7 Management Styles For Effective Leadership

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No business can prosper without effective leadership or management. However, it is not an easy task; many people struggle with managing their workforce in an effective manner.  There are some certain factors that must be considered before selecting a management style, which are:

·      The type of your business

·      The size and nature of the project at hand

·      Your personality and inborn management abilities

·      The attitudes and personalities of your staff

In this post, we will share 7 types of management styles for effective leadership so that you can pick the best one according to your management skills and take your business to the next level.


1. Democratic Management Style

The democratic style is a consultative form of management style and is often referred to as the collaborative, affiliate, or participative style. The method is established on the philosophy that everyone deserves to have a say, irrespective of their title or position.

A democratic style encourages the sharing of ideas and involving your staff members in decision making. It shows your trust in your team by appreciating their input, and also displays your own ability as a leader.

Other than making your workers feel valued, it also leads to increased productivity as your staff’s constant input brings in new ideas and allows them to take on more responsibility for both individuals and team decisions, procedures and results. In addition, you can arrive at better solutions and attain higher results than the decisions made in isolation.

2. Laissez-Faire Management Style

It is a management style with emphasis on employee freedom. Laissez-faire is a French word meaning “let do” in English. Laissez-faire managers allow their workers to do what they want with no to little interference.

Laissez-faire managers do provide guidelines, share information, and answer questions at the beginning and review the results at the end like any other management style and give recommendations for better work in the future. However, instead of micromanaging the employees all the time, there is no oversight during project processes as managers support self-directed teams, and usually get involved if something goes wrong or when the group requests it.

Now, if you have a team of highly-skilled professionals, your business may thrive from this freedom which might lead to high job satisfaction. But if your employees are not self-motivated, or not skilled enough to resolve matters on their own, it can be a disaster for your business.

note-taking at a team meeting

3. Authoritative Management Style

It is an autocratic form of management style that involves managing through clear control. Being an authoritarian manager means to have complete decision-making power, assert strict authority, and expect unquestioned compliance.

The authoritative management style requires a well-defined set of roles, strict hierarchies, and transparent reporting structures. An effective authoritarian leader must be able to continually stay up-to-date on his teams’ work and while making all kinds of decisions.

The authoritarian way of managing could possibly lead to positive employee performance due to its rule-based nature. This works well in environments that lack order and structure, or those with inexperienced employees who require a lot of guidance and instruction. However, extreme authority can lead to a negative workspace, and too tight control can also drive away your best employees.

frustrated boss shouting into the phone

4. Transactional Management Style

The transactional management style takes into account the role of positive rewards such as bonuses and incentives, and actively focuses on supervision, organization, and performance. It is based on the belief that rewards motivate workers, and that employees tend to perform best with a definite and clear chain of command. They would also need to be monitored carefully to ensure that expectations are being met.

In the transactional style of management, companies structure annual or quarterly bonuses based on employee performance. Workers are also reprimanded in cases where they fail to deliver results.

This style can be useful for short and specific periods especially when you want your team to finish a project in a certain amount of time. However, it is not effective in the long run and limits creativity as outcomes now remain award-driven.

 5. Inspirational/Visionary Management Style

It is a consultative kind of style which is also known to be strategic, charismatic, and transformational. It focuses on conveying the overall company and project vision to the team workers. Inspirational managers emphasize on motivating their employees and aligning their team to ensure that everyone is moving in the right and same direction. They also trust their staff members on how to get there.

Inspirational management is not an effortless style. Excellent people skills and a big heart are two major things you need to be an inspirational manager.  

This form of leadership is highly effective when companies bring new changes. It is also effective in getting a divided team back on track by motivating the team towards common goals. However, the lack of emphasis on details can cause issues, especially in the case of new or inexperienced staff members.

6. Coaching Management Style

As the name suggests, this approach involves a lot of coaching and mentoring with an aim at the long-term professional development of your employees.

A coaching manager would focus on employees’ strengths’ development and improvement of their weaknesses. He would motivate his subordinates by providing opportunities for professional growth and career development.

The coaching style of management forms a relationship of respect and coordination between managers and employees. However, only an individual with a high level of expertise and excellent interpersonal relationships will be able to perform coaching and relate well to the employees.

a boss mentors one of his staff members

7. Pacesetting Management Style

In this management approach, the manager sets the pace of work. It is also known as example-setting style because the manager would perform tasks to set an example for the employees and expect the workers to pick up where he left.

This management approach provides freedom to employees to use their skills and employ a self-direct approach towards performing the work that has been exemplified by the manager. If the employee fails to perform as shown, the task is handed over to another employee.

This style can lead to improved engagement and high energy, but it can also create problems if the managers set impossibly high standards.


Whichever style you choose from the above-mentioned approaches, always remember that the best management style is the one that is adaptive, flexible, and suitable to your given circumstances and business.

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