The previous manager was very good at "leading through inspiration". He made people feel good about themselves, feel like they were learning, and feel like they were making a difference both for their corner of the world and the whole organization.

The new manager was good at keeping track of things and micromanaging. But the most inspiring line she could come up with was, "You still have a job." (I wish I was kidding.) She also had an unfortunate habit of lying badly and often, with a resulting destruction of trust. But that aspect I'm too bitter about at the moment to want to discuss.

To see why it matters, go watch https://www.youtube.com/watch?v=u6XAPnuFjJc. I believe that its message is not complete (for instance I've noticed that correlations between stress and mental performance is highly dependent upon the mental task you are doing), but what it says about motivation is spot on.

The key factors are Autonomy, Mastery and Purpose. Good leaders can give people the sense of all three while still getting them to do what the organization needs them to do. Micromanagement makes it clear what the organization wants, but destroys motivation.