Different management styles in the workplace

Being a good leader goes far beyond delegating tasks and overseeing workload. You’ve got to build trusting relationships with your team, be an ace communicator, and know how to motivate your team to get the desired results.

Aside from having technical knowledge, you need to be resilient, decisive and empathetic as well. If you’re a leader, or want to become one, it’s important to know there are different types of management styles you can adopt. Some are most effective in high-pressure situations, while others encourage good results in more laid-back settings. Depending on your field of work, your team and your personality, you’ll find some style work better than others. 

Whether you’re a project manager, a team leader or someone aspiring to be a manager one day, understanding the different styles of management is a great first step to being a good leader. Read on to learn about the 10 most common management style definitions and the pros and cons of each.

10 common management style examples

What are the management styles you’re most likely to see in the workplace? Here are the top 10, with leadership style examples, to give you an overview on different management approaches and where they’re most effective.  

1. Coaching 

Leaders with a coaching management style focus on developing the skills of the individual members of their team. They support and encourage team members, to improve the overall performance of the team.

Someone who adopts a coaching style of leadership will:

• Act like a coach, focusing on each individual team member’s needs
• Be an active listener, so they can connect with team members
• Have high emotional intelligence
• Balance praise and constructive criticism

Pros: a coaching management style promotes a positive work culture and empowers team members to realise their own potential. Teams are usually high performing, with team members who coach each other as well. 

Cons: for coaching management techniques to be successful, individual team members must be open to working on their own development. It also takes time to coach individual people, and many teams don’t have the resources. 

Real-life example of a coaching management style

Microsoft’s CEO, Satya Nadella, is known to use a coaching approach to management, making himself available to guide employees and provide support they need.

2. Collaborative style 

A collaborative management style brings people or teams from different departments together, moving them out of their ‘silos’ and removing communication barriers so they can work towards a shared goal. This type of management forms a bridge between teams by getting people to collaborate directly with each other, across levels and departments, promoting a more open and cohesive work culture.

A collaborative manager will:

• Encourage collaborative working, whether in person or using collaborative software
• Promote open communication across teams and departments
• Give each team member a voice
• Let the team make decisions together, rather than dictate
• Mediate any conflicts within their cross-functional team

Pros: one of the many advantages of the collaborative style of management is high team morale, as team members have direct input into the final result. Collaborative management cuts down on bureaucracy and helps each team member feel more empowered and engaged in their work and the larger mission of the organisation. 

Cons: when projects are the responsibility of a group, it can result in a lack of accountability if things go wrong. It also allows team members to avoid responsibilities, forcing others in the team to do more work. 

Example of collaborative leadership

Many tech companies have been seen to favour collaborative management styles. Former Meta COO Sheryl Sandberg was said to have had a collaborative leadership style, advocating for teamwork and open communication across the company. 

3. Consultative style 

The consultative style of management gets its name from being dependent on input from team members and having open lines of communication. Managers ask for opinions and insights from employees before making decisions, although they still have the final say.

A consultative manager will:

• Ask for team members’ opinions
• Encourage everyone on the team to have their say
• Make the final decision

Pros: the benefits of a consultative style include stronger relationships between a manager and their team, and employees feeling more involved and engaged in the decision-making process at work. 

Cons: some employees might be upset that their opinion wasn’t reflected in the final decision. Weighing up all team members’ opinions is not a time-efficient form of management; it slows down the decision-making process, which can impact results or KPIs.

Examples of consultative style in the workplace

Consultative leaders typically work well in environments where the manager is not a subject expert. Instead, they consult with their team to learn the whole picture. Managing technical or scientific teams often relies on a consultative approach. Ray Dalio, founder of the asset management firm Bridgewater Associates, apparently relies on his team for input on management decisions. 

4. Democratic style  

Like the consultative management style, the democratic leadership style also asks employees for their input and opinions in the decision-making process – the difference is that a democratic-style manager won’t make the final decision, they go with what the majority decides. Also known as shared or participative leadership, this style uses the opinions and feedback to make decisions, set goals and work as a team. This is considered one of the most effective leadership styles.

Democratic leaders will:

• Encourage open discussion in the team
• Build trusting relationships through transparent communication
• Be flexible, allowing their team to do things their preferred way

Pros: employees who have democratic-style leaders tend to have more autonomy and a high level of job satisfaction. This management style builds a positive work culture, where teams are more creative, innovative, and productive. 

