How Management Styles Can Be Used To Maximize the Efficiency of Any Organization

How Management Styles Can Be Used To Maximize the Efficiency of Any Organization | Leadership | Emeritus

Managers form an integral part of any organization. They play a crucial role in the success or failure of their team and overall business. But not all managers have the same style of leading and managing their teams, as many different types of management styles exist today. 

This article looks at some of the management types and how they can benefit a team and business. So, let’s discover the most effective strategies for leading a team. Grab a cup of coffee, sit back, and explore these unique leadership approaches. Before moving on, let’s first understand the meaning of management style. 

What is Management Style?

Management style is the way of leading and motivating a team, which sets the overall tone for how decisions are made and tasks are completed. This style range from autocratic to servant style, allowing for varying employee involvement in decision-making and goal-setting. Management styles are highly influenced by culture, values, beliefs, personalities of team members, and other factors in the organization’s environment.

Types of Management Styles

There are various management styles, each with pros and cons. Therefore, let’s look at each style in detail. 

1# Autocratic Management

In this type of management, the leader makes decisions unilaterally without consultation from team members or subordinates and expects employees to follow the instructions. This type of management is often seen in highly regimented industries, such as military and production lines.

Pros

Cons 

Decisions can be quickly made and implemented since the manager has absolute authority to make decisions without consulting anyone else. Employees may feel disrespected or unheard when their opinions must be considered in decision-making processes.
Moreover, it is also suitable for emergencies that require quick action from a single leader. This type of management often fails to foster creativity in the workplace, as employees are discouraged from expressing their ideas and opinions freely

2# Participative Management

Also known as ‘shared leadership,’. The participative management style encourages team members to voice their opinions and participate in decision-making processes. Therefore, leaders will typically solicit input from their employees before making changes or decisions while still maintaining ultimate control over a project or team. Henceforth, this can promote a positive atmosphere where employees feel consulted and valued. 

Pros

Cons 

Employees feel more motivated and engaged due to their involvement in the decision-making process. It can be time-consuming, as there is often an extensive consultation process with employees and other stakeholders when making decisions.
It encourages creativity and innovation, as various ideas are included in the decision-making process. There is potential for conflict between different parties involved if their opinions clash on a particular issue.

3# Coaching Management

This style of management values developing team members, with the leader taking on a mentoring role that encourages employees to grow and learn new skills. Thus, the leader typically gives feedback regularly, helping employees work through challenges and develop solutions. So, it is great for fostering creativity. 

Pros

Cons 

Coaching encourages open dialogue between managers and employees, fostering a sense of mutual trust and respect. It may take longer for decisions to be made as there can be more deliberation on the issue before a decision is reached.
It allows managers to guide and support employees to help them reach their professional goals. Managers need to possess strong interpersonal skills to coach their staff members effectively.

4# Empowerment Management

Also known as “delegation”. This approach involves giving team members autonomy in their roles by assigning them tasks they are responsible for completing without direct input or oversight from a manager. Therefore, this can give staff more ownership over their work and empower them to make decisions. 

Pros

Cons 

Employees are motivated and encouraged to take the initiative in their roles, leading to greater job satisfaction and higher productivity. Without proper training or guidance, employees may be unable to make effective decisions on their own, which could lead to negative consequences for the organization.
Empowerment can help build trust between employees and leaders, allowing for a more collaborative work environment. Moreover, this style of management requires considerable resources in terms of time and money to provide the necessary support and education needed by employees for them to excel under this system.

5# Democratic Management 

So, democratic management is a style of management that encourages employees to participate in decision-making processes within their teams and organizations. Thus, this type of management style is often seen as effective because it allows for input from all team members rather than relying on one leader’s opinion. Therefore, it can be a great way to bring out the best ideas from all team members and create an environment of respect and trust. 

Pros

Cons 

Democratic management encourages collaboration among team members and builds trust between employees and leadership. It can lead to disagreements and delays in decision-making if there is no consensus among team members.
It helps to build a sense of ownership and responsibility among employees, as they are empowered with decision-making authority. There can be a lack of focus on task completion if too much time is spent discussing and debating decisions. 

