Management education is aimed at developing students into managers who can think ahead, exercise good judgment, make ethical decisions, and consider the implications of their proposed actions.
2. Key Learning Objectives of Module
Management education is aimed at developing students into managers
who can think ahead, exercise good judgment, make ethical decisions,
and consider the implications of their proposed actions.
Know why you should care about leadership, entrepreneurship, and
strategy.
Know the dimensions of the planning-organizing-leading-controlling
(P-O-L-C) framework.
Understand what performance means at the individual and group
levels.
Create your own guide to learning and developing principles of
management.
3. Background
The fundamental notion of principles of management was
developed by French management theorist Henri Fayol (1841–
1925). He is credited with the original planning-organizing-
leading-controlling framework (P-O-L-C), which, while
undergoing very important changes in content, remains the
dominant management framework in the world. See H. Fayol,
General and Industrial Management (Paris: Institute of
Electrical and Electronics Engineering, 1916).
He later augmented the original 4 to 14 principles which are
beneficial for prediction, planning, decision-making,
organization and process management, control and
coordination in managing an organization
4. What is Management?
A universal phenomenon. It is a very popular and widely used term.
All organizations - business, political, cultural or social are involved
in management because that is what helps and directs the various
efforts towards a definite purpose.
Harold Koontz says that, “Management is an art of getting things
done through and with the people in formally organized groups. It is
an art of creating an environment in which people can perform and
co-operate towards attaining group goals”.
F.W. Taylor also says that “Management is an art of knowing what
to do, when to do and see that it is done in the best and cheapest
way”.
5. Management is a purposive activity.
It is something that directs group efforts towards the attainment of
certain pre - determined goals.
It is the process of working with and through others to effectively
achieve the goals of the organization, by efficiently using limited
resources in the changing world.
These goals may vary from one enterprise to another. For example
one enterprise it may be launching of new products by conducting
market surveys, and for another it may be profit maximization by
minimizing cost.
6. Management involves creating an internal environment and it puts
into use the various factors of production.
It is therefore the responsibility of management to create such
conditions which are conducive to maximum efforts so that people are
able to perform their task efficiently and effectively.
It includes ensuring availability of raw materials, determination of
wages and salaries, formulation of rules & regulations etc.
Good management therefore includes both being effective and
efficient. Being effective means doing the appropriate task i.e, fitting
the square pegs in square holes and round pegs in round holes. Being
efficient means doing the task correctly, at least possible cost with
minimum wastage of resources.
7. Categories of Management
Management can be defined in detail in following categories
Management as a Process
Management as an Activity
Management as a Discipline
Management as a Group
Management as a Science
Management as an Art
Management as a Profession
8. Management as a Process
As a process, management refers to a series of inter-related
functions. It is the process by which management creates,
operates and directs purposive organization through systematic,
coordinated and co-operated human efforts.
According to George R. Terry, “Management is a distinct process
consisting of planning, organizing, actuating and controlling,
performed to determine and accomplish stated objective by the use
of human beings and other resources”. As a process, management
consists of three aspects:
9. 3 aspects of Management Process
Management is a social process - Since human factor is most important
among the other factors, management is concerned with developing
relationship among people. It is the duty of management to ensure
interaction between people - productive and useful for obtaining
organizational goals.
Management is an integrating process - Management undertakes the job
of bringing together human physical and financial resources so as to achieve
organizational purpose. It is therefore an important function that brings
harmony between various factors.
Management is a continuous process - It is a never ending process. It is
concerned with constantly identifying the problem and solving them by
taking adequate steps. It is an on-going process.
10. Management as an Activity
Like various other activities performed by human beings such as
writing, reading, playing, eating, learning etc, management is also an
activity because a manager is one who accomplishes the objectives by
directing the efforts of others.
According to Koontz, “Management is what a manager does”.
11. 3 Aspects of Management as an Activity
Informational activities - In the functioning of business enterprise, the
manager constantly has to receive and give information orally or in
written. A communication link has to be maintained with subordinates
as well as superiors for effective functioning of an enterprise.
