Managers can make or break employee morale and engagement. And a leader’s managerial style can significantly impact a company’s success. Whether a small business or a big company, how a leader manages their team profoundly affects the productivity, morale, and overall success of the business.  

With this in mind, it’s essential to know the various managerial styles and understand which ones will be the most effective for your situation. It is impossible to have a uniform managerial style across an organization because of the uniquely human element of the individual. However, it is possible to establish a type that fits the organizational culture, values, and vision.

Here are 10 of the most effective managerial styles and the pros and cons of each

Autocratic leadership  

Autocratic leadership has the manager taking complete control of decision-making and delegating tasks without consulting their team. This style can be effective in certain situations, particularly when quick decisions need to be made. Autocratic managers can adopt an authoritative, persuasive, or paternalistic style. However, it can lead to a lack of creativity and innovation, as well as a lack of motivation among team members, and will diminish the employee’s sense of ownership. 

Pros   

1. A clear chain of command is established, allowing for quick decision-making.
2. Employees have a clear understanding of their roles and responsibilities.
3. The manager has ultimate authority and control, allowing for efficient workflow.
4. Management has the flexibility to respond quickly to changes in the external environment.

Cons 

1. The manager’s decisions may not always be in the company’s or its employees’ best interests or in line with the company’s mission, values, and goals. 
2. Employees may become demoralized and demotivated due to a lack of autonomy.  
3. The manager’s decisions may not be well-informed or thought out, leading to poor performance.  

Democratic leadership  

Democratic leadership, by definition, brings the team in for decisions and inputs. This management style encourages creativity and initiative and can lead to a more motivated and productive team. It is crucial to ensure proper direction and zero red tape, as it will slow down the work process.  

Pros   

1. Allows for open dialogue and encourages collaboration between managers and employees
2. Encourages innovation and creativity
3. Promotes respect and trust between employees and managers
4. Empowers employees to take the initiative and be accountable for their work
5. It helps create a positive work environment

Cons   

1. Time-consuming as managers need to consult with employees before making decisions
2. Employees may feel overwhelmed if they have too much decision-making power
3. It can lead to conflicts between managers and employees if there is not enough guidance and direction
4. Difficult to implement in larger organizations with multiple layers of management

Collaborative leadership 

The collaborative managerial style effectively creates a work environment that allows for greater collaboration and creativity. It encourages employees to take the initiative and allows for more open communication. Ultimately, this leadership style can lead to improved productivity, higher morale, and greater job satisfaction. 

Pros 

1. Enhances team spirit and collaboration
2. Encourages employees to take ownership of decisions
3. Allows employees to leverage their strengths
4. Enhances communication and problem-solving skills
5. Creates a culture of trust and respect
6. Promotes creativity and innovation
7. Increases employee motivation and engagement

Cons 

1. Time-consuming and slow decision-making
2. Leads to disagreements between team members
3. Require additional resources to manage the collaborative process

Laissez-Faire leadership  

Laissez-faire leadership involves the manager giving their team complete freedom to make decisions and complete tasks. This style offers more autonomy for the team as long as it doesn’t become a ‘too many cooks spoil the broth situation. While freedom equals creativity, it can also lack cohesive action, with each team member going in different ways, affecting the workflow. 

Pros  

1. Managers allow employees to be innovative and creative.
2. It encourages employees to take responsibility for their work.
3. Results in higher job satisfaction and motivation
4. It promotes independent decision-making and problem-solving.

Cons   

1. A lack of direction and accountability due to minimal supervision
2. A lack of structure can lead to a chaotic working environment.
3. Poor coordination between teams and departments
4. Increase in errors and inefficiencies due to lack of oversight

Transformational leadership 

Transformational leaders have an opportunity to inspire the team with a vision for the future. This style effectively motivates teams and can lead to high levels of creativity and innovation. However, it can also lead to unrealistic expectations and an overreliance on the manager. 

Pros  

1. Promotes higher levels of creativity and innovation, encouraging employees to think outside the box
2. Higher levels of innovation and productivity
3. Increases motivation and morale, as employees are encouraged to strive for excellence by providing them with a sense of purpose and direction.
4. Develops strong relationships between the leader and the team members
5. Foster trust and respect, leading to improved communication, collaboration, and productivity.

Cons  

1. Not always effective because it is not suitable for every situation
2. Challenging to develop a strong relationship between the leader and the team members in certain contexts
3. Can lead to micromanagement, especially if the leader is overly focused on the details of the project or task
4. Decreased motivation and morale among employees
5. Lead to burnout if the leader is not providing enough support and guidance to the team.

Consultative leadership 

Managers seek input from their team, taking every team member’s viewpoint. While the manager may make the final decision, it will be based on the information from the team. This style is a standard practice among specialized fields. 

Pros 

1. Encourages collaboration and open communication between managers and employees
2. Listens to employees and takes their opinions into account when making decisions.
3. Empowers employees to take ownership of their work and be more creative in problem-solving.
4. Increases morale and job satisfaction among employees

Cons  

1. Time-consuming and labor-intensive
2. Difficult to maintain if the manager is not consistent in their approach
3. Limits the speed of decision-making as the manager needs to take everyone’s opinion into account.
4. Can cause confusion if the manager is not clear in their expectations of employees.