Cons: democratic leadership can slow down decision-making processes. Some employees may not enjoy being part of the decision-making process and some might not have the expertise or experience to make informed decisions. 

Examples of democratic workplaces

One example of democratic workplaces is Mindvalley, an online education platform, which has placed on the WorldBlu List of Most Democratic Workplaces 11 times. CEO and founder, Vishen Lakhiani, has spoken about his democratic management style multiple times.

5. Transformational style 

One of the most common management styles at big tech companies, the transformational style is characterised by an energetic passion for work and a focus on growth and employee loyalty. A transformational leader has a clear vision that they share with their employees to inspire new ways of thinking and empower their team to work their hardest to grow the business.

This type of leader:

• Motivates their employees to be accountable for their work
• Trusts their employees to excel
• Inspires employees with high levels of charisma
• Earns employees’ trust by modelling ethical behaviour
• Can adapt to different types of leadership styles depending on the individual employee’s needs

Pros: a transformational style of management drives performance by empowering and inspiring workers to excel in their roles. Employees have more job satisfaction compared to those with some other styles of leaders.

Cons: when employees are empowered to inspire themselves they can lose focus easily, or not know exactly what their output should be. The success of this leadership style also relies heavily on the personality of the leader and the employees completely aligning on their leader’s values and vision. 

Transformational style example

Some of the most famous transformational leaders is Apple’s Steve Jobs, who used transformational management to challenge his team to ‘think different’. 

6. Persuasive management style 

A persuasive management style uses the power of persuasion to influence others to take a particular action or attitude. Under this leadership, the decisions are ultimately in the hands of the leaders. However, persuasive leaders will often communicate the rationale behind their decisions to the team.

A persuasive leader will:

• Use excellent communication skills to influence people
• Appeal to people’s logic, imagination and emotion in their arguments
• Create convincing rationales 
• Ultimately make the decision they want to make without any other input
• Inspire, motivate and rally people towards a common cause

Pros: a persuasive management style can be good to motivate employees towards short-term goals and it can build trust because the leader shares their thought processes to get people on board with their idea.

Cons: using persuasive skills without transparency and authenticity can be seen as manipulative and lead to distrust. If a manager relies on persuasion too much, it can reduce team members’ feelings of empowerment. 

Persuasive management example

Elon Musk uses persuasive management skills (among other leadership styles), using storytelling and hypotheticals to share his business ideas and influence people.

7. Laissez-faire style 

The laissez-faire management style is hands-off, providing employees with the tools and resources they need to do their work, but not providing much day-to-day involvement. Employees are trusted to do their duties and motivate themselves, and enjoy a high degree of autonomy and freedom.

This type of manager:

• Is hands-off 
• Trusts employees to work autonomously, without much involvement
• Gives limited feedback
• Offers a flexible work environment

Pros: a laissez-faire management style can work if the team is skilled and self-motivated. It can build a highly creative and autonomous team.

Cons: without much oversight, there can be inconsistent output, low productivity or motivation, and lack of clarity over individual roles and responsibilities. 

Example of laissez-faire 

Laissez-faire management doesn’t work well for all businesses. Project- and client-based companies, like advertising agencies or financial-management firm, seem to fare the best under this management style. Billionaire Warren Buffet is said to use laissez-faire management skills at the Berkshire Hathaway conglomerate.

8. Paternalistic style 

Paternalistic management styles are often known as ‘family-style’ management, where one person acts like the patriarch or matriarch of the business. Leaders who adopt a paternalistic management style see their employees as a type of extended family, expecting loyalty and obedience. This management style focuses on building trust and respect, and leaders try to take an empathetic approach to leading their team.

These leaders:

• Make all the decisions for their business/family
• Provide support for their team
• Focus on building strong relationships with employees 
• Focus on the long-term stability and success of their company

Pros: a paternalistic management style can help build loyalty and make team members feel supported.

Cons: some team members may feel the manager has favourites or is biased towards others. Managers with this leadership style need to be cautious their workers aren’t blindly following them or becoming too reliant, ensuring they give their own input. 