Decisional activities - Practically managers are continuously involved
in decisions of different kinds since the decision made by one manager
becomes the basis of action to be taken by other managers. (E.g. Sales
Manager is deciding the media & content of advertising).
Inter-personal activities - Management involves achieving goals
through people. Therefore, managers have to interact with superiors as
well as the sub-ordinates. They must maintain good relations with them.
The inter-personal activities include with the sub-ordinates and taking
care of the problem. (E.g. Bonuses to be given to the sub-ordinates).
12. Management as a Discipline
Management as a discipline refers to that branch of knowledge which is
connected to study of principles & practices of basic administration.
Management as a discipline specifies certain code of conduct for
managers & indicates various methods of managing resources of an
enterprise efficiently.
Management is a course of study which is now formally being taught in
institutes and universities. After completing a prescribed course and
obtaining a degree or diploma in management, a person can get
employment as a manager.
13. In Management as a discipline:
There are scholars & thinkers who communicate relevant
knowledge through research and publications.
The knowledge is formally imparted by education and training
programmes.
Management as a discipline is comparatively a new discipline but
it is growing at a faster pace.
14. Management as a Group
Management as a group refers to all those people who perform the
task of managing an enterprise. When we say that management of
ABC & Co. is good, we are referring to a group of people who are
managing.
Thus, technically speaking, management will include all managers
from the Chief executive to the first - line managers (lower-level
managers). But in common practice management includes only top
management i.e. Chief Executive, Chairman, General Manager,
Board of Directors etc.
These persons have the authority to use resources to accomplish
organizational objectives & also responsible for their efficient
utilization.
15. Management as a group may be looked upon in 2 different ways
1. All managers taken together.
2. Only the top management
The interpretation depends upon the context in which these terms are
used. Broadly speaking, there are 3 types of managers -
1. Patrimonial/Family Manager: Those who have become managers
by virtue of their being owners or relatives of the owners of company.
2. Professional Managers: Those who have been appointed on account
of their specialized knowledge and degree.
3. Political Managers/Civil Servants: Those who manage public
sector undertakings.
Managers have become a part of elite group of society as they enjoy
higher standard of living in the society.
16. Management as a Science
Science is a systematic body of knowledge pertaining to a specific field
of study that contains general facts which explains a phenomenon. It
establishes cause and effect relationship between two or more variables
and underlines the principles governing their relationship. These
principles are developed through scientific method of observation and
verification through testing.
Science is characterized by following main features:
Universally acceptance principles - Scientific principles represents
basic truth about a particular field of enquiry. These principles may be
applied in all situations, at all time & at all places. E.g. - law of
gravitation which can be applied in all countries irrespective of the time.
Experimentation & Observation - Scientific principles are derived
through scientific investigation & researching i.e. they are based on logic.
E.g. the principle that earth goes round the sun has been scientifically
proven.
17. Cause & Effect Relationship - Principles of science lay down cause
and effect relationship between various variables. E.g. when metals are
heated, they are expanded. The cause is heating & result is expansion.
Test of Validity & Predictability - Validity of scientific principles can
be tested at any time or any number of times i.e. they stand the test of
time. Each time these tests will give same result. Moreover future
events can be predicted with reasonable accuracy by using scientific
principles. E.g. H2 & O2 will always give H2O.
Management also contains some fundamental principles which can be
applied universally like the Principle of Unity of Command i.e. one
man, one boss. This principle is applicable to all types of business or
non business. Management principles are also based on scientific
enquiry & observation. They have been developed through experiments
& practical experiences of large no. of managers. E.g. it is observed
that fair remuneration to personnel helps in creating a satisfied work
force.
18. The same is true for management, therefore it also establishes cause and
effect relationship. E.g. if workers are given bonuses, fair wages they will
work hard but when not treated in fair and just manner, reduces productivity
of organization.
Principles of management can also be tested for validity. E.g. principle of
unity of command can be tested by comparing two persons - one having
single boss and one having 2 bosses. The performance of 1st person will be
better than 2nd.
Management has a systematic body of knowledge but it is not as exact as that
of other physical sciences like biology, physics, and chemistry etc. The main
reason for the inexactness of science of management is that it deals with
human beings and it is very difficult to predict their behaviour accurately.
