The Democratic Management Style in The Workplace

What is the democratic management style?

The democratic management style, or shared leadership, is when employees and managers participate in the decision-making process together. The manager still has the final say over the outcome, but employees are encouraged to share their own ideas. The manager decides who can participate in these discussions and contribute to the decision being made.¹

Pros of the democratic management style

Companies benefit from higher employee morale

Using democratic management styles often increases employee morale, as they feel more comfortable pitching in with their ideas and thoughts during discussions.¹
Being included in the decision-making process makes employees feel more valued by their managers and, therefore, they are more likely to stay loyal to their company. This can boost your company’s profit by increasing employee retention.²
For example, a manager decides which NESCAFÉ® Instant Coffee solution they should purchase for the office. They discuss with their employees and the majority vote for the large coffee tins. The manager, therefore, buys this solution, and employees are happier knowing their preferences are valued.

Companies achieve higher productivity rates

Democratic management styles foster a more creative atmosphere, as employees know their managers will listen and consider their ideas. This leadership style can work particularly well in companies and businesses that require a steady flow of creative ideas and collaboration.³
Happier employees are likelier to be more productive, committing to project deadlines and even overtime to help their company succeed.² Employees are more likely to care more about the outcome when involved in decision-making.¹

Teams can bond better with each other

When employees are involved in decision-making, it “can help reinforce the company’s vision”². Employees feel more connected to the company’s goals when they play an active role in making them happen. When everyone works together towards that common goal, it “promotes great cohesion” in the workplace.²
These discussions can happen during relaxed coffee breaks, where employees and managers can bounce ideas off each other and bond socially at the same time.
In the What Workers Want 2023 Survey, one of the top reasons employees stay at a company is because of “good colleagues”, making team bonding vital for employee retention.⁴

Cons of the democratic management style

Decision-making happens slower

A McKinsey study revealed that managers spend almost 40% of their time making decisions, with many believing this is excessive.⁵
A democratic manager will likely spend extra time making decisions and listening to other employees' opinions before reaching a consensus. This can be especially challenging in businesses with tight deadlines where decision-making needs to be done at a more rapid pace.
Managers should be careful about who they involve in these meetings, as not all team members have the necessary expertise to make a worthy contribution.⁶ Therefore, it’s important to understand when to involve different members of the team at different stages of a project and when to reserve the decision-making, in more urgent situations, to senior management.

Managers can start to feel overwhelmed

In democratic discussions, managers can start feeling overwhelmed by their employees’ conflicting opinions, using up more of everyone’s time and effort to reach a productive conclusion.²
Democratic management styles also put more pressure on managers to value each employee’s idea equally when, in reality, only a select few may be implemented. Therefore, managers may spend extra time explaining why they didn’t select some employees’ ideas.³

Discussions could end in uncertainty

A situation may arise where the manager cannot make a concrete decision due to a split consensus at the end of a discussion, which could also delay more time-sensitive projects or business decisions.
Therefore, in these circumstances, a more authoritative approach may be required, and ultimately, the manager must decide independently instead.³

Democratic management styles are ideal for creative environments where employees can collaborate freely and create stronger bonds. However, managers should avoid this style when making urgent or time-sensitive decisions.

See our guide on the different management styles next and find out when it’s best to use an paternalistic management style vs a participative management style.

Learn more about the democratic management style and check our article on the paternalistic management style.

The Democratic Management Style in The Workplace

What is the democratic management style?

Pros of the democratic management style

Companies benefit from higher employee morale