6 Golden Rules of Effective Management: What Makes a Good Manager?

According to the Australian Banking Association, many small businesses fail due to poor leadership and management. The importance of a good manager can’t be understated; it’s critical for the success of any company. By definition, effective management is a person’s ability to lead with clarity, adaptability, and integrity, thus creating an environment where subordinates feel valued, motivated, and supported. It involves setting a strong example, fostering open communication, recognizing contributions, and driving both individual and organizational success.

A 2024 survey consisting of over 1,000 human resource managers and 10,000 employees found that more than 80% of respondents were more motivated and productive at work when they had a good manager who cared.

Unfortunately, within the same survey, more than 60% felt like their managers were not appreciative or recognized their work efforts. Similarly, more than 35% of respondents felt like their relationships with their leaders weren’t t respectful and made them feel burnt out.

There’s a clear need in all sectors for better, effective management. Whether you’re a marketing manager or an HR professional with a Graduate Certificate in Human Resource Management, there are six golden rules you can follow to improve your management style.

In this guide, we’ve outlined those golden rules, as well as other strategies you can implement in your professional life to lead effectively. Our tips will help you better navigate your team towards success and climb the career ladder.

Why is a Good Manager Important?

“A leader is one who knows the way, goes the way, and shows the way.” — John C. Maxwell

For almost every organization, the employee experience begins and ends with their managers. The management style, how effective the manager is, and their interpersonal and project skills can make or break an employee’s experience and affect their performance and well-being.

Research has shown that managers, more than any other factor, have a significant effect on their team’s performance and engagement. Statistics show that 70% of the variance in team engagement is determined solely by a manager.

A report from Gallup, studying more than one million managers across 100,00 organizations, found that managers and employees who apply their strengths to their work every day result in:

• Being six times as likely to be engaged in their work
• Being three times as likely to report an excellent quality of life

With many sectors reporting employee shortfalls, like the healthcare industry, effective management is more important than ever. For example, it’s reported that 4 in 5 health professional occupations (e.g., doctors and nurses) were in short supply in 2023.

These workforce shortages and high turnover rates can be attributed to various factors that could be remedied with effective management and leadership, especially in times of crisis. These factors include:

• Insufficient pay/compensation
• Poor work-life balance (e.g., regular overtime)
• Lack of personal development opportunities
• Negative workplace culture
• Burnout (e.g., from unmanageable workloads)
• Lack of support for wellbeing
• Feeling unappreciated

Six Golden Rules of Management

Whether you’re looking for strategies to better lead your team or further your career with personal development, it all starts with the golden rules of management. These rules can help any manager improve, regardless of level or sector.

While there are no universally agreed-upon golden rules, below is a list of the most commonly recommended by experts in the field. How you implement them in your professional life may vary depending on the industry.

#1. Set a good example

Like any leadership role, a manager sets an example for the rest of their team through their behaviour. For example, if you’re a manager who is always punctual and turns up on time, it’s more than likely that your team will be too.

Similarly, it’s only fair for a manager to request the same amount of effort and commitment they put into a job from their employees. A manager who can’t meet their own expectations can’t expect their employees to.

#2. Be dependable

Along with setting a good example as a leader, a manager needs to be someone their team can rely on during a crisis. A manager can be dependable through being consistent, planning clear and actionable goals and supporting their team.

#3. Recognize and reward hard work

The aforementioned 2024 survey reports that more than 35% of workers interviewed felt burnt out due to the lack of recognition from their superiors. This hurts not only the employee, but also their relationship with their manager and the overall organisation.

When an employee is facing workplace burnout, this reduces their productivity, lowers job satisfaction, and increases the chance of them leaving. If you want to prevent this in your workplace, you need to proactively recognize and reward your team’s efforts.

There are many ways a manager can reward their employees. These include:

• Providing regular, positive feedback about their work
• Publicly acknowledging the work done by their employee(s)
• Celebrating successes with team gatherings, such as lunches or activities
• Implementing bonuses for when an employee (or team) meets specific goals

As a manager, it’s also important to be considerate. Some employees may not like their contributions to be publicly acknowledged (e.g., due to anxiety). It’s essential to understand individual preferences and ask your team how they want to be recognised and appreciated.

#4. Transparency is key

There is one trait of effective management, regardless of the industry, from healthcare to hospitality—transparency. If you want to foster a positive work environment and strong professional relationships with your team, you need to be open and honest. 

Not only is transparency important for being honest, but it’s also a great way to showcase your integrity as a leader. Similarly, encouraging open communication at all levels—including managers and team members—can help foster transparency and trust.

#5. Avoid ‘one-size-fits-all’ approaches

Regardless of the industry or department you’re working in, one thing to always avoid is a ‘one-size-fits-all’ management strategy. Even if it isn’t intentional, it’s a quick way to misunderstand your team’s needs and strengths. 

Every person in your team is an individual with their own strengths, preferences, ideas and weaknesses. As a manager, you will need to adapt your approach to accommodate all of your team members, adjusting your strategies as you go. 

#6. Foster a positive work environment

Studies show that a toxic work environment can have a significant, detrimental impact on employees and work outcomes. It’s also one of the leading contributors to workplace burnout and resignations.

Fortunately, this is an issue that can be remedied at a managerial level. Managers (e.g., middle-level managers) have the power to advocate on behalf of their team members to higher-ups. 

Managers can also help contribute to a positive work environment through better workplace policies and how they treat their team members. This will make their workers feel more valued, and in turn, result in increased motivation and productivity.

Taking steps to foster a positive work environment will also make achieving the other golden rules easier. For example, it sets the foundation for transparency and open communication. People can only build healthy relationships in an environment where they feel safe and stable.