Since it is a social process, it falls in the area of social sciences. It is a flexible
science whose theories and principles may produce different results at
different times and therefore it is a behaviou science.
Ernest Dale has called it as a Soft Science.
19. Management as an Art
An art may be defined as personalized application of general theoretical
principles for achieving best possible results. Art has the following
characters -
Practical Knowledge: Art requires practical knowledge therefore
learning of theory is not sufficient. It is very important to know practical
application of theoretical principles. E.g. to become a good painter, the
person may not only know different colours and brushes but different
designs, dimensions, situations etc to use them appropriately.
A manager can never be successful just by obtaining degree or diploma in
management; he must have also know how to apply various principles in
real situations by functioning in capacity of manager.
20. Personal Skill: Every artist has his own style and approach towards
his job. The level of success and quality of performance differs from
one person to another. Similarly management as an art is also
personalized.
Every manager has his own way of managing things based on his
knowledge, experience and personality. For this reason some managers
are known as good managers whereas others as bad.
Creativity: Every artist has an element of creativity. That is why he
aims at producing something that has never existed before which
requires combination of intelligence & imagination.
Management is also creative in nature like any other art. It combines
human and non-human resources in useful ways to achieve desired
results.
21. Perfection through practice: Every artist becomes more and more
proficient through constant practice. Similarly managers learn through
an art of trial and error initially but application of management
principles over the years makes them perfect on the job.
Goal-Oriented: Every art is result oriented as it seeks to achieve
concrete results. In the same manner, management is also directed
towards accomplishment of goals. Managers use various resources like
men, money, material, machinery & methods to promote growth of an
organization.
management is therefore an art which requires application of certain
principles because it deals with moulding the attitude and behaviour of
people at work towards desired goals.
22. Management as a Profession
Over a large few decades, factors such as growing size of business unit,
separation of ownership from management, growing competition etc
have led to an increased demand for professionally qualified managers.
The task of manager has been quite specialized and now management
has reached a stage where everything is to be managed professionally.
A profession may be defined as an occupation that requires specialized
knowledge and intensive academic preparations to which entry is
regulated by a representative body.
23. The essentials of a profession
Specialized Knowledge - A profession must have a systematic body of
knowledge that can be used to develop professionals. Every professional
makes deliberate efforts to acquire expertise in the principles and
techniques.
Formal Education & Training - Institutes and universities impart
education & training for a profession. No one can practice a profession
without going through a prescribed course.
Social Obligations - Professionals are primarily motivated by the desire
to serve the society. Their actions are influenced by social norms and
values.
Code of Conduct - Members of a profession have to abide by a code of
conduct which contains certain rules and regulations, norms of honesty,
integrity and special ethics to ensure self discipline among its members
Representative Association - For the regulation of profession, there
must be a representative association.
24. Importance of Management Principles
1. Improves Understanding - Helps managers get indication on how to
manage an organization. The principles enable managers to decide what
should be done to accomplish given tasks and to handle situations which may
arise in management. These principles make managers more efficient.
2. Direction for Training of Managers - Provides understanding of which
process managers must follow to accomplish goals. Helpful in identifying the
areas of management in which managers should be trained.
3. Role of Management - Makes the role of managers concrete. Principles act
as ready reference to the managers to check whether their decisions are
appropriate. They also define managerial activities in practical terms. They
tell what a manager is expected to do in specific situation.
4. Guide to Research in Management - Indicate lines along which research
should be undertaken to make management practical and more effective.
Guide managers in decision making and action. The researchers can examine
whether the guidelines are useful or not.
25. Henri Fayol 14 Principles of Management
These 14 principles of management are used to manage an organization
and are beneficial for prediction, planning, decision-making,
organization and process management, control and coordination
Henry Fayol, also known as the ‘father of modern management theory’
gave a new perception of the concept of management. He introduced a
general theory that can be applied to all levels of management and
every department.
