Why is it important to understand management style if you are an hr professional or manager?

Before you ran a business you probably encountered lots of different managers in the course of your career, some good some not so good. And you probably picked up a few of their skills along the way.

With management styles, there is no one-size-fits-all and different personalities will manage people in different ways. But it is important to adopt a style that suits you and gets the best out of your staff, because how you manage them can make or break your business.

Why your management style as a business leader is important

As a business leader you want to get the best out of your staff and the greatest leaders know how to motivate and encourage their staff to get them to perform tasks willingly, efficiently and effectively. A great management style will achieve what you want, empowering your workers and creating higher job satisfaction.

Your style may be commanding or it might be collaborative. You might be more of a visionary or you could use a coaching style. Some people stick to the same general style whoever they are dealing with, others will adapt their style depending on the person in question .

As much as ability, skills and innate intelligence will have an impact on how well a worker does a job, how high their self-esteem is can have an even bigger one – you can have the best team in the world but if your management style is poor it will impact performance.

The six management styles according to Hay-McBer

Hay-McBer splits management styles into six different categories:

1. Directive

If you use the directive style you’re the sort of person who expects compliance from their employees. You tend to want employees to do things the way you want them to and get them to comply by making threats and using discipline.

This can work to your advantage in highly pressured environments when you need to get things done in a certain way and any move away from that could be a risk. However, it can also demotivate employees who can feel you’re watching their every move.

2. Authoritative

Bosses and managers who use an authoritative style prefer to give their employees more of an overall vision rather than specific instructions. If you adopt this style you tend to motivate through persuasion and feedback. It’s great when you’re seen as a credible leader and when clear directions are needed but not so good with junior employees who need more specific direction on what they should be doing.

3. Affiliative

An affiliative boss tries to be everyone’s friend. They promote harmony and aim to create a positive relationship between senior and junior staff. If this is your style you probably don’t enjoy conflict and instead try to motivate by keeping everyone happy.

This works if employees are performing routine tasks and can help when conflict arises in the workplace. However, it’s less effective when dealing with a crisis when firm leadership may be required or when staff are not competent in their job.

4. Participative

If you follow a participative style you tend to lead by consensus rather than directing employees. You encourage input from all your employees, valuing all opinions and you reward team effort.

As with the affiliative style, it works well when things are on an even keel, your staff are experienced and know their jobs and there is no crisis to trip you up. It works less well when staff are not co-ordinated or when a problem arises and clear direction is required.

5. Pacesetting

As a pacesetter you have extremely high standards and expect staff to adhere to them, to follow your example. It’s great when people are already competent, motivated and know what they’re doing. It is less effective when employees need developing and can lead to some feeling like they are inadequate.

6. Coaching

If you employ the coaching style you tend to focus on the long-term professional development of your employees. This is great because you can help your staff improve their strengths and ultimately boost their performance.

It’s less useful when you lack the expertise to coach them. You might also persist in keeping someone on when really their skills gap is too great and you should let them go.

Putting management styles into practice

You may identify with one particular management style more than others but you don’t have to stick to just one management style. Ask yourself which one best suits your leadership style but also consider what style best suits your staff members. Some will function better under a directive style, others will thrive with a coaching approach.

You need to be flexible however, and adapt your style to suit the employees and situation you are dealing with. Smart leaders realise that one size does not fit all and they work within those different styles to get the best out of their staff.

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

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

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.

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.