10 Effective Management Styles for Leaders (With Real-Life Examples)

Ten Types of Management Styles with Real-life Examples

There are lots of different ways to lead, and each one has its own set of characteristics. Here are ten different types of management styles:

1) Autocratic Management Style

Autocratic management is one of those management styles that refers to centralized decision-making in which the manager has all the power and goes through no one for legal input from the team. 

The most suitable to apply in cases where there is a need to act now, such as during an emergency or when handling a crisis. However, it could lead to the lack of morale within the team and the lack of creativity since the employees may think that they are not heard. In order to maintain a good working environment, there should be a balance between decisions made by the autocratic managers with their team when it is necessary.

Characteristic of the Autocratic Style of Management.

Steve Jobs, one of the co-founders of Apple Inc., is a leader who is believed to have been an autocratic leader. He made very few consultations with the team in decision-making and had a vision.

His method was utilized to produce the most amazing products (e.g., iPhone and iPad), but it also means he created an almost impossible work culture around him through his standards and high control. There are various styles of business management leadership style. 

Autocratic management leadership is ideal for businesses in which the leader decides things on his behalf with less team involvement. Business management training courses in Sprintzeal help you to improve those leadership skills, such as after gaining CBAP or CCBA.

Why It Works:

• This one of the management styles ensures quick decision-making by having a single authoritative leader.
• Effective when clarity and strict rules are essential.

Challenges:

• Can limit creative input and team collaboration. 
• Risk of demotivating employees who seek autonomy.

Best Fit: Crises or industries with minimal error tolerance.

2) Democratic Management Style

Democratic management involves team members in decision-making processes. Managers listen to the team and accept collective advice in decision-making. This enables a culture of ownership and empowerment that drives higher job satisfaction along with improved creativity within the team. It works well in organizations where collaboration and innovation are essential.

Example of Democratic Management Style

CEO Mary Barra of General Motors is known as a democratic leader. She is not afraid to ask for her team during times of decision, and they work together. GM has it all; under her reign, innovation was born with employees being appreciated and pitching in for the good ship.

Why It Works:

• One of the best leadership styles in management for fostering teamwork and creativity.
• Promotes:
  Free flow of information and different thoughts.
• Difficulties:
  The process of making decisions is slowed down.

There is a probability of conflict when the opinions of various parties clash, hence the conflict management styles are required to address the differences.

Best fit: Problems and innovative situations.

3) Laissez-Faire Management Style

Richard Branson (the founder of the Virgin Group) practices the laissez-faire leadership style. He provides his teams with a lot of freedom. He also leaves them to make their decisions. This method is most effective when there are self-motivated skilled people who will not require much supervision. It encourages independence where team members take up leadership roles in making decisions. However, when the motivation or experience of the teams is lower, it can lead to misunderstandings and a lack of instructions.

Laissez-Faire Management Style example.

Richard Branson, the founder of the Virgin Group, has the laissez-faire leadership style. He provides his teams with a lot of freedom and leaves them to make their decisions. This approach has allowed Virgin to expand into various industries, from music to airlines, with each subsidiary operating with a high degree of autonomy.

Why It Works:

• Gives the employees freedom and encourages creativity and responsibility.
• Collaborates with highly motivated, very skilled teams.

Challenges:

• May end up in confusion and loss of direction.
• Difficult for teams that require structured guidance.

Best Fit: Creative industries and research sectors.

4) Transformational Leadership Style

Transformational leadership is aimed at motivating and inspiring the team with the help of a clear plan. This kind of leader is focused on goals that present some sense of passion and purpose.

They promote loyalty, creativity, and originality to attain the goals of an organization. They inspire the team they lead and make sure they perform above and beyond.

Transformational Leadership Style: Example

Elon Musk is one of the most famous transformational leaders in the world and the CEO of both SpaceX and Tesla. He has led his teams to have bold aspirations in the field of space exploration and clean mobility. Musk's ability to inspire and encourage innovation has made groundbreaking electric vehicles and decisive rocket launches.

Why It Inspires:

• Inspires teams to undergo change and attain new objectives.
• It is one of the most frequently mentioned leadership styles used in management to be innovative.

Challenges

• Must exhibit constant flexibility and vision.
• Is able to overwhelm change-resistant teams.

Best Fit: Technological startups and organizations that aim at fast expansion.

5) Transactional Leadership Style

Transactional leadership is a performance-based rewards and consequences system. The managers communicate and enforce the expectations; the team members are told to follow through specifically. The style is useful in keeping efficiency and attainment of certain targets. It provides a well-organized workplace that has a distinct chain of command.

Transactional Leadership Style: Example 

Jack Welch (former General Electric CEO) was a typical transactional leader. He set standards of performance and also rewarded the best performers. This strategy contributed to making GE one of the world giants, focusing on productivity and responsibility.

