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Styles of Business Management


The success of an organization depends upon the style of governance. Every organization has its own management code which becomes the backbone of the company’s work culture. Do you know which style is right for you and your company? Would like to find out what style is being followed in your organization? The management styles are basically divided into autocratic and democratic style. Many more styles have come into existence with the increase in competition in the market. I will deal with the traditional autocratic and democratic style and the Laissez-faire management.

Autocratic Management
“I am your boss. You have to do what I ask you to do. Do not ask questions and expect explanations for the orders given. Remember, that the boss is always right!”

Is this the situation in your company? The organization that has the manager dictating his terms and conditions to his employees follows the autocratic management. The autocratic manager makes decision without consulting the staff and he likes to remain in control at all times.

This style of management was widely followed during the 1960s and 1970s. Most of the managers selected during this period had military background. It was considered that their sense of discipline and organization will help in standardizing the work process of the company. The companies following the autocratic style did not allow creativity and free hand to the employees in their areas of expertise. This led to the downfall of many large companies as they had ‘an inability to change’. This style of management gets work completed on time as the decision-making process is quick and usually done by one person in authority. The employees in such organizations are less motivated and have low job satisfaction. The company faces a high employee turnover. This style can be applied to industries where targets have to be met in a short time and time cannot be spared in taking a consensus from the employees.

Democratic Management
“I believe in your ability. I trust your decisions. I give you a free hand in organizing your department. I expect you will get the work completed in time according to the company policies and achieve the highest results. All the best.”

Wow! What great feelings arise when your boss delegates you work combined with trust. It makes one determined to complete the task. This kind of management is called democratic management. In this style, the democratic manager empowers his employees with the responsibility of task completion. The employees can use their own methods to achieve the results on time. It involves all the staff members in decision-making and chalking out the plan of action. This highly motivates each individual and creates a sense of belonging to the organization. This in turn helps in increasing the work quality and quantity. This is a popular style of management today. This kind of management is effective when the employees have strong job skills because they require minimal supervision. The decision making takes a long time as all the members of the staff involved in the particular work need to be consulted.

Laissez-faire Management
“Do whatever you like. Take any decision you want. If you need me, I’ll be in my office.”

This style of management is the Laissez-faire management. Also known as the free-rein management. The term Laissez-faire was derived from the French expression, “leave it alone.” In this style, the manager gives most of the authority to the employees. There is very little involvement of the manager. The manager does not sit idle. He watches over the employees and guides them as and when required. He sets goals and objectives for the business and leaves the employees to perform the work as they wish. This style of management can be applied in areas where the employees need to work independently, like outdoor salespeople, writers, engineers, scientists etc. The main drawback for this kind of style is that some employees pursue their own agendas rather than achieving the organization goals.

The right management style should be chosen after understanding your own personality. Understand the kind of boss you want to be. Then you should understand the ability of your staff and lastly, the work culture followed in your organization. If all the three factors point at choosing a particular style, make it the standard style for your organization. Remember, the success of an organization lies in the hands of a satisfied and well-motivated employees.

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