Example of paternalistic management styles

Henry Ford, founder of Ford Motor Company, opted for a paternalistic approach to leading his company, famously implementing the 40-hour work week. His workers were said to see him as a father figure, leading to a high level of loyalty. 

9. Transactional style 

Transactional leaders take a behavioural approach to management and rely on rewards and punishments to motivate their team. As an example, military leaders are transactional in the sense that their team’s goals are highly structured, and positive outcomes are rewarded, while poor outcomes are punished.

Transactional-style leaders:

• Give direct orders to their teams
• Rely on strict hierarchical organisation
• Do not ask for feedback or input
• Focus on completing short-term goals with efficiency
• Thrive on rules and processes to complete tasks correctly 

Pros: transactional management styles can suit large organisations, where people have very defined roles and deliverables. This type of style works best for military-style organisations, and for emergency services in crisis-response situations.

Cons: this style of management is not suitable for creative environments. The structure is too limiting for creativity and innovation. It’s not considered a very effective leadership style for most work environments.

Example of transactional management style

Howard Schultz of Starbucks is said to have used a transactional management style in the company’s early days. He laid out strict processes that franchise partners around the world had to follow to the letter, that has resulted in a globally consistent and recognisable brand. 

10. Authoritarian style 

Also known as autocratic leadership, this type of management works best in high-pressure environments with motivated team members. Autocratic leaders make their own decisions without input or advice from team members.

These leaders:

• Take charge of all situations, making decisions for the team
•  Establish rules that are clearly outlined
• Create a clear chain of command

Pros: this style can be highly efficient for companies that need fast decisions and action, with leaders making the important decisions and delegating tasks to staff to complete with set expectations. 

Cons: there is often little room for flexibility or change, with clear hierarchies that some might feel too inflexible. Authoritarian leaders rarely take input from team members, which can lead to low creativity, unhappy staff, low morale and low productivity. 

Example of authoritarian leadership

The authoritarian leader takes charge and expects their team members to follow their lead. For example, an authoritarian leader will delegate tasks without consultation and stand by their decision no matter what. 

Choosing the right management styles for your team

Different fields of work, types of teams and work settings require different approaches to management. Some things to consider include:

• The company culture and what creates good team work
• The characteristics of the people in your team and what they respond best to
• If you and your team work in-person or remotely
• How receptive your team are to adopting different management styles
• What will help you and your team meet your organisation’s needs and expectations

Adapting business management styles to different situations

Management styles aren’t a one-size-fits-all solution. You might find that sometimes you have to adapt your leadership style to suit the needs of your team or your goals, and sometimes you switch management styles naturally in response to different situations. Most management positions will require you to use a range of different styles, or adapt the ones you like best, to make your own hybrid style.  

What are the best management styles? Collaborative, visionary, transformational, democratic and coaching styles all tend to have good outcomes, but each style has its own pros and cons, and there’s no single style that will work for all managers, employees and organisations. The best management style is the one your team responds best to – which could be a mixture of styles, or none of the ones listed above. 

If you’re interested in learning more about being a good manager, SEEK’s Career Advice pages include articles on ways to motivate your team, reading recommendations for managers, and advice for first-time managers. If you’re not yet a manager, but wanting to step into a leadership position, there are also tips on how to move from manager to leader.

FAQs 

Which is the best management style?

While the best management style depends on the person, team and company. However, visionary, democratic, transformational and coaching management styles are considered the most effective. These management styles are known as the best methods of motivating and supporting team members, while getting the desired results.

What is the system approach to management and how does it work?

The system approach to management, or system theory, is where the entire company is viewed as one system with a common goal. Rather than each team or person being seen as an individual, employees are seen as part of an interconnected whole. 

How does workplace management impact employee productivity?

Workplace management greatly impacts employee productivity. Management is responsible for:

• aligning performance,
• implementing goals, 
• shaping culture, 
• effectively communicating, and 
• nurturing their people.

Which management style is best suited for startups?

Democratic and visionary management styles are best suited for startups as they are both goal-oriented and highly motivating. Democratic managers or leaders set clear expectations and outline clear goals, while visionary leaders are great at inspiring their team towards a common goal through collaboration. 

Are there any variations of these management styles?

There are many variations of management styles, depending on which model you are following. Authoritarian, democratic, laissez-faire and coaching styles are some of the most common management styles.