Why It Works:

• Concentrates on goals, performance measures and rewards
• Suits in the short-term goal-oriented accomplishment.

Difficulties:

• May be stiff and uninspiring.
• Lacks focus on innovation and creativity.

Best Fit: Organized jobs like sales teams.

6) Servant Leadership Style

Servant leadership is more preoccupied with the needs of the team members. The leaders that apply this kind of leadership become mentors who provide guidance and support to help the team members to grow and succeed. They are primarily concerned with hearing the issues of their team members and attending to their needs. The strategy helps in creating a good rapport and developing trust and loyalty among the team.

The media tycoon and philanthropist Oprah Winfrey is one such leader whose leadership styles can be applied in management, particularly servant leadership. They are primarily concerned with hearing the issues of their team members and attending to their needs. The strategy helps in creating a good rapport and developing trust and loyalty among the team.

Servant Leadership Style: Example 

Oprah Winfrey (media tycoon and philanthropist) shows leadership approaches in management, especially servant leadership. They mostly focus on listening to the concerns of their team members. It also addresses their needs. The approach builds strong relationships. At the same time, develops trust and loyalty within the team.

Why It Works:

• Among the best management styles to adopt in professional development.
• The workers are encouraged to hone their skills and develop in the organization.

Issues:

• It is quite time-consuming and requires patient leadership. 
• It cannot be applied in situations of urgent decision-making.

Best Fit: Organizations that focus on employee development and talent management.

7) Charismatic Leadership Style

Charismatic leadership is based on the individual leader giving a personal appeal and having the capacity to motivate others. These leaders use their charisma and compelling styles of communication to push the troops. They have a magnetic quality they use to pull others in and are very convincing with their one guiding vision, or shared goal.

Example of Charismatic Leadership Style

Steve Jobs, in addition to his autocratic tendencies, was also known for his charismatic leadership. He had gotten away with his product launches and persuasive delivery that earned him some following among Apple lovers; also, dedicated employees started going above and beyond.

Why It Works:

• Gives attention to the needs of the team and creates an excellent working culture.
• Helps create trust and loyalty.

Difficulties:

• Is able to confuse the boundaries of authority.  
• May slow down decision-making.

Best Fit: Organizations emphasizing team collaboration and well-being.

8) Coaching Leadership Style

This coaching leadership style is focused on mentoring and development of skills. The leaders who use this style are interested in assisting the members of the team to advance their skills and realize their potential. They give positive feedback, establish objectives, and give direction to support growth and career advancement. This methodology is responsible for making the workplace conducive as well as supportive.

Eric Schmidt (the former CEO of Google) adopted this coaching leadership style. He mentored and coached his team. Along with this, he improved their competencies.

Google has benefited from Schmidt's coaching style of technology's high-level success.

The current CEO of Microsoft is Satya Nadella—the Executive Chairman and CEO—who preaches empathy and love for the coaching management style, where employee development is key to cultivating a culture of growth. 

He has been instrumental in reshaping both the culture and success that Microsoft has enjoyed.

Why It’s Essential:

• Concentrates on team conflict resolution to ensure productivity.
• Helps promote a peaceful working atmosphere.

Difficulties:

• May be emotionally strenuous on the part of managers

Best Fit: Diverse teams where differences are common.

9) Strategic Leadership Style

Strategic leadership is about the future, and it demands a long view in decision-making. Decision style thinks in terms of organizational vision and goals as well as about where to want to go. They make interpretations, envision, and act in a strategic alignment with the organization as a whole. Such an orientation is essential in organizations that have long-term success and competitiveness goals.

Strategic Leadership Style.

The best case in point is Indra Nooyi (former (retired) CEO of PepsiCo on behalf of Mercola). On her part, she was making shrewd decisions that would be in line with the future strategy of PepsiCo (healthier products and sustainability, etc.). The vision of Nooyi resulted in growth and expansion of the organization into other countries.

Why It Works:

• Focuses on achieving targets with precision and efficiency.
• Helps enhance productivity and deadlines. 

Problems:

• May does not care about the welfare of employees and creativity.

Best Fit: Project management and operations-driven sectors.

10) Bureaucratic Leadership Style

Bureaucratic leadership is very much dependent on the obedience to rules and preset procedures.

Of particular relevance in more tightly regulated industries or organizations where policy compliance, precision, and consistency are obligatory. Bureaucratic leaders make sure that every member of the team adheres to the set procedures in order to uphold order and conformity.

All these management styles have their peculiarities and areas of use. Good leaders understand when to make use of each style. They do it depending on the particular situation and the organizational objectives of the team to achieve the best outcomes.

