This style is very useful when the manager is experienced in the position and knows what is expected out of employees. Coaching allows a manager to motivate his or her employees by offering plenty of professional development opportunities.
The most important thing that the manager would focus on in this situation is building up the employee. The goal is to further enrich and educate an employee so that they are able to increase and improve their performance, which will boost the company and motivate others to do better.
The employees must be motivated and have the desire to improve their knowledge of work-related technology and tasks. This style of managing is great for developing companies!