The Fayol theory is practised by managers to organize and regulate the
internal activities of an organization. He concentrated on accomplishing
managerial efficiency
26. 1. Division of Work- Segregating work in the workforce amongst the workers
will enhance the quality of the product. Further, the division of work improves
the productivity, efficiency, accuracy and speed of the workers. This principle
is appropriate for both the managerial as well as a technical work level.
2. Authority and Responsibility- These are the two key aspects of
management. Authority facilitates the management to work efficiently, and
responsibility makes them responsible for the work done under their guidance
or leadership.
3. Discipline- Without discipline, nothing can be accomplished. It is the core
value for any project or any management. Good performance and sensible
interrelation make the management job easy and comprehensive. Employees
good behaviour also helps them smoothly build and progress in their
professional careers.
27. 4. Unity of Command- This means an employee should have only one boss
and follow his command. If an employee has to follow more than one boss, a
conflict of interest may arise and create confusion.
5. Unity of Direction- Whoever is engaged in the same activity should have a
unified goal. This means all the person working in a company should have
one goal and motive which will make the work easier and achieve the set goal
easily.
6. Subordination of Individual Interest- This indicates a company should
work unitedly towards the interest of a company rather than personal interest.
Be subordinate to the purposes of an organization. This refers to the whole
chain of command in a company.
7. Remuneration- This plays an important role in motivating the workers of
a company. Remuneration can be monetary or non-monetary. However, it
should be according to an individual’s efforts they have made
28. 8. Centralization- The management or any authority responsible for
the decision-making process should be neutral. However, this depends
on the size of an organization. Henri Fayol stressed on the point that
there should be a balance between the hierarchy and division of power.
9. Scalar Chain- Fayol highlights that the hierarchy steps should be
from the top to the lowest. This is necessary so that every employee
knows their immediate senior whom they should contact when the need
arises.
10. Order- A company should maintain a well-defined work order to
have a favourable work culture. The positive atmosphere in the
workplace will boost more positive productivity.
11. Equity- All employees should be treated equally and respectfully.
It’s the responsibility of a manager that no employees face
discrimination.
29. 12. Stability- An employee delivers the best if they feel secure in
their job. It is the duty of the management to offer job security to
their employees.
13. Initiative- The management should support and encourage the
employees to take initiatives in an organization. It will help them to
increase their interest and make their worth.
14. Esprit de Corps- It is the responsibility of the management to
motivate their employees and be supportive of each other regularly.
Developing trust and mutual understanding will lead to a positive
outcome and work environment.
30. The ISO 7 Quality Management Principles
ISO 9001, which is the internationally recognised Quality Management
System standard, defines Quality Management Principles as “a set of
fundamental beliefs, norms, rules and values that are accepted as true
and can be used as a basis for quality management”.
These seven quality management principles form the basis of ISO quality
management standards. While each organisation is different in terms of
its industry and unique business challenges, understanding these
principles will help to effectively implement quality standards.
1. Customer focus. 5. Improvement.
2. Leadership. 6. Evidence-based decision making
3. Engagement of people. 7. Relationship management.
4. Process approach.
31. These principles were developed over a period of 35 years and are not arranged
in order of importance – they are considered equally important to running a
good quality management system. They are applicable to both product- and
service-based organisations.
QMP 1: Customer focus – A company must focus on meeting customer
requirements and strive to exceed their expectations when providing them
products and services. A company can achieve success when it attracts and
retains the confidence of its customers by providing value for them. For the
company to place its focus firmly on the customer, it can link its objectives to
the needs and expectations of its customers and measure customer satisfaction.
The benefits of focusing on the customer include:
An increase in customer satisfaction.
An influx in repeat business.
An increase in revenue.
A larger customer base.
32. QMP 2: Leadership - The second quality management principle focuses on
leadership and the direction of the company. The business must have clear
objectives in place to ensure the active involvement of its employees in
achieving those targets. For a better chance of success, top level management
must be actively involved in the company’s quality management system.
Additionally, the company’s mission, vision, strategy and policies must be
clearly communicated, and a culture of trust and integrity must be established
within the business. Furthermore, everyone within the company must be
committed to quality.
The benefits of creating a quality culture include:
A higher level of communication between levels and functions of the
business.
An improvement in the organisation and its employees’ capabilities to deliver
good results.
