The way a business is managed can have a huge effect on every aspect of operations. As discussed in publications from organisations like the Institute of Hospitality – Hospitality Quarterly, a manager’s leadership style sets the tone for the organisational culture, influences employee motivation and performance, and ultimately impacts the success or failure of the business. Selecting the right management style for your company’s needs is crucial.
Autocratic Management
An autocratic style of management is one in which the manager retains as much power and decision-making authority as possible.
This type of manager provides clear expectations for what needs to be done but does not offer much opportunity for employee feedback or flexibility.
Although this approach can create consistent results, it often leads to low morale since workers feel they have no voice. Autocratic management is best for situations where tight control is needed.
Participative Management
With participative management, also known as democratic management, managers encourage employee involvement in decision making.
They consult with workers, listen to their ideas and concerns, and incorporate feedback into decisions about everything from operations to company policies.
This inclusive style increases job satisfaction and belonging. However, it can slow decision making and is not optimal when strong top-down control is required.
Laissez-Faire Management
Laissez-faire managers take a very hands-off approach and provide minimal guidance to employees. They put full trust in a team’s abilities to complete their responsibilities independently.
Laissez-faire management can empower skilled workers, but often leads to confusion, lack of focus, and missed objectives when team members need more leadership. It works best when overseeing highly capable, self-starting employees.
The Impact of Management Style
The repercussions of choosing the wrong leadership style for an organisation can be far-reaching. An overly authoritarian approach may lead to high employee turnover as people become dissatisfied and leave. Too much autonomy, on the other hand, could result in chaos and falling short of targets.
The impact of management style extends to customers as well. Positive company culture boosts employee engagement and satisfaction, which subsequently improves customer service and satisfaction.
Adapting Your Approach
The most effective managers are able to adapt their style to fit different situations and employee needs. For instance, being more hands-on when bringing a new team member onboard helps provide sufficient training and clarity.
But allowing more independence once the employee becomes comfortable in their role demonstrates trust and empowerment. Flexibility is key.
Setting the Tone at the Top
Keep in mind that management style filters down through the ranks. Your own approach sets the tone for how the entire company operates.
Lead by example and make sure your words match your actions when it comes to the culture you want to create. Treat employees how you want them to treat each other and customers.
Finding the Right Balance
There are pros and cons to any management approach. The key is finding the right balance – being involved enough to provide direction and oversight while still allowing autonomy. Be self-aware and mindful of the effect your leadership has.
With the proper management style for your business needs, you can keep operations running smoothly while fostering an environment where both employees and the company can thrive.
