Management Styles – The Good, The Bad, and The Worst

It has always been a debatable issue about which is the most effective management style that can be implemented and practiced to get maximum productivity out of all employees. Some are very effective and progressive that leads to success while others are a total failure.

But seriously, is there really the best and the worst management style?

If there was a best management style, then why all organizations do not adapt to it? And why the worst style is still practiced, if it is so?

The fact is, each management style has its own pros and cons. They implement a particular style because it suits that organization better than other styles. Its advantages outweigh the disadvantages, hence suitable to their operations. This means, no style is the best but most appropriate than the rest.

Likewise, I doubt if there are any bad management styles but only bad practices or unsuitable style that leads an organization to its failure. It is like a cutting an apple with a scissor. Can you? You could, but why you would? It’s a different matter if a chosen style is inappropriate to a business operation and whether a suitable style is practiced correctly to get optimal results.

However, there are worst management styles because it is too narrow in its approach that it stifles the growth and prospects. So I will list only the good and the worst ones here.

Good Management Styles

This may not be the final list considered to be good management styles, but the ones that are popularly practiced and proven to be effective. There could also be several variants of these styles and known by other nomenclature.

1. Collaborative

Collaborative management style uses the concept of collective efforts. It is based on the philosophy that two heads are better than one. Managers share ideas and problems and encourage employees to participate actively, regardless of their level or job title. Their collaborative activities include sharing thoughts, concerns, and suggestions to arrive at solutions that help the business prosper.

This style enables a leader to retain their decision-making authority, yet gives ample room and credit to the opinions and ideas of others. They can use this style in any business where there is enough time to plan. It may not be suitable in an emergency based business, such as with an ambulance service that requires an expert to quickly make and execute decisions.

2. Authoritative

Small business owners generally have an authoritative management style. It is a traditional style where the business owner is ‘the boss’. This style is often used by owners or domain experts who know how to accomplish their business goals. Authoritative managers know what they want and direct what needs to be done. Managers with this style tend to be straightforward and to the point.

A plus point of this style is that things get done faster and accurately. It is results-oriented, and the buck stops with the manager.

A downside of this style is that there is not much room for feedback or suggestions and perhaps leave some of the best ‘thinking’ remain untapped. It may also make the employees disillusioned and demotivated.

3. Strategic

Strategic management style has a larger canvas, in terms of vision and mission of the organization. They not only communicate that vision but proactively examine the steps necessary to achieve the goal. Interestingly, they involve managers, staff, and even the customers into their planning process and gain confidence from them to accomplish their objectives.

A benefit of this style is that it conveys and helps employees to absorb the company’s vision, brand, and direction. It motivates employees to achieve and accomplish.

A downside of this style is that it sometimes does not focus on the nitty-gritty, such as implementing the correct monitoring systems to measure progress toward goals.

4. Transformational

Transformational management style deals with evolvement. It focuses on managing transitions, adopting innovation, and getting ahead of the curve. Managers with this style know that no matter how well they plan, things change eventually. They not only anticipate such changes but also lead their organization through it. They infuse modifications on their business model to overcome the growing challenges of market forces.

A benefit of this style is that it’s futuristic, adaptive, and innovative – more likely to remain significant even as the industry evolves.

A downside of this style is that some employees may not want to adapt — they may jump ship if too much change happens faster than they can accept.

5. Role-Model

Role-model management style is practiced by many successful small business owners and department heads. The focus is on exhibiting the behavior you want your employees to adopt by ‘being the model’ yourself. It is done when bringing new employees on board or developing employees for future leadership roles. Employees can emulate their superiors to progress on the organization’s goals and objectives.

The advantage of this style is that it’s easier to implement. You just need to be yourself to make others clone your style.

The disadvantage of this style is that your employees will replicate mistakes and missteps and end up in untoward consequences.

6. Activity

Activity-based management style focuses on work accomplished rather than work procedures. The emphasis is on ‘what’ they do rather than ‘how’ it is done. This style may use project management tools to monitor key dates, deliverables, and resources to realize the input-output ratio. It typically employs some sort of automated quality control system to constantly analyze the work in progress.

The advantage of this management style is that employees are enthusiastic about the projects they work on, and in some cases, they are paid additional incentives for their productivity.

The disadvantage is that quality assurance and cost metrics are needed to ensure all projects are assigned and managed within the timeframe, budget, and customer expectations.

