Different Management Styles Autocratic An autocratic management style occurs when managers tell people what to do and expect their orders to be followed. There is little or no consultation between management and workers. Decision making is tightly controlled. Advantages The decisions that are made are often quick and decisive Decisions made by trained/qualified managers Disadvantages Staff are not consulted and so feel disempowered May result in low morale and motivation Democratic A democratic management style means that managers consult others before making decisions. This could involve a senior manager discussing an issue with junior managers. It could also involved managers asking other workers for their opinions before reaching decisions. Advantages Decisions are made in consultation with staff thus staff fell involved and are more likely to implement decisions Disadvantages Consultations may take time so decisions may not be made quickly enough Laissez-faire A laissez-faire style involves the minimum of managerial direction. It probably works best in workplaces where creativity would be restricted by strict managerial control eg web design. This does not mean that workers do as they please all the time! Advantages Relaxed working environment works well for certain industries, especially creative ones Disadvantages The organisation can sometimes lack direction Employees may not have training/qualifications to make decisions of particular levels Impact of management styles on motivation Autocratic style Workers in some businesses run in an autocratic style may feel frustrated and unable to use their initiative. This is likely to lead to low morale and little motivation. In some organisations this type of leadership is vital, eg the Armed Forces. In moments of stress they are expected to follow their leader without question. They are trained to respond positively to this management style, and clear leadership in this case is likely to increase motivation and morale. Democratic style This should make workers feel part of the decision making process. Workers will feel valued as their ideas are acknowledged and viewed as important. Z:\new\Working Parties\Parent Communication\study_support 4\faculties\social_studies\business_education\business_management\sg\course_notes\new notes (SG BM)\Unit 4\unit 4.4.doc 2 However, if managers approach employees as they have no ideas of their own this will lead to a lack of respect and a perception of poor leadership. In turn, this will have a negative effect on morale and motivation. Laissez-faire This management style is quite relaxed which will not work in all industries. Most workers need clear leadership and guidance. In creative industries eg film making, design, this style should work well, thus increasing morale. Credit Level Credit Level Notes Effective Management Qualities of effective leadership Effective leaders and managers have the following skills and qualities: Good interpersonal skills, thus they can lead, organise, motivate and work with their staff Good information skills, enabling them to communicate clearly and collect, process and analyse information Goode decision-making skills, enabling them to use information to make different kinds of decisions Roles of a manager Leading Leadership is an important part of management. Leading by example, ie giving clear instructions, persuading and directing people. It is important to gain respect from staff. Managers should have a sound knowledge and understanding of the business and its practices. Planning Planning involves looking ahead and deciding what the future goals of the organisation are. Plans should be made to achieve these goals. Budgeting Budgeting is a form of financial planning. Managers must be able to forecast the financial needs of the organisation and show how these needs will be met A budget is a forecast of future income and expenditure, if expenses are higher than income a business should aim to cut costs, increase selling price or obtain a short-term source of finance. If income is predicted to be much higher than costs managers may plan to improve premises, reward workers or expand the business. Controlling Managers should have a thorough knowledge of what is happening in their organisation. They should initiate control over the way the business carries out activities to ensure aims are being achieved. Monitoring evaluating & Managers should monitor the activity of the business and the performance of staff in order to compare them with targets and forecasts, indicating whether plans are being met. This will enable managers to see if areas of the business are under or over performing, thus being able to address any problems. Failure to monitor will mean that managers will not identify small problems early on and thus will be unable to prevent them becoming big problems. Z:\new\Working Parties\Parent Communication\study_support 4\faculties\social_studies\business_education\business_management\sg\course_notes\new notes (SG BM)\Unit 4\unit 4.4.doc 3 Activities 1 2 Credit Level 3 Read each of the following scenarios and decide what type of management style is being adopted, management styles can be used more than once: a) Senior Manager to Middle Manager “I am telling you, we will change suppliers tomorrow! “ b) Senior Manager to the Department Managers at team meeting “Do you think changing suppliers is the correct answer to cut our costs?” c) Sales Manager to all Sales staff “all decisions must be left to me, I know best” d) Managing Director to all lower level managers “I want everyone to produce what their feelings tell them is right” a) State one way in which a democratic management style can help motivate staff b) How might an autocratic management style demotivate staff? c) In which 2 of these businesses do you think a laissez-faire management style would work well: advertising; car manufacturing; dress design; supermarket. Give a reason for your answer. Effective management involves planning, budgeting, controlling and monitoring & evaluating. Use each of these terms as heading and write a paragraph on each of these management roles, showing what each involves Z:\new\Working Parties\Parent Communication\study_support 4\faculties\social_studies\business_education\business_management\sg\course_notes\new notes (SG BM)\Unit 4\unit 4.4.doc 4