Management styles Supervised by: Mr L. El Habbouch Presented by: Mechyakha Fatima Zahra F.Z.M 1 Introduction Management styles can vary from company to company, and of course within organizations themselves. Different styles are appropriate for different situations or types of business. Managers like Bill Gates and Warren Buffett have famously developed their own distinctive methods from which others can learn. However, the fact that the two examples are very different shows that there is no single route to success. 2 PLAN I- Definition II- The types of Management Style Autocratic Paternalistic Democratic Laissez-faire MBWA III-The Advantages And Disadvantages of M.G VI-the Japanese management style 3 I- Definition Management styles are characteristic ways of making decisions and relating to subordinates. This idea was further developed by Robert Tannenbaum and Warren H. Schmidt (1958, 1973), who argued that the style of leadership is dependent upon the prevailing circumstance; therefore leaders should exercise a range of management styles and should deploy them as appropriate. 4 II- The types of Management Style 1- Autocratic: An Autocratic style means that the manager makes decisions unilaterally, and without much regard for subordinates. As a result, decisions will reflect the opinions and personality of the manager; this in turn can project an image of a confident, well managed business. On the other hand, strong and competent subordinates may chafe because of limits on decision-making freedom, the organization will get limited initiatives from those "on the front lines", and turnover among the best subordinates will be higher. There are two types of autocratic leaders: the Directive Autocrat makes decisions unilaterally and closely supervises subordinates; the Permissive Autocrat makes decisions unilaterally, but gives subordinates latitude in carrying out their work 5 2- Paternalistic : A more Paternalistic form is also essentially dictatorial; however, decisions take into account the best interests of the employees as well as the business. Communication is again generally downward, but feedback to the management is encouraged to maintain morale. This style can be highly advantageous when it engenders loyalty from the employees, leading to a lower labor turnover, thanks to the emphasis on social needs. On the other hand for an autocratic management style the lack of worker motivation can be typical if no loyal connection is established between the manager and the people who are managed. It shares disadvantages with an autocratic style, such as employees becoming dependent on the leader. 6 3- Democratic : In a Democratic style, the manager allows the employees to take part in decision-making: therefore everything is agreed upon by the majority. The communication is extensive in both directions (from employees to leaders and vice-versa). This style can be particularly useful when complex decisions need to be made that require a range of specialist skills. From the overall business's point of view, job satisfaction and quality of work will improve, and participatory contributions from subordinates will be much higher. However, the decision-making process could be severely slowed down unless decision processes are streamlined. The need for consensus may avoid taking the 'best' decision for the business unless it is managed or limited. As with the autocratic leaders, democratic leaders are also two types i.e. permissive and directive. 7 4- Laissez-faire : In a Laissez-faire leadership style, the leader's role is as a mentor and stimulator, and staff manage their own areas of the business. Thus it is only successful with 1] inspirational leadership that understands the different areas of initiative being taken by subordinates, and 2] strong and creative subordinates who share the same vision throughout the organization. It is a style that is best for strong, entrepreneurial subordinates in an organization with dynamic growth in multiple directions. This style brings out the best in highly professional and creative groups of employees; however in cases where the leader does not have broad expertise and ability to communicate a strong vision, it can degenerate into disparate and conflicting activities. Lacking a strong maestro as leader, there is a risk in both focus and direction. 8 5- Management by Walking Around (MBWA): Management by Walking Around (MBWA) is a classic technique used by managers who are proactive listeners. Managers using this style gather as much information as possible so that a challenging situation doesn't turn into a bigger problem. Listening carefully to employees' suggestions and concerns will help evade potential crises. MBWA benefits managers by providing unfiltered, real-time information about processes and policies that is often left out of formal communication channels. By walking around, management gets an idea of the level of morale in the organization and can offer help if there is trouble. A potential concern of MBWA is that the manager will second-guess employees' decisions. The manager must maintain his or her role as coach and counselor, not director. By leaving decision-making responsibilities with the employees, managers can be assured of the fastest possible response time. 9 Paternalistic style Since management process is to plan, organize, lead and control, it is crucial to perform all these components within the process. In a complex business environment today, the work environment varies accordance to the situation and people behaviors. Each of the management style above has its unique features and if well understood, they can be your managing weapon to help you in your job function. These management styles when applied have different effect at different work environment. Therefore, it is imperative that you apply the most appropriate style or a combination of styles at the most appropriate time and situation to yield the maximum result. Never stick to only one management style. 10 III-The Advantages And Disadvantages of M.G Advantages management Description styles Disadvantages Autocratic Senior managers Quick decision making take all the Effective when employing important decisions many low skilled workers with no involvement from workers No two-way communication so can be de-motivating Creates “them and us” attitude between managers and workers Paternalistic Managers make decisions in best interests of workers after consultation More two-way communication so motivating Workers feel their social needs are being met Slows down decision making Still quite a dictatorial or autocratic style of management Democratic Workers allowed to make own decisions. Some businesses run on the basis of majority decisions Authority is delegated to Mistakes or errors can be workers which is made if workers are not motivating skilled or experienced enough Useful when complex decisions are required that need specialist skills 11 III- The Japanese management style It is said that after World War II, both employers and employees believed the aim of restoration of mass production in the Japanese economy was to organize people and skills effectively under democratic policy. A management system was established which reinforced a cooperative system between employers and employees. This system was created because individuals, corporations, and the country agreed to restore Japan itself as well as to improve the lifestyle of the Japanese people. Included in this management style were three characteristics: lifetime employment, a seniority system for salaries and promotions, and labor unions within the corporation. People, rather than things or money, are at the center of Japanese management. When the characteristics of Japanese management are described, this element cannot be ignored. Many opinions have been offered comparing Japanese management and Western, especially American, management. These comparisons have been discussed by such scholars as Abegglen and Stalk (1985), Drucker (1971), and Tsuda (1987). 12 13 Conclusion In conclusion, there is no one management style to suit all situations. It is only wise that you learn to use various types of management style to manage your own business. 14 15