Management styles outline the approach someone in a leadership position takes to direct and manage their team. Over time management styles have varied and some approaches have been shown to work better than others. Which one a company or leader adopts is also contextually determined as certain industries are better suited to a specific style of management. Additionally, where in the world a business is located influences the management style adopted by it. As does the skill level of employees, their ability of self-motivation and their attitude towards working.
8 Common types of management styles
- Autocratic
- Democratic
- Lassez-faire
- Transactional
- Transformative
- Visionary
- Coaching
- Servant Leadership
Why is the Type of Management Approach Important?
How a manager leads their team can be enormously impactful on their individual wellbeing and job satisfaction. Accordingly, it plays a role with regards to the overall success and productivity of the company. This is also because leadership and leadership styles shape the ethos and approach to attainment of goals within a company. They do this by directing how communication, delegation and responsibility takes place. As well as how responsive and adaptive a business is able to be. Therefore, the management style a leadership adopt has a direct impact on the long-term viability and profit margins of a business.
The Advantages and Disadvantages of Different Management Styles
The most effective form of management is one which balances employee wellbeing and job satisfaction with attaining company targets. Practically this means creating a positive working environment where staff are able to develop their professional skills. Then use them to enhance their team’s performance to achieve clearly defined goals.
In reality there isn’t a best leadership type and style. Rather how effective a manager’s leadership skills and styles are will depend on the industry and company context it’s rolled out in. This is because each of the eight management styles have inherent advantages and disadvantages. Which can make them better suited to one context and inappropriate in another.
8 Common Styles of Management Explained
1. Autocratic Leadership Style
An autocratic management approach is typically regarded as “old school”. It’s hieratical in nature and also known as top-down management. As such the manager makes decisions with little to no input. An advantage is that decisions are made quickly, but it can have a negative impact on morale and decrease team engagement. In terms of responsibility, the buck stops with the manager and, consequently, they assume responsibility for mistakes. However, autocratic leadership is usually regarded as more advantageous for managers as it also means they take credit for team successes.
2. Democratic Leadership Style
Managers who use a democratic management style encourage their employees to give input into the decision-making processes. This allows for two-way communication, fosters ownership and collaboration. It also generally creates a better sense of cohesiveness. Usually, to ensure productivity, a manager will make the final decision. However, the end decision within a democratic leadership approach is strongly influenced by their team’s input.
3. Laissez-faire Leadership Style
Within a laissez-faire management style, staff are left to their own devices by management and consequently work autonomously. The expectation within this leadership approach is that staff need to find solutions and follow through with processes to accomplish tasks. Some companies find this business management approach very effective, especially with a highly skilled and motivated team. However, for others, a laissez-faire approach results in disastrous chaos due to decreased accountability and a lack of direction.
4. Transactional Leadership Style
A transactional management approach is based on rewards and punishments. It tends to be focused on short-term goals. This means that a transactional management style can be highly effective at achieving goals. However, it’s flexibility is limited and this type of management style doesn’t encourage long-term growth or commitment and can stifle creativity.
5. Transformative Leadership Style
A transformative management approach is underpinned by innovation. For both managers and team members there is a clearly understood link between a company’s success and remaining ahead of the industry’s curve. Practically, this means that they are agile thinkers and successfully adapt their approach. Managers who use a transformative management style accomplish this dynamic by working alongside their team. As they do, they push team members to go beyond their comfort zones in order to successfully accomplish goals.
6. Visionary Leadership Style
High levels of motivation and success can be achieved when a strong leader, who has a compelling vision, adopts a visionary management style. The effectiveness of this style of leadership is contingent on staff understanding it and buying into it. Consequently, visionary managers provide continuous feedback to staff on their performance as well as progress of a project. They are also willing to adjust the processes of achieving tasks based on employee’s advice.
7. Coaching Leadership Style
When using a coaching management approach, a manager acts as a coach. This translates into motivating employees by providing professional development opportunities. By continually upskilling their team, a coaching manager can leverage individual team members strengths and thereby improve work performance and productivity. A coaching management style improves long-term performance and company loyalty. However, the risk of using a coaching leadership style is that it tends to be time-intrusive.
8. Servant Leadership Style
Managers who use a servant leadership approach tend towards prioritising their team’s wellbeing above all else. Accordingly, supporting and empowering employees is paramount. The idea is to foster a good environment to work in, such that employees feel valued, motivated and can grow as individuals. This has the advantage of building a strong team culture and inspiring cohesion, collaboration and respect. A challenge to adopting a servant management style is that performance can become deprioritised. If this happens then complacency becomes a norm and deadlines aren’t met.
How to be a Good Manager
Every manager can benefit from doing a good management course. Management courses augment existing leadership qualities and skills. It also introduces a manger to innovative skills and helps them harness emotional intelligence. Doing a management course is beneficial for career advancement and improving team productivity. Thereby making it an invaluable investment for both the individual manager and their company because it fosters quality leadership within a workplace.
SACAP (The South African College of Applied Psychology) is a leading independent provider of accredited qualifications in Applied Psychology, Human Resource Management, Business Management, Social Work and Coaching. With campuses in major cities across South Africa and a robust online learning platform. SACAP focuses on developing knowledge, skills, and self-awareness that empower our students to make a meaningful difference in the world. SACAP offers management courses through its Management and Leadership faculty. Enquire today and discuss your options, including part-time and online courses, with an advisor.
FAQ:
1. Why does Management Style Matter?
Management styles shape the way communication, delegation, responsibility and adaptability of a company takes place. This impacts the ethos within a company, which can determine employee productivity levels and ultimately the success of the company.
2. What is the best Leadership Style?
As there is no one-size-fits all approach when it comes to successfully managing people, there is no best leadership style. This means that the best approach to managing employees is what’s industry and company appropriate. Practically it means choosing a management style that balances company productivity and success with employee wellbeing and job satisfaction.
3. What are the different types of Management Styles?
There are 8 different types of management styles. These key leadership styles are: Autocratic, Democratic, Laissez-faire, Transactional, Transformative, Visionary, Coaching and Servant Leadership.
4. How to become a good manager?
A good manager is someone who communicates well, builds trust within their team and fosters a good working environment. In order to do this most effectively, it’s best to find a management course at a reputable higher learning facility.
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