A higher level of employee engagement and motivation.
33. QMP 3 Engagement of people - This principle evaluates employee
performance and enables learning, brainstorming and knowledge sharing.
Competent, engaged and empowered people at all levels of an organisation
are required in order to create and deliver value to its customers. To
effectively and efficiently run a business, a sense of mutual respect must be
established between management and employees. To achieve this level of
engagement, the company must promote collaboration between employees
and management, encourage employees to take initiative, and conduct
regular surveys to assess worker satisfaction.
The benefits of engaging people include:
A company-wide understanding of its quality objectives and an increased
motivation to achieve goals.
A higher level of involvement of workers in improvement activities.
An increase in employee creativity, initiative and satisfaction.
34. QMP 4: The process approach deals with efficiency and effectiveness
of interrelated processes. Great processes improve consistency, promote
continuous improvement, and reduce costs. Working to control and
improve individual processes can be easier and more effective than
managing the entire system at once. By understanding how the system
produces results, the company can improve its performance. To achieve
success, authority, responsibility and accountability for managing
processes must be established.
The benefits of the process approach include:
An increased focus on key processes and opportunities for improvement.
Consistent and predictable outcomes.
Enhanced business performance through the effective management of
processes, efficient use of resources, and reduced cross-functional
barriers.
35. QMP 5: Improvement - For a company to remain successful and
maintain its current levels of performance, its focus must be on
ongoing improvement. In a competitive and ever-changing market,
businesses without the goal of continuous improvement will be
overtaken by its competition. To reach its goal, the company must
ensure the competence of its employees to successfully promote and
complete improvement projects. To ensure employee satisfaction,
improvement must be recognised and acknowledged.
The benefits of ongoing improvement include:
An improvement in process performance and organizational
capabilities.
An increase in customer satisfaction.
The ability to predict, prevent and react to internal and external risks.
36. QMP 6 Evidence-based decision making – companies will be
better able to meet their business objectives by basing decisions on
facts and data analysis. In a competitive market, businesses must
avoid making important decisions on a whim. Decision-making
often involves multiple types and sources of information. To enable
fact-based decision making, data must be accurate, reliable, secure,
and available to all parties. Data must be analysed using suitable
methods by competent evaluators.
The benefits of fact-based decision-making include:
An improvement in the decision-making process.
Improved operational effectiveness and efficiency.
The ability to demonstrate the effectiveness of previous business
decisions.
37. QMP 7 Relationship management - companies must uphold good
relationships with interested parties to ensure its ongoing success.
Retaining these relationships influence business performance. To
ensure effective relationship management, identify who the interested
parties are i.e. suppliers, customers, partners, investors etc. and
determine how important their relationship with the organisation is.
The benefits of relationship management include:
A mutual understanding of the goals among interested parties.
A well-managed supply chain that generates a stable flow of products
and services.
An increased ability to create value for interested parties.
38. What makes a good manager?
Good managers implement management strategies that benefit the
entire business, including executives, employees and customers. Good
management involves individualizing every employee to maximize
their potential and best utilize their unique skills.
Good managers can improve employee satisfaction and development
by getting to know the employees personally, consequently promoting
greater success and productivity with the rest of the company. They
provide employees with the support and resources not only to perform
well but to exceed expectations.
Good managers know how to adjust a particular employee’s workload
to help them perform at their highest potential whilst still meeting their
required objectives without negatively affecting the rest of the team.
The ability to benefit a company by connecting with individual
employees is the fundamental sign of good management.
39. There are several practices and methods that effective managers
utilize. Below are some details about how to be a good manager for
both the employees and the business.
Be aware of strengths and weaknesses - Most managers discover
strengths and weaknesses through conversation and observation.
Talking to individual employees about their skills and their goals often
helps managers understand the areas in which they excel. Similarly,
observing a team while its members work on a project can reveal to
management which employees struggle with collaboration or
following instructions. Once a manager is aware of each employee’s
strengths and weaknesses, he can distribute tasks, assign
responsibilities, and form teams to promote productivity and eliminate
conflict, boredom, or demoralization.
