styles of business management

10 Best Styles of Business Management

Uncategorized 29 June 2024 8 Mins Read

Definition of Management Styles  

Efficient team management calls for dedicated skill sets. These skills are not related to your individual working abilities.   

You do not merely need to abide by the timeline and the list of deliverables. However, your role should be to motivate your team members. When your team members support others and participate in an environment of continuous growth, you succeed as a manager.   

Description of Management Styles  

Description of management styles

What are management styles? They are the different ideologies that managers reflect in their decision-making approach. There are three main styles of business management. These are autocratic, democratic and laissez-faire. Some managers are more rigid than others. However, others rely on the skills and abilities of team members.   

Importance of Understanding Different Management Styles  

 As a team manager, you must provide clarity and perspective. It helps the team to understand the management style that you follow.   

Types of Management Styles  

Types of Management Styles

There is a range of benefits to each management style. However, there are suitable contexts for implementing each leadership style. Let’s check out these styles’ features, benefits, and backdrops.   

Autocratic Management Styles  

It is one of the most frequently used management styles. According to Forbes, 21% of American employees want to work under autocratic managers.   

1. Authoritative Management Style  

It is one of the unique kinds of management style. Authoritative leaders mostly follow a top-down leadership strategy.   

It means that they are the sole decision-making authority. They set clear directives and mark the deliverables that others must follow.   

Benefits: efficient in managing crises  

Drawbacks: May result in high turnover  

2. Persuasive Management Style  

The persuasive type is the most acceptable among the autocratic management style types.   

Here, the manager has the prime decision-making authority. However, managers are liable to reflect on critical decisions. They should explain why the decisions are needed.  

How are persuasive decisions better than authoritative decisions?  

The former keeps the employees in the loop. So, there is a greater sense of ownership of employees. As a result, their dedication and efforts are more visible.   

Steve Jobs used this leadership style. He used emotional appeals with a storytelling approach to communicate his decisions.   

Benefits: Helpful while leading a team, lacking experience  

Drawback: Employees cannot share feedback  

3. Paternalistic Management Style  

 It is a one-sided style as well. However, decisions are made in the best interests of the team members. That’s why it is one of the balanced styles of business management.   

How is this different from the other autocratic styles?   

Here, the employees can express their opinions. Ideally, the manager considers their viewpoints while making decisions.   

Benefits: managers are committed to the best interests of their team   

Drawback: All team members must be highly loyal to the managers for this approach to work out   

Democratic Management Styles  

It is a method of distributed decision-making. Decisions are based on the best interests of the team. So, employee engagement is also high. In the US, Google is a remarkable example of a democratic management style.   

4. Consultative Management Style  

Consultative managers seek real-time feedback from team members. They ensure that the team is always in the loop. They also ensure that all team members understand the styles of business management.  

Among various management styles, the consultative style is most suited to breed health communication and interdependence within the team.   

Benefits: a continuous flow of upward feedback  

Drawback: it can slow down the pace of decision-making  

5. Participative Management Style  

Management decisions always consider the employees’ individual and collective interests. In the same vein, Participative managers will always think about their role, career, and growth opportunities while making any decision that concerns them.   

However, all final decisions are taken by the manager.   

Benefits: A participative team generally has the most creative ideas and approaches. But this is the result of continuous brainstorming in the team environment.   

Drawback: delay in decision making   

6. Collaborative Management Style  

Employee satisfaction and team cohesion are most dominant in the thoughts of collaborative managers. In this regard, experts say that collaborative managers enjoy the highest respect among team members.   

LeanTaaS is a collaborative company. Their managers ensure the personal and professional growth of team members alike.   

Benefits: This management style can boost the loyalty and productivity of the employees  

Drawback: strategic planning might be hampered by the lack of consensus among the team members.  

7. Transformational Management Style  

Transformational managers are driven by a dominant goal. They want to create an environment that breeds innovation. However, they also inspire all team members to over-achieve.   

Benefits: All team members are adaptable to the problem-solving styles of business management  

Drawback: Less adaptable employees cannot thrive in a transformational environment  

8. Coaching Management Style  

Coaching types management styles are most dedicated to the employees’ professional development. The coaching managers provide:  

  • Daily feedback  
  • Everyday training  
  • Real-time support  

The USP of this style is the coaches, who try to empower their team members. The objective is to make them self-reliant. When employees learn to take responsibility and ownership of their actions, coaching managers succeed.   

