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Your question reminded me with Google and its policy alloowing emplpyees to design, furnish,, decorate their office (work space) as they like so that they feel at home.
Employees can take showers, play gym, eat and drink freely during work hours !!
Could this revolutionary work style be better than classical one ??OK ... let me throw couple ideas here
The right way to manage the subordinates would vary from case to case, including the type of work being done, its criticality, tolerance to errors or delays, the type and character of your subordinates, their personality, attitude, personality, experience, maturity, discipline and attitude !!