7 Types of Management Styles for Effective

Leadership

1. Authoritative

An authoritative manager follows a top-down approach to leading. In this style,

managers make decisions almost entirely alone. They set clear and specific policies
that everyone must follow, and they typically don’t request feedback from employees.

 Advantages: This style is useful when efficiency is important and in

crisis situations when it’s necessary to make effective decisions quickly.
 Disadvantages: New and innovative ideas rarely emerge in an
authoritative management style, and when applied in the wrong
circumstances it can also lead to higher turnover.

Example: Many restaurants use an authoritative management style. Diners come in

expecting orderly service and quality food. Since most restaurants run on slim margins
and suffer from even small mistakes, authoritative management works well to keep
everyone focused on results and efficiency.

2. Consultative

Consultative managers ask employees for feedback consistently and take employee
concerns seriously. They often have an open-door policy that encourages employees to
share what is and isn’t working in the organization. While managers will consult with
employees, they ultimately retain sole decision-making power.

 Advantages: This type of management style often leads to higher

employee engagement, stronger problem-solving as a team and less
turnover.
 Disadvantages: A consultative management style isn’t always as
efficient as an autocratic style since more people are involved in making
decisions.

Example: A team leader of a project holds weekly one-on-one meetings with each of
the other team members. They are asked to share progress on their responsibilities,
what they think is going well and what they think needs improvement. The team leader
uses this feedback to set schedules, allocate resources and prioritize goals for the
following week.
3. Democratic or participative

A democratic or participative manager’s decision-making process is heavily influenced

by their employees. This style includes effective communication and openness through
all levels of the organization, and employees and managers work together to reach the
goals of their vision. Democratic management style is especially effective when it comes
to making long-term decisions that impact the whole company.

 Advantages: This style typically leaves employees feeling valued and

empowered to contribute in meaningful ways. It also encourages them
to tap into their full potential at work.
 Disadvantages: Like the consultative management style, it’s also not
as efficient. Decision-making often involves debates and consulting
multiple parties, which can take time.

Example: Store managers often use the democratic or participative management style.
They’ll hire team members who can work together to complete store layouts, marketing
campaigns and customer service. These managers act as a moderator to help their
team move forward with their ideas and are available to answer questions.

4. Laissez-faire

In the laissez-faire management style, managers are more like mentors than leaders.
They’re available when employees need guidance, but they often let employees make
decisions on their own about how to move forward with projects. Laissez-faire
management has numerous similarities with another style called “management by
walking around.” In this management style, managers monitor what’s happening with
employees, but don’t become too involved with the day-to-day tasks or projects.

 Advantages: The laissez-faire style can be effective because it gives

self-motivated employees the autonomy and space they need to be
productive. This could be particularly useful in a creative environment.
 Disadvantages: Because this management style is hands-off, it can
leave some employees feeling neglected or in need of guidance and
direction.

Example: Given the unpredictable nature of the fashion industry, allowing fashion
buyers the freedom to choose their own products often works best. As long as they are
knowledgeable and passionate, individual buyers are typically much more in tune with
fashion trends than management.

5. Persuasive
Persuasive managers hold control of decision-making but work to help employees
understand why decisions made by management are best for the company. They share
an honest rationale behind decision-making policies that can foster an inclusive and
trusting environment. When an organization is successful, employees generally accept
top-down decisions and work hard to implement them.

 Advantages: This style instructs and motivates employees with reason

and logic, which some individuals prefer to authoritative management. It
can be especially helpful when leading a less experienced team.
 Disadvantages: While persuasive management isn’t as dominating as
authoritative management, it’s still a one-way communication process
and employees don’t necessarily have an avenue to give feedback.

Example: Consider what happens when an outside expert, such as an independent

consultant, comes in to analyze the operations of the company. Employees might be
skeptical of what the consultant has to say and they might be reluctant to implement the
suggested changes. Persuasive managers will be able to convince employees that the
expert’s criticisms and recommendations are valid.

6. Transformational

A transformational management style focuses on creating an environment that supports

innovation. Leaders with this style often push their employees to set and reach goals
even if it makes them slightly uncomfortable. These managers collaborate with and
inspire direct reports to reach past their full potential and aim for professional growth.

 Advantages: Adaptability, problem-solving and innovation typically

increase with this management style. It can be especially useful for
companies in competitive industries that change quickly.
 Disadvantages: This management style requires the right kind of
employees. If they’re not ready to adapt or too many changes occur too
quickly, they might not be willing to follow top-down ideas.

Example: You can often find transformational managers in the technology industry.
These managers are constantly adapting to the market, and they challenge and inspire
their employees to create extraordinary products.

7. Collaborative

Collaborative leaders work closely with their team members and believe that when
people feel personally and professionally fulfilled, they’re more effective and more likely
to produce great work regularly. Because of their emphasis on employee satisfaction
and teamwork, they tend to achieve higher levels of respect.
A collaborative leader is an excellent leadership style for organizations of any industry
and size, but is especially prevalent within nonprofits. These types of leaders are
exceptionally skilled in building employee morale and helping people re-engage with
their work.

 Advantages: Collaborative leaders have the capacity to boost

employee loyalty and productivity, improve employee development and
decision-making, cultivate trust and create future leaders. They are also
typically more in-the-know when it comes to challenges of getting work
done on their team.
 Disadvantages: Collaborative leaders can become burnt out as they
attempt to boost collaboration with and between their team members.
They might also find it difficult to create time and space for high-level,
strategic planning.

Example: A nonprofit product manager hosts monthly one-on-one coffee meetings with
everyone that has concerns, questions or thoughts about improving or using the product.
This time is meant for her to address the needs of and help those who are using the
product in any capacity.