Benefits: employees become self-reliant  

Drawback: it requires time and ample resources to lead the team using this style   

Laissez-faire Management Styles  

It refers to a hands-off management style. Managers allow all team members to work independently. Employees are off their own while working or making decisions during a project.   

Warren Buffet is a popular leader who followed this management style in Berkshire Hathaway.   

9. Delegative Management Style  

The manager will only communicate with subordinates when assigning tasks. After you’ve finished your work, the manager will intervene again. Hence, the cycle will be repeated.   

So, employees enjoy utmost liberty, making it one of the best business management styles.   

Benefits: Employees can think outside the box  

Drawbacks: frequent incidents of internal conflicts within a team   

10. Visionary Management Style  

Visionary managers can handpick team members who can do the work effectively. So, they don’t intervene when the team is on the project. However, they offer help only when help is sought.   

Benefits: Employees can think outside the box  

Drawback: the project outcomes may go astray  

Conflict Management Styles  

Conflict Management Styles

Credible managers ensure seamless communication and absolute transparency in the team. They are also able to manage conflicts easily.   

Importance of Conflict Management in Business  

Your manager should be able to avoid conflicts. It helps the team to be on the same page in a project.  

How does it benefit a business?  

It allows the team to reduce the time taken for a project. The quality of work done is also better, as the team has no distractions.   

Correlation Between Management Styles And Conflict Management Styles  

Conflicts can hinder managers from delegating their leadership perspectives to the team. Hence, any management style may fail if there are internal conflicts within the team.   

Overview of Five Conflict Management Styles  

The Five Main Conflict Management Styles Are As Follows:  

Conflict management styles Features and benefits 
Competing style No regards for others’ opinions Can be used when you need to defend your position badly 
Collaboration Communicating with others to find a mutually beneficial solution Good opportunity to learn from others’ insights  
Compromising  Accepting a solution that mitigates the conflict but doesn’t result in win or loss of any party involved 
Avoiding style Ignoring the need to take any action Can be used to withdraw from any threatening situation  
Accommodating  You allow the opponent to win  Can be used when you decide to choose peace rather than conflict 

When to Use Different Management Styles  

When to Use Different Management Styles

I have already explained that business management styles can be applied to different contexts and situations.   

Situational analysis for choosing the appropriate management style  

You must evaluate the pros and cons of every management style against the situation. For instance, the authoritarian style is suitable for crises.   

Examples of scenarios where each management style is most effective  

Management style  Situational context  
1. Authoritative management style In a crisis 
2. Persuasive management style When employee lack focus in a difficult situation  
3. Paternalistic management style When a team is highly collaborative  
4. Consultative management style When you need to train future top-down leaders  
5. Participative management style When you need creative solutions like ideas for new product  
6. Collaborative management style When you launch a complex project like testing market awareness  
7. Transformational management style When you need to suit your brand in a highly competitive environment  
8. Coaching management style When you are training future leaders with difference in styles of business management 
9. Delegative management style When you are leading a high-performance team, with difference in perspective about styles of business management 
10. Visionary management style When all tam members are equally skilled and competent 

Flexibility in adapting management styles based on the situation  

 There is a set of managers who have mastered the situational leadership style. Considering the level of competition in the US retail and other industries, adaptability can be a significant driver of success. Experts say that situational leaders are the most adaptable.   

Factors Influencing Management Styles  

Factors Influencing Management Styles

There are multiple types of management styles. The adherence to an approach depends on a set of criteria.   

Internal Factors  

The internal factors in an organization influencing the management style are:  

  • Organizational culture  
  • Policies and priorities  
  • Employee engagement  
  • Skill levels of employees  

External Factors  

The external factors have a dynamic impact on the organization. For instance, the Fair Labor Standards Act requires managers to look after employees’ health and career development, alongside their work-life balance.  Hence, a participative management style would be the best.   

In a participative environment, employees can share feedback easily. It also helps managers understand the issues that employees might be facing.   

Here’s a list of external factors that shape the selection of management styles.   

  • Employment laws  
  • Economic conditions  
  • Competition  
  • Suppliers and consumers  


What are the management styles? Well, the ten most typical types of management styles are discussed throughout the article. But the question is how managers can adapt to situational leadership needs and change their approach.   

It’s easy. They must follow mostly the management styles in business. Otherwise, they might set a legacy of their styles as well.   

Management styles may vary according to the situation, internal strengths, and workforce limitations.   

The selection of a wrong management style may lead to high attrition. So, I recommend giving leadership training to managers across all departments before they pick their business management styles.   


Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

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