A LevelBusinessCIERevision NotesHuman Resource ManagementManagementManagement Styles

Management Styles (CIE A Level Business)

Revision Note

Lisa Eades

An Introduction to Management Styles

  • Management styles are different approaches to leading and managing a team or business
  • They reflect the behaviours and attitudes of a manager towards their team members and influence the organisational culture, productivity and performance
  • An effective manager will be able to use a variety of styles depending on the situation, to achieve the best results for the business
  • Four common management styles include:

Diagram: Common Management Styles

1-4-5-types-of-leadership-styles-1

Managers can adopt a range of styles, including autocratic, paternalistic, democratic or laissez-faire
 

  • The choice of management style can be influenced by the business circumstances, as well as the nature and size of the business

Autocratic Management

  • An autocratic manager holds absolute power and authority over a business
    • The manager makes decisions without seeking input or agreement from others
    • They typically expect strict obedience and compliance from their subordinates

  • Autocratic managers often have complete control over the decision-making process
    • They set the direction and goals of the business
    • They do not usually consider the opinions, ideas, or expertise of their team members
    • Their decisions are generally not open to discussion or debate

Situations where Autocratic Management is Especially Effective


Situation
Explanation

Crisis situations
  • In times of immediate crisis, such as natural disasters or military conflicts, quick and decisive action is often required

  • Autocratic managers can make swift decisions without the need for lengthy discussions, which can be crucial in emergency situations

Hierarchical organisations
  • Organisations with highly structured hierarchies may benefit from autocratic management for the sake of coordination and efficiency

  • In military units, for example, commanders often need to give clear and direct orders that subordinates must follow without question 

Time-sensitive projects
  • Autocratic management can help speed up decision-making

  • In businesses with strict deadlines, such as construction or event planning, an autocratic manager can ensure that tasks are completed promptly by providing specific instructions and minimising time spent on discussion

Inexperienced or unmotivated teams
  • Autocratic management can be effective when working with teams lacking the necessary skills, experience or motivation

  • By providing clear direction and close supervision, an autocratic manager can guide the team towards achieving their goals more efficiently

Maintaining order and discipline
  • In businesses where strict discipline and adherence to rules are important, such as energy generation, an autocratic manager may be necessary to ensure compliance and maintain order

 

  • Whilst autocratic management may be suitable in certain situations, it can also have drawbacks, including 
    • Reduced employee morale as workers have no input into decision-making
    • Limited creativity as employees are required to follow strict instructions and are closely monitored
    • Lack of input from team members restricts an important source of problem-solving ideas and innovation

Paternalistic Management

  • Paternalistic managers assume a 'fatherly' role towards their subordinates, acting in a protective and authoritarian manner
    • The manager makes decisions for employees while also showing concern for the well-being and development of  subordinates
    • The manager takes on responsibility for the welfare of their employees
      • They may provide guidance, support, and resources to ensure the success of their employees
      • Huawei’s Ren Zhengfei is viewed as a paternalist who has shaped the businesses culture with well-defined goals, employee devotion and absolute obedience in return for highly competitive pay and opportunities for staff to buy shares in the company
         
  • Paternalistic management can create a sense of security and support among employees, increasing their loyalty and reducing staff turnover

  • It can also be perceived as controlling and limits creativity and innovation within a business

  • It may create a dependency on managers, which restricts personal growth and professional development among employees

Democratic Management

  • Democratic managers actively involve employees in the decision-making process and encourage discussion, though they have the final say
    • Consultation, collaboration, delegation and teamwork are common features of democratic management

  • This management style is most effective in organisations with skilled, experienced and creative employees

Evaluation of Democratic Management


Advantages
Disadvantages

  • Encourages participation in decision-making 

    • This involvement can lead to higher levels of employee engagement and job satisfaction, as individuals feel valued and empowered when their opinions  are considered

       

  • Encourages creativity and innovation within a business

    • Employees are more likely to share ideas and think outside the box when they have a say in decision-making
       

  • Can lead to more comprehensive problem-solving and decision-making

    • By considering a range of viewpoints, managers can make more informed choices and avoid potential pitfalls

  • Time consuming

    • Engaging all team members in discussions, collecting input and reaching agreement can slow down decision-making
       

  • Conflicts and disagreements may arise

    • Resolving these conflicts can be challenging and time consuming
       

  • May result in compromise on the quality of decisions

    • Popular opinions may overshadow expert knowledge and decisions may be watered down or influenced by the desire for agreement rather than the best outcome

Laissez-faire Management

  • Laissez-faire managers play a minimal role in directing their business team
  • They allow subordinates significant autonomy and freedom in making decisions and completing tasks

  • Laissez-faire management is most appropriate where workers are highly skilled and self-motivated and require minimal supervision
      

Evaluation of Laissez-faire Management


Advantages
Disadvantages

  • Encourages creativity and innovation within the business
    • By giving employees the freedom to explore ideas and make decisions independently, it allows for diverse perspectives and fresh approaches to problem-solving

  • Empowers employees
    • Employees are empowered because they have autonomy and ownership over their work
    • This can enhance job satisfaction, motivation, and a sense of responsibility among team members as they feel trusted and valued

  • Decentralised decision making
    • Employees can quickly respond to challenges and make decisions based on their expertise and knowledge 
  • Inefficiency and lack of coordination
    • The absence of direct guidance and supervision can lead to inefficiency, a lack of coordination within the team and a decrease in productivity 
    • Individuals may struggle to prioritise tasks or make informed decisions

  • Inconsistency in the quality and outcomes of work
    • Different employees may have varying approaches, leading to a lack of cohesion and potential conflicts in the team
       
  • It is challenging for managers to monitor progress, identify issues, and ensure that goals are being met
    • This can lead to decreased productivity and difficulties in holding individuals accountable 

McGregor's Theory X & Theory Y Managers

  • In the 1960s, social psychologist Douglas McGregor developed two contrasting theories that explained how managers assumptions about what motivates workers affects the style of management they adopt

Assumptions of Theory X & Theory Y Managers


Theory X
Theory Y

  • The average employee
    • Does not like work and tries to escape it whenever possible
    • Must be persuaded, compelled, or warned with punishment to achieve organisational goals
    • Must be closely supervised and directed
    • Has little or no ambition beyond financial goals
    • Dislikes and avoids responsibilities
    • Will resist change

  • The average employee
    • Perceives their job as relaxing and normal
    • Naturally wants to make effort in their job
    • Does not require threats or coercion to work, as they  can self-direct and have self-control
    • Is loyal and committed to the organisation.
    • Recognises and welcomes responsibility
    • Has skills, capabilities, resourcefulness and innovative potential which can be used to solve business problems

  • Holding these assumptions about their workers means that managers are likely to adopt different approaches with their employees

Diagram: McGregor's Theory X and Theory Y

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McGregor's Theory X and Theory Y managers adopt different approaches with their subordinates, based on their assumptions about their attitude to work

Theory X and Theory Y Approaches to Management

  • Theory X managers closely supervise their employees
    • They provide clearly defined tasks and the promise of higher pay or the threat of punishment as means of motivation
    • They may use autocratic measures, which can result in mistrust and resentment among employees
    • McGregor recognised that this approach can be appropriate, especially where workers lack experience or maturity
    • It is generally inappropriate for employees with more complex motivational needs

  • Theory Y managers establish a positive working environment
    • The organisation's objectives match employees' personal objectives
    • They develop a cooperative relationship with employees and allow them freedom to make and contribute to decisions
    • McGregor acknowledged that this theory isn't appropriate in every situation and proposed it as an alternative to persuade managers to adopt a positive mindset when managing subordinates

Exam Tip

Your exam case study is likely to provide some hints about the management style adopted within a business. You may find that a manager adopts elements of different styles and should be able to explain why this may be. You may consider the business context, business objectives, the type of workers, timescales, and the level of risk in your explanation.

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    Lisa Eades

    Author: Lisa Eades

    Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.