Depending on personality, business owners tend to have one of four management styles: 

• Permissive
• Neglectful
• Authoritarian
• Authoritative

These styles are delineated by a balance between warmth and control,[i]

A permissive manager exudes warmth, but no control.  He allows his employees to do whatever they want to, thinking that he is simply being nice to them or treating them the way they want to be treated.  He wants to be their friend.  No limits are set, which means that the lower-level leaders can simply lead anywhere they want to.  Corporate goals are not communicated to the employees, allowing each employee to decide for himself what to do.  It is analogous to sending all of your employees on a trip with a roadmap of the state, but not telling them what the final destination is.  Each employee would be allowed to choose his own route, but it is unlikely they would all end up where you wanted them at the same time.  Employees under this management style have a great time, but very little gets accomplished.

A neglectful manager lacks both warmth and control.  There are no limits, and the manager doesn't even care what the employees are doing, as long as they are not disturbing his "important work of running the company."  He sends his employees out on a road trip, not only without a destination in mind, but also without a map, gasoline, or a working car.  Employees under this management style may not ever get out of the parking lot.  Frustrated with the lack of support, many employees will quit, causing the manager to be continually consumed with hiring and training new staff.

An authoritarian manager is big on control, but very low on warmth.  He is all about issuing orders and expecting them to be followed simply because he is the boss and he said so.  An authoritarian manager believes it's not important that employees know why the company is pursuing a particular goal, as long as they do what they are told.  After all, he's paying them, isn't he?  Employees who are sent on a road trip by an authoritarian manager are given a clearly marked route, but a junker of a car.  They are expected to just make it work, but not given any reason why they should even try.  The result is often willful independence, where employees follow the given route, but purposely hit every pot hole, causing the wheels to come off of the car.
 

An authoritative manager ranks highly on both control and warmth.  He encourages his employees to take responsibility for solving their own problems, but leaves the door open for them to seek his advice.  He sets parameters inside which the employees are free to operate in ways that make sense for the company as a whole.  His employees are given a road map with the destination clearly marked, but the route left open to allow for personal responsibility.  A nicely equipped car with a full tank is provided, and the employees are told when they are expected to reach the destination, then sent on their way with the manager secure in the knowledge they will use their abilities and skills to reach the destination in time to make a contribution.  They may even carpool to reduce the expenses of the trip.  As a result of both the guidance and freedom they are given, these employees react with mature responsibility to achieve the company's goals, often in ways that result in cost savings and efficiency.