7. Affiliate

Affiliate management style uses this method to promote harmony, cooperation, and good feelings among employees. The manager puts people first and tasks second, to motivate people.

Affiliate actions include accommodating family needs that conflict with work goals, initiatives to speedily pacify tensions between employees, and promoting social activities within the team.

The positive aspect of this style is that it creates a friendly environment and the workforce is more cooperative to share the task willingly. The flip side is that the organization needs to invest more time, money, and efforts on non-productive activities for the sake of motivation.

Worst Management Styles

Even though these management styles were (and still is) practiced in many places, it has proven to reach a dead-end because organizational culture seldom nurtures in such an environment.

1. Laissez-faire

If there’s anything that could prevent an organization from optimizing its resources, it is a laissez-faire management style. Simply put, it is a tendency among managers to avoid too much interference in employee activities.

The aptitude of these managers is lethargic. They interact minimally on how employees work, providing no direction, feedback, or support. Consequently, this would end up with rising costs, poor quality, and unhappy customers.

2. ‘Know-it-all’

In a Know-it-all management style, they disregard the workforce for their abilities. The managers behave as if they are very knowledgeable and their employees have no skills or expertise. The interaction with their subordinates is generally demeaning and demoralizing which can lead to high labor turnover.

3. Micromanager

Micromanagement is a style that refers to a scrutinizing approach. Typically, a micromanager wants to control even the smallest details of every employee’s job. They want to know the nitty-gritty of all their tasks. While this may not necessarily be a bad thing, they give workers little to no autonomy in how they perform their jobs. Workers begin to feel like they have no power to decide on their own.

4. Autocratic

Autocratic management style is also known as “my way or the highway”. In this style, the manager makes all the decisions unilaterally and manages all employees closely. There is little or no two-way communication. They put workers opinions down with forceful prevention by power or authority. This can cause poor worker morale and the creation of a “them and us” culture in an organization and most employees will find the workplace stifling.

Conclusion

As I mentioned earlier, there is no best or bad management style. The ideal style for your organization depends on your personality traits, your temperament, and your business needs. But beware, stay away from the worst management styles listed above if you want your organization to grow.

Choosing a leadership style that best suits your business and your personality is like a journey unto self-realization. Many training and consulting firms provide approach methodologies to help you determine the management or a leadership style that ideally suits your organization.

Nevertheless, the willingness to change or improve your interpersonal skills and outlook in a way that helps your employees perform (and thrive) ensures your business to progress and succeed.

• • • • •

Best Management Style for Small Businesses

Are you an authoritarian or a collaborator? There are as many leadership styles as there are business models. Here’s a breakdown of some of the main types of leadership you’ll encounter in small business management, along with their pros and cons.

1. Strategic leadership

All business involves strategy, so many managers are naturally strategic in their thinking. Strategic leadership styles focus on looking at the bigger picture. They work and lead their team with long-term goals and visions in mind, involving employees at all levels to help them achieve these goals. This type of leadership offers the opposite of micromanagement. The focus is on the vision rather than the finer details along the way.

Advantages of strategic leadership include higher levels of employee engagement, strong communication, and teamwork. By sharing the brand’s goals, employees feel as if they’re a part of the business journey which boosts motivation on the job.

This type of management doesn’t work as well if your team isn’t good at filling in the blanks with project management. You’ll need detail-oriented team members who can take your vision and run with it, or the project can fall to pieces.

2. Democratic leadership

The second of our leadership models is a democratic style of management. Democratic leaders involve team members throughout the decision-making process. While the process may not extend as far as casting votes, leaders take all viewpoints on board before having their final say.

Benefits include increased motivation from employees who feel like they play a valuable role in the business. Leaders benefit from a wide range of different viewpoints.

Drawbacks include a convoluted decision-making process if the proper systems aren’t put in place to gather input. If employees don’t have all the required facts, their input may not necessarily be helpful in every instance.

3. Authoritative leadership

The opposite of these democratic types of leadership is a more authoritative style. An authoritative manager is the primary decision-maker in the business, with the experience and skills to match. Managers direct their employees and expect their instructions to be followed.

Benefits of this management style is that it is focused on getting results, quickly. It’s well-suited to more traditional business models and fast-paced environments where time is of the essence.

The downside is that employees may feel undervalued, with a lack of diversity in viewpoints. There’s little space for input.

4. Transformational leadership

One of the most popular leadership models is transformational management. This style is fluid and agile, making it well-suited to dynamic or creative environments including tech start-ups. Transformation managers accept that the business world is always changing, and that businesses must be ready to innovate.

