37 Management Styles
Pooja Malhotra
1. Learning Outcome:
After completing this module the students will be able to:
• Understand the concept management style.
• Understand the different types of management styles with their merits and demerits.
2. Introduction
“The key to being an effective leader is to have a broad repertoire of styles and to use them appropriately”.-Rosalind Cardinal
Management plays a crucial role in the success or failure of an organization. Management is the process of employing different resources in an efficient and effective manner to achieve organizational goals. Managers perform various duties and roles in an organization and how they handle various situations will depend on their management style. Management style is the way of behaviour of a manager towards his subordinates in order to influence their behaviour towards the achievement of organisational goals. Management styles differ from individual to individual, from organisation to organisation and from industry to industry. Management styles are affected by the degree of delegation of powers, concern for human relations etc. Most top level hierarchies may use one specific management style; others may utilize different style of managing people in the organisation. The purpose of this chapter is to detail out the meaning of management style and different types of management styles adopted by managers for the achievement of the organisational objectives.
3. Meaning and Types of Management Styles
Management style means how managers behave with their subordinates so that they can influence their behaviour towards the attainment of certain objectives. A management style is very much influenced by the level of centralisation or decentralisation in the organisation as well as other factors like concern for the human relations etc. Following are the main styles of management:
1. Autocratic or authoritarian style
2. Participative or democratic style
3. Free-rein or laissez-faire style
3.1 Autocratic or Authoritarian Management Style
An autocratic manager makes all decisions himself and centralises the powers. The manager doesn’t consider the needs of subordinates. He expects the subordinates to do work without any question or changing of his orders. The subordinates are not given any opportunity to give their opinions in respect of any decision. The manager motivates the subordinates to do tasks through fear or threates of punishment etc. This style of management is mostly applied in military and police forces or in organisations where the assumptions of McGregor’s Theory X holds true. It can also be applied in situations where time for discussions or opinions is not available and work has to be done immediately. The characteristics of autocratic management style are:
a. This style creates formal relations between managers and his subordinates.
b. The manager centralises powers. he doesn’t delegate any powers.
c. all decisions are taken by manager himself
d. Negative motivation prevails in organisation in the form of threats or fears of punishment or penalties.
e. Assumes McGregor’s Theory X characteristics of employees
f. One way communication prevails in the organisation, from manager to subordinates.
g. A close supervision and control is exercised over the subordinates.
Advantages of an Autocratic Management Style
a. It results in quick decisions
b. employees are provided with structured work
c. manager can ensure satisfactory work as the work is done under his close supervision
d. It provides a source of motivation for managers.
e. This style is useful for less educated employees
Disadvantages to an Autocratic Management Style
1. This style demotivates the subordinates. It will lower their morale and hence productivity also.
2. There may be dissatisfaction amongst the subordinates. As a result, there will be more labour turnover and shifts in the job.
3. It can overburden the managers because of centralization of powers.
4. It badly affects the creativity of the employees.
There are different types of Autocratic management style which are described in the following paragraphs.
3.1.1 Paternalistic Management Style
It is an autocratic style but it also considers the subordinates needs. The manager listens to the needs, views, opinions and feedback of the subordinates. However, the ultimate decision making capacity lies with the manager. Such a manager motivates and helps the subordinates to work like the members of a family. Subordinates got motivated with this style of management.
3.1.2 Consultative Management Style
It is an autocratic management style but with feedback from employees is encouraged to maintain morale. Before taking final decisions, managers get feedback and opinions of the employees. this style motivates the employees and hence results in lowering the labour turnover.
3.1.3 Persuasive Management Style
In this style of management, the manager spends more time working with his subordinates and tries to convince them regarding the benefits of the decision. it is an autocratic style as the manager takes the ultimate decision.
3.2 Democratic or Participative Management Style
Democratic or participative management style is opposite to autocratic style. Here, the manager decentralizes the authority and powers. The manager takes the decision after consulting the subordinates. it includes two way communication between manager and the subordinates. The manager respects the suggestions and the feedback provided by the subordinates. The employees also feel as a part of the organization and are positively motivated towards the achievement of the enterprise goals. Following are the characteristics of the democratic or participative management style:
a. there is decentralization of authority
b. cooperative relations exist between the managers and the employees
c. there is no need of close supervision or control over the work of employees
d. two way communication
e. Employees are positively motivated.
f. Decisions are taken by the manager with the participation of the subordinates.
Advantages of Democratic or Participative Management Style
1. It results into high morale of the subordinates and hence increase in productivity
2. Harmonious relations amongst managers and subordinates. staff turnover is also reduced.
3. Full utilization of creativity and efficiency of the subordinates
4. Two way communication is possible.
Disadvantages of Democratic or Participative Management Style
1. It results into delay in decision making. There may be differences in opinions of the employees
2. It requires well educated and trained employees.
3. There may be dissatisfaction amongst managers with regard to loss of their powers.
3.3 Free-rein or Laissez-faire Management Style
In Free-rein or Laissez-faire management, the subordinates are given full freedom to do their work. They set their own goals and take decisions to achieve their goals. Hence, managers give full powers and authority to subordinates to frame their own plans, procedures and decisions. There is less intervention on the part of manager. He performs more like a mentor. The characteristics of Laissez-faire management style are as follows:
1. It provides independent decision making system for the subordinates.
2. It is based on principle of decentralization of authority.
3. It includes less supervision from managers
4. It develops a sense of responsibility amongst subordinates.
5. It includes two way communications.
Advantages of Laissez-faire Management Style:
1. It boosts morale of employees, hence increase in productivity.
2. It needs less supervision and control on the part of managers.
3. Easy to achieve self directed goals by the subordinates.
Disadvantages of Laissez-faire Management style:
1. As under this style, there is no close supervision and control by the managers, it becomes difficult for them to establish coordination amongst the subordinates.
2. The managers can feel loss of power hence dissatisfied.
3. This style is suitable only for educated and trained employees only.
4. Summary
Management is very important for the effective functioning of an organization. there are different styles of management which can be adopted by the managers for influencing the behavior of the subordinates towards the achievement of the organizational goals. Managers can adopt autocratic, democratic or Free-rein management styles. The factors which affect these styles are degree and level of decentralization and delegation of authority and powers to subordinates, sense of human relations and their needs, knowledge and education of subordinates, motivation, type of communication flow, etc. different style work in different situations. Managers can also adopt a mix of these styles according to situations. In present scenario, democratic styles along with various variants are more successful.
References:
- Koontz, H., (2010) Principles of Management, Tata McGraw Hill Education. 2. Benfari, R. C., (1999)
- Understanding and Changing Your Management Style, Wiley.
- https://en.wikipedia.org/wiki/Management_styles
- https://www.rpi.edu/dept/advising/free…/management_styles.htm