40. Tailor to individual learning styles - Managers are responsible for providing
orientation, guidance and ongoing training to employees during their career at
the business. However, this training should be individualized according to
each employee rather than following a generic development plan.
Good managers are able to adjust one’s teaching style to suit how each
employee learns. Some employees learn best through spoken instruction or
written directions. Others learn skills through practice and need time to
perform well.
Listen to and connect with employees - A good manager encourages
employees to speak up when they have insight, concerns or questions. A
manager who neglects to listen to either positive or negative feedback from
their employees, may inhibit their own decision-making abilities. Listening to
the input of employees can help managers make more informed decisions
about the business, and it can also provide affirmation for employees and help
them feel more valued. When employees feel like their insights are more
valued, they tend to become more confident and perform higher quality work.
41. Plan ahead and anticipate employee growth - If you’re tailoring job roles
and training to an individual’s skill set, then you should anticipate that they’ll
eventually outgrow their current role. While your team may be functioning
efficiently and productively now, that will inevitably change as your
employees gain new skills and interests. You may, for example, hire an
employee for a customer service role and then later identify them as a good
candidate for a supervisory role. Consider how you might expand their current
responsibilities to prepare them for a potential transition to another role.
Show appreciation and recognize achievements - It’s important to recognize
the success of employees. If an employee has a relatively meaningful
achievement, an employer can recognize their success with tokens of
appreciation such as verbal recognition, bonuses and other rewards. When
employees feel recognized and appreciated, they become more confident and
enthusiastic about their work. Appreciation should also be shown promptly and
in a way that best matches the individual, such as a bonus for a financially
motivated employee or an office award for an employee that enjoys public
recognition.
42. Pursue and share knowledge
Employees should trust that their manager has the best information and knowledge to
lead a successful team. Managers can instill confidence and spread knowledge to their
team by maintaining their knowledge regarding the industry and business. Equipped
with relevant and important information, managers can demonstrate their expertise and
authority by passing on their knowledge to employees.
Provide employees with the necessary skills, knowledge and support
A good manager wouldn’t assign a task to an employee without ensuring they have the
proper skills and knowledge to complete it. Without the right tools to do the job, an
employee may become demoralized and unmotivated. Instead, managers should support
an employee’s success by providing ongoing training in relevant areas. This training
should include skills and knowledge for their current position and roles they might
grow into.
43. Know when and how to delegate responsibilities - Best management practices
focus on individual strengths, which should include those of managers. A
manager must ensure everything runs smoothly, but he doesn’t have do it all
alone. It’s important to know when a task needs specific attention or when it
might be more efficiently handled if delegated to an employee. Giving certain
tasks of higher responsibilities to employees also helps employees feel more
trusted and confident while offloading work from management so that they can
focus on more critical tasks.
Determine the best methods for motivation - Motivating employees to
perform well and achieve their goals is an important task for a manager. One of
the overarching goals of good management is to instil employees with the ability
to work autonomously and take ownership in their roles. Employees often have
unique motivational drivers, so it’s important to individualize your motivation
approach. Some are driven by a desire for recognition, others may be driven by
monetary motivators or promotions, while others may be driven by self-
improvement and prefer to be recognized for their progress and development.
44. Create a consistent culture - To ensure a positive and productive workplace,
managers can implement and maintain a workplace culture within their own offices or
teams. A team’s culture refers to the dynamics and atmosphere of the workplace,
including how the manager treats the employees, the team’s dynamics and how the
team interacts with the rest of the company.
Some team cultures may be informal and relaxed. The primary focus may be on
building relationships and the manager may prioritize open communication. Other
cultures may be more rigid and fast-paced. The focus could be on meeting strategic
goals and the manager may be mostly concerned with enforcing deadlines. It’s
important to know what kind of culture suits your business and employees best.
Consider the individual - Effective managers work at an individual level. Rather
than focusing on the team as a whole, good managers take the time to get to know
employees individually and adjust their management style to suit them. When
managers make an effort to understand each individual employee, they feel taken care
of and listened to. This helps to reinforce their loyalty and enthusiasm for the business
and they feel important and willing to promote greater success and productivity for
the overall business.