Benefits include adaptability, which can help any business get ahead particularly in tech-oriented industries. The leader must act as a role model, focusing on the company vision and building strong relationships with team members.

The downside is that constantly switching up procedures can leave employees confused. You’ll have to choose a similarly transformational team to navigate changes to systems and processes on the fly.

5. Collaborative leadership

The collaborative management style is related to democratic leadership, but it goes a step further. While democratic managers ask for input from employees, collaborative managers work alongside them every step of the way. You’ll often see these different leadership styles in start-up environments with small, tight-knit teams.

Benefits include a positive atmosphere where all team members feel equally valued. It also fosters a creative environment with free-flowing ideas, which can spark innovation.

The downside is that sometimes a manager will need to squash employee ideas that don’t fit into the wider vision, which is harder to do when working so closely together.

Choosing the best small business management style

With many different leadership styles, how do you know which is best for you? There’s no one-size-fits-all-solution. You’ll need to consider your core values, your own personality type, and the needs of your team members to find an answer. For small, creative teams, the best leadership models will be democratic or collaborative. By contrast, for a larger service-based team in a traditional sector, an authoritative management style might work best.

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Introduction to Business

Learning Outcomes Differentiate between authoritarian, laissez-faire, and democratic management styles

Differentiate between transformational, transactional, and narcissistic leadership styles

Regardless of their position within an organization, managers need to act as leaders. Some people think leadership means guiding others to complete a particular task, while others believe it means motivating the members of your team to be their best selves. Whatever the differences in emphasis or wording, the following is probably a fair definition: leaders are people who know how to achieve goals and inspire people along the way. In a business setting, leadership also means being able to share a clear vision of where the company is heading while providing the knowledge, information, and methods needed to get there.

A manager can take a number of different approaches to leading and overseeing an organization. A manager’s style of giving direction, setting strategy, and motivating people is the result of his or her personality, values, training, and experience. Let’s examine some of the most common management styles and the circumstances under which each is most appropriate.

Autocratic/Authoritarian Management Style

Under an autocratic management style, decision-making power is concentrated in the manager. Autocratic managers don’t entertain any suggestions or consider initiatives from subordinates. This style of management is effective for quick decision making but is generally not successful in fostering employee engagement or maintaining worker satisfaction. When do managers tend to use this style?

In crisis situations, when it’s impractical to solicit employee input, managers may become autocratic. For example, a manager might order employees to vacate the building because of fire or another emergency. Taking the time to seek advice or opinions is not only impractical but could endanger lives.

Traditionally, if the workforce is comprised of low-skill workers, employee input isn’t encouraged, because it’s considered to be of limited value or importance. However, more forward-thinking managers regard all worker input as valuable, regardless of skill level.

Laissez-Faire/Free-Rein Management Style

The laissez-faire style is sometimes described as “hands-off” management, because the manager delegates the tasks to the followers while providing little or no direction. If the laissez-faire manager withdraws too much, it can sometimes result in a lack of productivity, cohesion, and satisfaction. Under this type of management, subordinates are given a free hand in deciding their own policies and methods. When do managers employ this approach?

When workers have the skills to work independently, are self-motivated, and are held accountable for results (physicians are a good example), laissez-faire management may be effective. Highly skilled employees require less frequent instruction, and managers must rely on them to use their professional expertise to make sound decisions.

Managers of creative or innovative employees often adopt this approach in order to foster creativity. For example, computer programmers, artists, or graphic designers can benefit from a hands-off management style. Managers step out of the way to make room for new ideas, creative problem-solving, and collaboration.

Participative/Democratic Management Style

Under a participative or democratic style of management, the manager shares the decision-making authority with group members. This approach values individual interests and perspectives while also contributing to team cohesion. Participative management can help employees feel more invested in decisions, outcomes, or the choices they’ve made, because they have a say in them. When is this an appropriate managerial choice?

When an organization enters a transitional period—a merger or acquisition, expanding into a new market, closing a facility, or adding new products, for example—managers need to guide the workforce through the change. Such circumstances involve adjustments and adaptations for a large group of people, so managers may find that a participative management style is most effective.

Businesses often encounter new or unexpected challenges. During tough times, resourceful managers will solicit input from employees at many levels within the organization. A democratic approach can uncover people with invaluable experience, advice, and solutions.

