Managers can easily lose credibility with the team. I've seen it done, and in most cases it can be avoided.
One area that managers lose their team is in making decisions only because their peers do (or because of pressure from their peers). One example shows the issue. I know one manager who has set rules for the team not because they make sense or increase engagement or productivity, but because it is how other managers do things. Other managers don't allow flexible work hours, so she doesn't either.
The manager thinks this is an easy way to avoid a conflict or question from another manager. What it actually does is make the team think much less of her. The team sees a manager who won't do what is right for them, but what avoids issues. Do you think anybody on that team thinks the manager has their back?
Managers - make decisions that are best for your team, based on your situation. Provided it doesn't violate and firm organization rules or laws, do it. If others don't, let them deal with those consequences.