Delegation-style leadership 

The delegating style emphasizes the transfer of authority and decision-making from the manager to the employees, allowing employees to take on responsibility and autonomy. Delegating also encourages employees to think critically and independently for quicker problem-solving and better decision-making. Managers empower their employees and create an environment of trust and respect. 

Pros  

1. Allows for the delegation of tasks and responsibilities, allowing managers to focus on the bigger picture of the organization.
2. Leads to increased employee motivation and job satisfaction, as employees can take on new responsibilities and challenges.
3. Encourages employees to take ownership of tasks, which can lead to improved efficiency and self-development.

Cons  

1. Time-consuming and requires coaching and guidance to ensure tasks are delegated effectively.
2. It can cause confusion with a lack of direction if tasks are delegated to the wrong people or if tasks are not clearly outlined.
3. If not monitored and managed properly, it can lead to a lack of accountability.

Visionary leadership 

Visionary leadership involves managers using their vision to inspire and motivate their teams. This style can effectively motivate teams and lead to high levels of creativity and innovation. However, it can also lead to unrealistic expectations and an overreliance on the manager.  

Pros  

1. Encourages creativity and innovation
2. Promotes outside-the-box thinking
3. Encourages employees to take risks
4. Allows for quick decision-making
5. Encourages collaborative problem-solving

Cons  

1. It can be too controlling
2. Not be well-suited to all situations
3. Leads to unrealistic expectations and a lack of structure and accountability
4. Lead to burnout if expectations are too high

Participative leadership 

Participative leadership involves the manager allowing their team to have more input in decision-making. This management style can lead to improved morale and productivity and increased creativity and innovation. However, it can also lead to a lack of direction and slow decision-making.  

Pros  

1. Increased job satisfaction by promoting an environment of collaboration and involvement
2. Improved decision-making by getting input from different perspectives
3. Increased employee commitment as they have a say in their work.

Cons  

1. Time-consuming as it requires a lot of meetings and discussions
2. Difficult to control if too many opinions and ideas are involved, leading to confusion and conflict
3. Hard to define roles and responsibilities when everyone is involved in decision-making

Coaching leadership 

Coaching leadership involves the manager helping and guiding their team to reach their goals. This style can be very effective in creating a supportive and productive environment and improving morale and productivity. However, it can also lead to an overreliance on the manager and a lack of independence.  

Pros  

1. Encourages open communication and collaboration between manager and employee
2. Allows employees to take ownership of their work and develop their skills.
3. Encourages creative thinking, problem-solving, and decision making
4. Focus on developing employees’ skills rather than just delivering orders.

Cons  

1. Time-consuming for the manager.
2. Lead to employees feeling micromanaged.
3. Requires a high level of trust between the manager and the employee
4. Not suitable for all employees, depending on their skills and abilities.

Facilitative leadership 

Facilitative leadership involves the manager working collaboratively with their team to achieve goals. This style can be effective in creating a high-functioning team and can lead to improved morale, productivity, and creativity.  

Pros 

1. Encourages open communication and input from team members
2. Creates a collaborative atmosphere that can lead to better problem-solving.
3. Develops a sense of ownership and responsibility among team members
4. Allows team members to work independently and take ownership of their roles.
5. Can be effective in managing change and adapting to new circumstances.

Cons  

1. A lack of accountability if team members are not adequately supervised
2. Challenging to implement in an organization used to a more hierarchical structure.
3. Time-consuming as team members must be trained and consulted on decisions
4. It can be overwhelming if the facilitator is not experienced in the role.
5. Create conflict if team members have different opinions.

There are several managerial styles, but they fall broadly under the autocratic, democratic, or laissez-faire styles. What comes through is that managers have to be true leaders with essential characteristics, for instance: 

• Possess strong leadership qualities to motivate their team and guide them towards success. They must be able to provide direction and support to their staff while delegating tasks and accepting responsibility for their team’s performance.
• Have effective communication skills, both verbal and written – they must also be able to actively listen to their team and understand their needs and concerns.
• Managers must identify and solve problems quickly and effectively while also being able to anticipate potential issues and develop strategies to prevent them from occurring in the first place.
• Managers must be highly organized to effectively manage their team and ensure that tasks are completed on time and to the highest standard.
• Managers must have sound decision-making skills to make the best decisions for their team and the company.
• Managers must be able to motivate their team members by providing them with a clear understanding of the company’s goals and expectations. They must also be able to recognize and reward exemplary performance.

Additionally, managers must adapt to changing situations to ensure success and foster a positive work environment. 

Wrapping up 

When deciding which managerial style to adopt, it’s essential to consider your team’s specific needs and the organization’s goals. Ultimately, the appropriate managerial style will depend on your individual situation, but the ten styles outlined above are all effective in their ways. Internal culture, policies, and processes will play a part in the organization’s managerial styles, and so will the labor laws, regulations, and the market.