Each style of management can be effective if matched with the needs of the situation and used by a skilled, versatile manager. The best managers are adept at several styles and able to exercise good judgement about which one is suited to the task at hand.

Practice Question

Transformational Leadership Style

Transformational leaders work with subordinates to identify needed change, create and share an inspiring vision, and bring about change together with committed members of a group. Transformational leadership serves to enhance the motivation, morale, and job performance of followers through a variety of mechanisms. These include connecting the follower’s sense of identity and self to a project and to the collective identity of the organization; being a role model for followers in order to inspire them and to raise their interest in the project; challenging followers to take greater ownership for their work; and understanding the strengths and weaknesses of followers, allowing the leader to align followers with tasks that enhance their performance. Transformational leaders are often idealized and viewed as moral exemplars for their contributions to a team, an organization, or a community.

Transactional Leadership Style

Transactional leadership was first described by Max Weber in 1947 and later by Bernard Bass in 1981. This kind of leadership, also known as managerial leadership, focuses on supervision, organization, and performance. Unlike transformational leaders, those using the transactional approach are not looking to change the future—they value the status quo. Transactional leaders pay attention to their followers’ work in order to find fault or deviation and gain their compliance through a system of rewards and punishments. There are two factors that form the basis for this reward/punishment system: contingent reward, and management by exception. Contingent reward provides rewards (material or psychological) for effort and recognizes good performance. Management by exception allows the leader to maintain the status quo; the leader intervenes when subordinates do not meet acceptable performance levels and initiates corrective action to improve performance.

Narcissistic Leadership Style

Narcissistic leaders are visionary and charismatic, with a keen ability to attract and inspire followers. Anthropologist and psychoanalyst Michael Maccoby observes that “one reason we look to productive narcissists in times of great transition is that they have the audacity to push through the massive transformations that society periodically undertakes. Productive narcissists are not only risk takers willing to get the job done but also charmers who can convert the masses with their rhetoric.” Narcissism exists on a continuum from normal to pathological. To Maccoby’s point, narcissistic leaders can be viewed as either productive or unproductive. Although narcissistic leaders can be transformational leaders, they can also be toxic to an organization. Narcissists tend to listen only to information and advice that supports their view, regardless of the reality. Their sense of supreme self-worth, combined with a continual need for affirmation, eliminates independent thought and creates a culture of yes people. Organizations led by narcissists are typically characterized by fierce internal competition and changing alliances. This culture can be energizing, or, if everyone and everything is perceived as a threat, destructive.

PRactice Question

In reality, leaders come in as many flavors as ice cream. There are many more types than the three described above. Some leaders are directing, and others are more relaxed—more closely resembling coaches than bosses. Leaders might not lead with the same style all the time, either. There are occasions when managers must take a firm stand, making critical decisions on their own, and other times when they work with their employees to build a consensus before acting. Each style has its place and time, and each manager has his or her own preferred approach. Consider the CEO of Japan Airlines profiled in the following video and what his actions say about his management and leadership style.

You can view the transcript for “Humble CEO” (opens in new window).

Corporate Culture

The leadership style of managers in an organization is usually indicative of the underlying philosophy, or values, of the organization. The set of attitudes, values, and standards of behavior that distinguishes one organization from another is called corporate culture. A corporate culture evolves over time and is based on the accumulated history of the organization, including the vision of the founders. It is also influenced by the dominant leadership style within the organization. Evidence of a company’s culture is seen in its heroes (e.g., the late Andy Grove of Intel , myths (stories about the company passed from employee to employee), symbols (e.g., the Nike swoosh), and ceremonies. The culture at Google, working in teams and fostering innovation, is sometimes overlooked, while its employee perks are drooled over. But both are important to the company’s corporate culture. Since 2007, Google has been at or near the top of Fortune’s list of the “100 Best Companies to Work For,” an annual list based on employee survey results tabulated by an independent company: Great Place to Work®. “We have never forgotten since our startup days that great things happen more frequently within the right culture and environment,” a company spokesperson said in response to the company first taking over the top spot.

Culture may be intangible, but it has a tremendous impact on employee morale and a company’s success. Google approaches morale analytically. When it found that mothers were leaving the company in higher rates than other employee groups, the company improved its parental leave policies. The result was a 50 percent reduction in attrition for working moms. An analytical approach along with culture-building activities, such as town halls led by black employees and allies, support for transgender employees, and unconscious bias workshops are why employees say Google is a safe and inclusive place to work. Clearly Google leaders recognize culture is critical to the company’s overall success.

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