Bureaucratic Leadership Style: Example 

Robert Mueller, once the Director of the FBI, possesses bureaucratic leadership.

There was a need to follow the rules, procedures, and protocols strictly as they are related to national security in his job for the FBI. The leadership of Mueller ensured that the FBI remained within the law and maintained its reputation.
Real-life examples of different leadership styles are above to show that each of these styles can be very effective depending on contexts and kinds of businesses. The style of each leader was the reason behind the success of their organization and left a lasting legacy in the field.

Why It Stands Out:

• Combines different management styles based on team needs.
• Offers flexibility to adapt to changing business scenarios.

Challenges:

• Requires strong leadership skills to maintain balance.

Best Fit: Organizations that handle diverse projects and dynamic environments.

Culturally Responsive Management

The management styles of cultural responsiveness acknowledges the fact that each leader enters the profession with a personal past, identity, and experience that they have lived through—and that these attributes are heavily reflected in their management approaches.

Similarly, the cultural background of your team members affects their interpretation of communication, reaction to authority, and reaction to workplace expectations. This dynamic can be understood to enable leaders to build environments that allow everyone to feel respected, supported, and empowered to perform well.

Depending on your upbringing and experiences, including your geographic location, socioeconomic status, race or ethnicity, gender identity, neurotype, or religious background, will affect the decisions you make, the feedback you provide, the priorities you have, and the relationships you form. 

These are some of the factors that tend to influence the leadership management styles that you have a tendency to follow in management. To illustrate, a person who was brought up in a very hierarchical culture can be more directive-oriented, whereas a person brought up in a collaboratively oriented culture may be more participatory or more favorable to the collaborative approach to leadership and management.

The same can be said about your employees. Their identity, affinities, and personal experiences determine their expectation of a leader and their reaction to different forms of leadership in management. Certain team members can be organized and guided, whereas others can work well with a free hand and unstructured direction. Through such preferences, managers will be able to make changes to make them inclusive and fair.

A culturally responsive leader is keen on applying various management styles to address the needs of different people. It does not imply that you should give up your genuine leadership identity, but it does imply expanding your skills base so that you are able to apply the most appropriate leadership styles in management depending on the situation and the individuals involved.

When leaders comprehend and use various forms of management styles, they will have created an environment where differences are not only accepted but also used as an advantage.

Finally, selecting an appropriate leadership style for managers in a multicultural or diverse team will make sure that each employee, no matter his/her background, feels important, comprehended, and preconditioned to be successful. It enhances communication, fosters trust, and helps in the culture of the workplace, where every individual has the tools that they require to make a meaningful contribution.

Why Choosing the Right Leadership Management Styles Matter?

To be a successful manager in the evolving business world, it is critical to comprehend and implement the appropriate leadership management styles to develop high-performing teams and overcome the present-day rapidly changing business environment. The greatest benefit of a blended approach is the opportunity to combine various approaches depending on the maturity of a team, complexity of a project, and priorities of an organization. Such flexibility is particularly useful in the workplace, where the needs change rapidly, and no particular style can be applied to all situations.

Why This Approach Stands Out

A transformational leader is able to easily transition between directing, coaching, supporting, and delegating because they are able to modify their management styles of leadership. This skill makes sure that the teams get what they require at every phase of a project.

 Indicatively, new employees might need to be guided in a systematic way, whereas the long-standing team members might be comfortable with increased freedom. These are effective illustrations of management style modification that can be used to maximize performance.

Challenges to Consider

Although versatile leadership and management styles have numerous benefits, they also demand high self-awareness, emotional intelligence, and effective communication. 

The balance is often hard to maintain—especially when dealing with managers who tend to be biased to a particular dominant style. Lack of thoughtfulness may make leaders inconsistent or vague, and the result is that the teams may be left with no clue of what is expected of them.

• Best Fit in Dynamic Organizations.

This flexible style is especially effective in companies dealing with varied projects or ones that are in rapid industries.

Managers who comprehend and hone their leadership style with leaders are able to bring some stability during times of uncertainty, tune the teams to changing objectives, and provide unperturbed movement even during the fast-paced change.

• Increases Productivity and Performance.

The choice of appropriate leadership management styles will have a direct effect on the attainment of goals and organizational productivity. 

By adapting to the needs of the team, the employees are more concentrated, inspired, and productive, which eventually leads to improved financial performance and better performance over the long run.

• Improves Staff Motivation and Spirit.

Employees feel appreciated and acknowledged when leaders align their styles to the situation. This helps to create a positive environment in which people feel appreciated, which increases their engagement and cooperation, and the turnover is greatly reduced.

• Enhances Interpersonal Skills and Trust.

Managers who have knowledge of different management styles will be in a better position to provide transparent feedback and expectations as well as provide an open dialogue. 

