocratic style since persuasive managers encourage questions, respond to their team members, and guide them towards better performance.

In this management style, the manager discusses issues with team members to reach a decision. Employees are motivated to perform better through persuasive methods like creating urgency, connecting emotionally, and providing evidence to support the project’s progress instead of using the reward and punishment system.

Managers use this style of management when they are experienced and skilled, and there is clear communication between the manager and the team. The manager can persuade the employees to enhance their productivity and build their team’s confidence.

Examples of Management Styles

John is a manager of a team of ten members. We will discuss all the six management styles within this example, with John using a hybrid approach to use the different management styles in different situations.

The team is assigned a project to be completed in the next four months. Two members in this team are top management level employees, six are middle-level employees, and two are low-level employees.

In the beginning, John follows the autocratic style and assigns duties to each team member. He conducts a session for the six middle level employees and two low-level employees. John informs them of the organizational goals and expectations from the team.

Moving forward, he uses the democratic approach to delegate the work authority and responsibility to the two top management level employees and assigns them four employees each. John has shifted his authority to the two top level employees who will manage four employees and have the power to make decisions.

Next, the two top level employees conduct separate meetings with their subordinates and communicate their vision to complete the project. They motivate their team members by inspiring them to work better and giving them some authority at the individual level for minor tasks.

John follows a laissez-faire approach with the two top level management employees as all three belong to the same managerial position. John trusts the expertise of both employees and allows them to act as they deem fit, providing them complete freedom.

Coming back to the two employees at the top management level, they use the transactional management approach with their team members and offer them rewards based on their performance. Increments and bonuses are promised to employees who perform as expected, and warnings are sent to the under-performers.

Lastly, John uses a persuasive style of management on both top level employees, wherein he ensures that the top authority lies with him and that the work is completed as per expectations. John considers the opinion of the two top level employees and includes them in the decision making process.

The two top level management employees follow the same methodology with their team members. They use the persuasive style of management by including their team members in the decision making process and encouraging questions.

How Can a Manager Choose the Ideal Management Style?

#1. Analyze the Style That Suits Best

Some managers are born with an inbuilt management style that suits their traits. For example, some leaders are better at delegating work and trusting their employees, making them natural democratic leaders. On the other hand, some leaders have difficulty transferring responsibility to their team members and prefer working according to their own rules, making them natural authoritarian leaders.

Identifying the manager’s natural management style is important to understand the style best suited for them in managing the team.

#2. Identify Team Requirements

Some teams are naturally self-driven and need the freedom to work effectively. A mix of democratic and laissez-faire management styles can be used in this case. After identifying the management style, managers should analyze their team’s behavior and the type of motivation the team requires to be productive.

If the teams require constant motivation and push, a hybrid of a visionary and transactional style of management can be used.

#3. Find a Balance Between Manager and Team Personality

After analyzing team requirements and the manager’s natural style of management, managers find the balance between the requirements and their management style. Managers should use the management style according to the team’s requirements as it will affect their performance.

It is essential to use the style that suits the manager best so they can guide the team naturally yet effectively.

#4. Define a Corporate Culture

Corporate culture is the combined belief and behavior between employees and management. The corporate structure impacts the management style that best fits a team, as it helps managers analyze the most suitable management style at that time.

For example, during major organizational structural changes, the visionary style helps managers keep the team focused yet stress-free. However, if the corporate structure suggests that the team is highly demotivated, transactional and persuasive styles can help to positively impact their productivity.

#5. Implement the Management Style

After identifying the right management style for the manager and their team, the last step is implementing it. If a single approach is best suited, apply the approach to enhance the team’s efficiency. However, if more than one management style is necessary, apply the approaches in a hybrid manner, which means using the best type of management style based on the situation.

Conclusion

Several management styles help managers become better leaders and enhance their team’s productivity. Different teams and different situations require a different approach for a successfully motivated team. Managers should identify the management style that suits them and their teams the best if they want to become successful leaders, encouraging organizational growth and employee development.

The Four Basic Leadership Styles

What are the 4 Basic Leadership Styles

Leadership is a process by which an individual influences a group of individuals to achieve a common goal. The concept of leadership has been studied since ancient times. Leadership theories have evolved over the years, but the basic premise remains the same; good leaders know how to inspire and motivate others to achieve a common goal.

Different circumstances may call for varying types of leadership. For example, a leader within a large corporation may be expected to have the ability to make quick decisions and delegate tasks efficiently. In contrast, the leader of a small team may be expected to have a more hands-on approach and build strong relationships with team members. The ability to lead effectively is a valuable skill that can benefit many different types of organizations.

Four basic leadership styles that have been identified are:

autocratic

democratic

laissez-faire

paternalistic

Each of these styles has its distinct advantages and disadvantages. The following sections will explore these four types of leadership styles with examples.

