Over the last seven decades, the approach to management has shifted and changed many times. The dictatorial style synonymous with business after the end of World War II has slowly been eroded away and employees across the Western economy are managed in a more consultative manner.

It is widely accepted: good managers will empower individuals and get the most from them by simply providing clear guidance when required. However, the employee will be trusted to deliver against their own responsibilities by themselves as they see fit, opposed to the more “hands-on” approach adopted back in the 1950s and 1960s.

This change is most noticeable when we consider companies like Netflix. Their HR policy has been widely discussed and debated. Ultimately, Netflix believes in freedom and responsibility. They hire on the basis of the ‘desire’ to work for Netflix and as a consequence have some interesting approaches to management and leadership.

Throughout their policy, Netflix highlight how it’s the responsibility of the employee to be self-motivating; self-aware; self-disciplined; and self-improving. By providing what they consider to be a great working environment and a platform for people to succeed, they, in turn, expect their workforce to take responsibility for their own path and how they will be a positively contributing member of staff in both the short and long term. (Check out the entire policy at http://www.slideshare.net/reed2001/culture-1798664)

The responsibility element at Netflix is further evident as hours and vacation are not recorded. It’s entirely down to the individual.

Many other companies, including Amazon, have adopted a similar approach to their work culture and it is reaping massive rewards. Netflix believe productivity is up massively in comparison to more dictatorial management solutions.

At Red Executive, we try to adopt this sort of approach. Everyone understands their responsibilities and it is down to them, once they have been enabled to fulfil their position, to manage their own time.

However, this has proved tough for local talent to adapt in many instances. It seems, from talking to both local employees and employers, that there should be a clear definition of expectation in order to get a fully functioning employee. This is considered the best way to have a workforce that will hit their deliverables.

Yet, this approach simply limits what both the individual and the business can achieve. This is exactly what the consistent adherence to expectations or a strict job specification is doing. They are limiting our ability to achieve our potential.

When we are open and ‘follow our nose’ in our place of employment and develop as individuals, without constraint, our potential is achieved. On the other hand, when we work within a framework of guidelines and rules, we are restricted and our potential remains unachieved.

Therefore, as managers and leaders of business, how can we adjust?

It has been pretty clear in hierarchical environments over the last five decades, despite this movement towards a more liberal management approach in young, more digitally focused businesses, we should apply rules to our staff and by remaining on top of them we will achieve our goals.

Examples such as Netflix and Amazon have shown us we can gain 120 per cent productivity by letting people breathe and really fulfil their potential.

It has to start with your current staff. You have individuals who have done a great job for you – perhaps for many years – and it is time to release the chains and let them help you achieve goals with their own ideas and thoughts. In some instances, they will know more about areas of your business than you may. They have been doing the role for a long time and know it inside out, so encourage them to look beyond the daily routine and help them, help you, to make improvements to your business.

New staff hires should be easier, as they will know no different, but if you want to achieve these productivity levels, remember, the staff you hire are key. Their outlook and how they believe they ‘enjoy’ working will be a key parameter to the continued success of the business. Individuals who like structure and an incredibly ‘hands on’ manager will not be for you.

Netflix point out how some people ‘love’ their culture and excel, but other’s don’t and leave. The type of person you want to contribute to your culture is an incredibly important aspect.

This process of ‘cultural’ change needs to start at the top and be outlined to the team on a daily basis in meetings and company discussions. The positive aspects won’t only be in your output; it will also result in a nicer place to work and presumably your attrition rate will also decrease.

People need guidance, but like a good bottle of wine, they also need to breathe.

Martin Collins is the founder and managing director of Red Executive.