This transparency helps to create trust and enhance bonds in the team, making people more willing to communicate.

• Increases Adaptability and Flexibility.

The contemporary organizations are under continuous change—whether it is the change of the markets or the emerging technology.

With the ability to adapt leadership management styles, managers are able to change their approach to leadership fast and easily, enabling the team to cope with the challenge and continuing to move forward even in a volatile environment.

• Nurture Fosters Authenticity and Self-Awareness.

The examination of various examples of the management style assists leaders to determine their inclinations and the areas that they need to improve. 

This self-awareness stimulates more genuine leadership, and it provides a platform of genuine development.

• Pushes Strategy and Innovation.

The leadership style that is appropriate to managers affects the level of implementation of the strategies.

Empowering and flexible styles promote innovation and problem-solving, whereas too strict ones inhibit innovation and reduce long-term success.

How to Find Your Management Style?

The initial move towards being a successful leader is the attempt to find out what your management style is. The steps below can be used to obtain your personal choice:

• Self-evaluation:
  Find out about your values, strengths, and weaknesses. Consider your communication pattern and decision-making.
• Watch Other Leaders:
  Learn the management styles of good leaders, both in and out of your industry. Find features that you like and are able to apply to your personal style.
• Get Feedback:
  Get feedback from colleagues and team members. Their feedback can offer useful opinions about your leadership approach.
• Experiment:
  Be a manager with various management styles in various situations. Evaluate their performance and make use of the results.

What do you do to enrich your management styles?

Management is a continuous growth and advancement process. The following are some of the tips that can be used to improve your management skills:

• Communication: Communicate your vision.
• Empathy: Be aware of the needs of your team and be empathetic.
• Adaptability: Be able to be flexible.
• Learning: Keep abreast with management trends.
• Delegation: Empower your team through delegation.
• Conflict Resolution: Handle conflicts constructively.

You can also explore the growing demand for Sprintzeal's CSM Certification Training, which is not limited to Scrum and managerial professionals. It also covers vital leadership and management skills designed for all managers.

No organization can operate effectively without good leadership, but building a successful management style can be difficult. Achievements, organizational values, and retention practices are the results of the use of different styles.

Exactly what sort of leadership do you have? How do you encourage and contribute to your group's achievement?

The Bottom Line

Leadership is not a universal concept. Situations require different management styles and effective leaders need to be able to adapt to the requirements of their team and organization.

You can cultivate your own successful management style by understanding the various management styles and learning the lessons by looking at real-life examples. One should keep in mind that leadership is a lifelong journey of improvement. It is all about being a leader of purpose, authenticity, and unwavering commitment towards the success of your team.

Overall, no matter which management style you can relate to—transformational, strategic, or any other—what matters is your ability to motivate, inspire, and lead your team towards achieving a common goal. Leadership is a dynamic journey that improves with time and self-understanding and therefore makes it a very exciting and rewarding journey for all leaders.

Our training programs are all-inclusive; we have courses that are beginner-level and those that are advanced. Ask our course expert or post your questions in the chat box to get help. Signing up for the Sprintzeal newsletter is also available at the bottom to keep informed, acquire useful insights, and stay on top of the career ladder.

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FAQs

What are the 4 leadership styles in management?

The four popular theories of leadership are autocratic, democratic, laissez-faire, and II. transformational. They take totally different approaches to motivating and leading teams.

What's the best management style?

The situation and team dynamics will determine the best management styles, but collaborative and flexible approaches like transformational and democratic are frequently the most successful.

What is style management?

"Management style" is a term that is used to describe a specific approach or strategy of a team that the leader applies in order to motivate, inspire, and be involved in the organizational objectives.

What are the 4 types of management?

The four main management tasks on which the organization's operations are built are planning, organizing, leading, and controlling. 

What are the downsides of autocratic leadership? 

The downsides of autocratic leadership include stifled creativity, low employee morale/engagement, high dependency on the leader, lack of innovation, poor communication, and increased mistrust, as employees feel undervalued, lack autonomy, and are discouraged from providing feedback, leading to disengagement and potential burnout for the leader. 

This style often creates a fearful, top-down culture where mistakes can escalate because subordinates fear reporting issues, hindering growth and problem-solving. 

There are actually certain downsides of autocratic leadership. Now these are

1. Stifled creativity
2. Less engagement of the employees
3. Growing distrust 
4. Decline in engagement. This leads to burnout for the potential leaders. 

What types of businesses benefit most from laissez-faire leadership?

Industries or businesses from creative, research, and tech fields benefit mostly from laissez-faire leadership. They are usually those with independently driven experts in competitive environments such as advertising and entertainment. This is mainly where autonomy paves the way to innovation and development.