Also Read: 8 Types of Leadership Styles and How to Choose Yours

6# Bureaucratic Management

In this type of management, rules, and procedures are strictly adhered to with little room for flexibility or deviation. Moreover, leaders rely heavily on bureaucracy and protocols to maintain control over a team or organization. 

Pros

Cons 

This type of management style ensures high consistency in processes and procedures since the set rules are strictly adhered to. Employees in this management style can often feel uninspired and disengaged as they may not have much autonomy or freedom to make decisions independently.
It encourages efficiency by streamlining workflows and minimizing time wastage. It can be difficult for workers to be creative due to the stringent regulations that must be followed, limiting innovation and growth within the organization.

7# Laissez-Faire Management

Also known as ‘hands-off’ management. This approach involves leaders taking a more relaxed stance when dealing with their team members and allowing them to take responsibility for their work. Henceforth, this can be beneficial in situations where employees have the necessary skills and knowledge to complete tasks independently. 

Pros

Cons 

It encourages employees to think for themselves and practice problem-solving. This management style may lead to a lack of direction or guidance from managers or supervisors.
It helps empower subordinates, giving them more sovereignty in the workplace and allowing them to take ownership of their decisions. With less oversight, there is an increased risk of making mistakes, which can affect business operations and profitability. Additionally, it can result in conflicts between employees if they disagree on how tasks should be handled without any external guidance from a supervisor or manager.

8# Transactional Management

This style revolves around setting clear objectives and providing rewards for meeting those objectives, such as bonuses or promotions. Besides that, it is highly results-oriented and encourages people to strive for success. 

Pros

Cons 

Clear expectations are set from the beginning, ensuring that employees understand exactly what is expected of them. This type of management style has little room for creativity or innovation, as it focuses mainly on following rules and adhering to specific tasks.
Rewards act as a motivating factor, encouraging employees to do their best and adhere to standards. If not managed correctly, transactional management can lead to a lack of morale within a team due to an over-emphasis on rewards rather than encouragement and growth opportunities.

9# Transformational Leadership Style

This style focuses on inspiring and motivating team members to achieve higher performance. Moreover, leaders will typically communicate their vision enthusiastically, then trust their staff to take the necessary steps to reach it. 

Pros

Cons 

Increased team morale as it encourages collaboration and collective ownership. It can be difficult for inexperienced leaders to manage their expectations effectively and maintain consistency in their leadership approach.
Higher job satisfaction amongst employees due to increased feelings of purpose and self-worth comes from being part of something bigger than one’s individual contribution. The style requires strong emotional intelligence from the leader, as they need to be able to read and understand the emotions of their team. So, if this is not done correctly, it can lead to confusion and loss of motivation among employees.

10# Servant Leadership Style

so, this approach puts the needs of their team members first, with leaders using their influence and resources to help employees reach their goals. Moreover, servant leaders will usually prioritize collaboration and communication, ensuring team members are heard and considered when making decisions. 

Pros

Cons 

Promotes trust between employee and employer by focusing on collaboration rather than hierarchy.  It may not be suitable for more competitive or fast-paced environments where quick decision-making is needed. 
Creates an environment that encourages creativity and innovation, focusing on developing employees’ skills and abilities.  Due to its focus on empowering employees, it may lead to slower progress since decisions can take longer to reach a consensus among all. 

Many different management styles can be used in various situations depending on the desired outcome or environment. While no style is necessarily better, understanding each type and its advantages can help managers choose the best approach for any situation.

Unlock your Leadership Potential with Emeritus

If looking to develop an understanding of management styles, Emeritus offers a range of leadership courses for aspiring leaders. Therefore, explore their online courses and learn skills to become an effective leader. Moreover, enrolling now will help you in taking the first step toward mastering management. They offer a range of training programs to help you develop the right skills and knowledge required to be a successful manager.

About the Author

Content Writer, Emeritus Blog
Nikhil is a passionate and free-spirited writer with 4+ years of experience. He has a keen eye for the ever-evolving content landscape, which helps him craft captivating content across various genres. He writes about marketing, data science, and finance for the Emeritus Blog. Beyond work, Nikhil is a dedicated pet parent who loves leisurely walks with his beloved puppers.
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