Here is a quick response, and I could provide more details when I have a little more time and not in such a morning rush to get to work.
Traditional style of management is more comparable to the military style of management - very hierarchical, organized, disciplined, and sort of - "I am the boss, I tell you, you do. No questions asked". Strictly follows the direct chain of command. The ability of management is derived from the power of the position (not much of a management, if you ask me). Not much, if any, of soft skills required either. In today's world of management, it is used in the military (of every country out there) and countries like India, China, Japan and some European companies. However, it only works (I mean really works) in the military. Most of the western world (outside the military) has moved away from it due to the long-term downsides to the business in the areas of workforce morale etc.
Modern style of management largely depends on soft skills - consensus building, relationships, listening, and understanding, taking the team along with you willingly than dragging them along with you. The "manager" in this case may or may not have any actual power to adversely affect his/her followers, if they do not follow. The power of a manager is derived from the people who the manager manages (the managed) - and the managed give that power willingly to the manager. It is more comparable in modern day to a matrix organization and pure project management at its best. In my opinion, this is the best form of management in the long run, because it builds moral, participation, and sense of ownership among the managed.
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