Autocratic Leadership Style

Autocratic leadership is one of the four main management styles of leadership. This leadership style is one in which the leader makes all the decisions and gives all the orders. It is typically used in organizations where there is a need for quick decisions and clear, concise direction. Autocratic leaders usually have a high degree of control over their subordinates and are not afraid to use their authority to get things done.

One of the main benefits of autocratic leadership is that it can be very effective in times of crisis. When there is a need for quick decision-making, an autocratic leader can often make decisions quickly and efficiently. This type of leadership can also be beneficial in situations when clear and concise direction is needed. Another benefit of autocratic leadership is that it can help to motivate employees by instilling a sense of fear or respect.

However, there are also some significant drawbacks to autocratic leadership. One of the main disadvantages is that this type of leadership can often lead to a high degree of conflict. When subordinates feel like they have no input or control over the decisions being made, it can lead to frustration and resentment. Additionally, autocratic leadership can often stifle creativity and innovation as employees may feel unable to share their ideas or suggestions. A final drawback worth noting is that this leadership style relies on the leader's judgment and decision-making abilities. If the leader is incapable of making sound decisions, it can have negative or even disastrous consequences for an organization.

An example of an autocratic leader would be a military general who gives orders and expects them to be followed without question. Another example would be a CEO who makes all the significant decisions for a company without consulting other executive team members.

Democratic Leadership Style

Democratic leadership is characterized by consulting with subordinates and considering their suggestions and input when making decisions. This type of management style is often utilized in organizations where there is a need for collective decision-making and input from all team members. Democratic leaders typically have a high degree of respect for their subordinates and believe everyone should have a say in the decisions being made.

Some of the benefits of democratic leadership include:

Enhanced creativity and innovation: When employees feel like their ideas are valued and have a say in the decision-making process, they are more likely to be creative and innovative.

When employees feel like their ideas are valued and have a say in the decision-making process, they are more likely to be creative and innovative. Improved trust and communication: Democratic leaders typically have strong communication skills. They can listen to and understand the perspectives of their subordinates, leading to improved communication within an organization and increased trust between leaders and employees.

Democratic leaders typically have strong communication skills. They can listen to and understand the perspectives of their subordinates, leading to improved communication within an organization and increased trust between leaders and employees. Greater employee motivation: When employees feel like they are a part of the decision-making process, they are more likely to be motivated and invested in the organization's success.

However, there are also some drawbacks to democratic leadership. Some of these include:

Slow and inefficient decision process: This type of leadership requires input from many or all team members, which can be problematic when quick and decisive decision-making is needed.

This type of leadership requires input from many or all team members, which can be problematic when quick and decisive decision-making is needed. Difficult to implement in large organizations: It may be impractical to consult with large numbers of employees on various decisions.

It may be impractical to consult with large numbers of employees on various decisions. Relies heavily on leaders' consultation abilities: For democratic leadership to be effective, leaders must have strong consultation skills and be able to take into account the perspectives of others. This leadership style will likely be less effective if leaders are not exceptionally skilled at the consultation process.

An example of a democratic leader would be a manager who solicits input from their team before making decisions. Another example could be a school board that holds meetings to get feedback from the community before making decisions about the budget.

Laissez-Faire Leadership Style

Laissez-faire leadership is a style of leadership in which the leader takes a hands-off approach and allows subordinates to make their own decisions. This leadership style is typically used when employees are highly skilled and knowledgeable about their jobs. The purpose of laissez-faire leadership is to allow employees to utilize their skills and knowledge to the fullest extent and make decisions they are best equipped to make.

There are several benefits of laissez-faire leadership. One important benefit is that it can lead to increased creativity and innovation as employees are given the freedom to come up with their own ideas. This type of leadership can also lead to increased employee motivation as employees feel more empowered and responsible for their work. In addition, laissez-faire leadership can promote better decision-making as employees are more likely to make decisions that align with the organization's goals and objectives due to their intimate knowledge of the organization and its operations.

However, there are also some drawbacks to laissez-faire leadership. One is that this type of leadership can lead to a lack of structure and discipline within an organization, which can cause chaos and confusion as employees may not be clear on what is expected of them. Additionally, this type of leadership can lead to decreased productivity as employees may take advantage of the freedom they are given and slack off. Finally, laissez-faire leadership can lead to increased conflict as certain employees may not be willing to compromise on their ideas.

An example of a laissez-faire leader is a research scientist who allows their team to develop their own ideas and plans for experiments. Another example is a software development team where the leader allows team members to work independently on their projects.

Paternalistic Leadership Style

A paternalistic leadership management style is characterized by an authority figure that treats partners and employees as though they were all part of an extended family in exchange for their loyalty and obedience. This type of leadership can be considered similar to how a protective and controlling parental figure would relate to their children. While some level of independence is expected and provided to subordinates, this type of leader will still make the final decisions and have the ultimate say in what happens. Leaders in this style may develop long-term relationships with their employees and focus on their well-being. The purpose of paternalistic leadership is to create a work environment with decisive and clear authority based on trust, respect, and loyalty.

There are a few key advantages of a paternalistic leadership style. Some of these include: