Many times business owners can have significant differences in management styles that can deter
growth of both
employees and
business.Employees can have differing needs that require differing methods of management as well. Problems arise when
management style of a business owner does not match
needs of
employees.
There are two basic management styles that are also broken down into more minor categories,
Autocratic Management Style and
Permissive Management Style. An Autocratic Management Style is one in which
business owner makes all decisions unilaterally. In other words,
business owner is
"boss" period and doesn't value input from employees. The business owner's word is law. The Permissive Management Style allows employees to take part in business decisions. A rather considerable degree of autonomy on
part of employees is encouraged in this management style.
If a business owner possesses an Autocratic Management Style, and
employees and/or type of business would benefit more from a Permissive Management Style, problems will arise, and vice versa.
Management styles may also be "situational", in other words, should be changed depending upon
needs and growth of
business, as well as
differing situations that may occur.
How then can a business owner know if their overall "approach" or management style is hurting or assisting their business? Easy: Results.
The results of
business, in all facets of
business, will dictate which management style is needed, or if a business owner needs to amend their management style. If a business is doing well financially, if clients are routinely satisfied, if employees are happy, are all indications that
management style of
business owner is appropriate. Discontentment and loss of business would be indicators that
approach is incorrect.
An example of this will explain this principle further:
Karen R. successfully managed her own business for several years. She employed a rather Permissive Management Style, allowing
employees plenty of input, with a rather "family style" atmosphere developing. The employees were very much engaged in
business and considered
business "their own" as well, leading to much devotion on their parts.
However, as
business grew, so did
demands of
clients. It became imperative for Karen R. to change her management style to
Authoritative Management Style, as she needed to quickly enforce parameters, and complete projects. There simply was no time for discussion among
employees, and no time for multiple approaches to each project.