45. Skills a good manager must have
Communication skills: A good manager can provide
instructions, give feedback and offer advice effectively to all
employees.
Organizational skills: Good managers can balance multiple
tasks and meet deadlines consistently.
Leadership skills: Good managers are not always good leaders
and vice versa. However, managers with good leadership skills
can boldly take the initiative and handle issues with confidence.
Teamwork skills: Good managers are valuable assets to their
teams. They can collaborate, negotiate and delegate efficiently.
46. Signs of inefficient management
Some workplaces suffer because of inefficient or misguided
management.
Management is inefficient when it hinders productivity instead of
promoting it.
Poor management practices include favouritism, lack of
communication and indecisive leadership.
Inefficient managers are often unaware of how their management
style affects their team members and may need guidance to adopt
more effective strategies.
47. 8 Types of Management Styles
Understanding how management styles vary can help you determine
which align best to your business needs, and ensure you’re selecting
leadership candidates with the right skills and experience.
There are three things to consider when evaluating someone for a
leadership position: their personality, their strengths and how well their
management style aligns with your business culture.
While different circumstances demand different methods of managing
employees, the best leaders are those who are committed to meeting
business goals and driving employee performance.
Identifying the best management style for each leadership role within
your organization requires careful observation and consideration. Great
leaders are flexible and can pivot towards whichever management style
will be most effective in meeting the current needs of their team and
the organization.
48. 1. Democratic management style is rooted in collaboration. These
types of leaders seek input from their employees before making
business decisions or delivering solutions. They engage employees by
remaining open to new ideas and experimentation, and granting
employees the freedom to use their voices to share their opinions. This
style of management can create strong bonds between employees and
leaders.
2. Laissez-faire management style - such leaders are hands-off and
maintain a high level of confidence in their employees. Leaders who
adopt this management style don’t micromanage their employees and
grant them freedom to work on their delegated tasks independently.
This style works best when managing highly experienced
professionals. When these self-disciplined employees are given more
autonomy, they often demonstrate greater initiative.
49. 3. Autocratic management style is centred on results and
efficiency, and usually devoid of employee collaboration and
autonomy. An autocratic style leader believes in micromanaging
employees to ensure they follow company policies and rely on
authority to provide instruction. Some aspects of this management
style may be useful in an emergency when unexperienced
employees need clear, strict expectations to solve a particular
problem.
4. Charismatic management style- such leaders are charming,
highly persuasive and deeply committed to their cause. Charismatic
leaders are also interested in building personal relationships and
rallying their team around a common goal. This style of
management is useful for helping employees feel supported, highly
engaged and motivated toward achieving business objectives.
50. 5. Coach management style – such leaders often possesses qualities similar
to a sports team coach. They’re dedicated to their employees’ ongoing
development and can quickly identify what motivates each employee to
succeed. A coaching leader is skilled in recognizing each employee’s unique
strengths and weaknesses and determining how to help them become better
professionals. They often push employees to complete more challenging tasks
that further develop their talents and improve their areas of opportunity.
6. Pacesetting management style – such leaders often set high standards for
their team and are especially concerned with speed and efficiency. These
leaders are always seeking new ways to become more productive and expect
the same of the employees they manage. This management style can help
build trust among employees who recognize their manager adheres to the
same standards they set for their team, but can also make employees feel
overwhelmed by demands.
51. 7. Bureaucratic management style - such leaders focus on assigning
specific duties to employees within a well-defined hierarchy. They’re
less concerned with collaboration and more interested in following
rules and procedures. Bureaucratic leaders assign each employee a set
of responsibilities and independent tasks, and all work is streamlined
from top to bottom. This style of leadership is useful in heavily
regulated industries, but less effective in creative environments.
8. Transactional management style – such leaders enhance employee
performance with positive rewards like bonuses and incentives, and
respond to negative outcomes with disciplinary action. They often act
as mentors, and provide explicit instruction to help increase
performance and ensure employees consistently meet expectations.
This style of management is highly effective in helping teams hit sales
and revenue goals, but less useful for leading teams or departments
focused on driving innovation.
