Advanced Higher Business Management - Managerial Styles

There are several types of leadership, and in business the usual types can apply, especially the main two: Authoritarian and Democratic.

Here is a summary of the main points for them both.

Authoritarian (Autocratic)

<![if !supportLists]>     <![endif]>Leader decides and then announces decision

<![if !supportLists]>     <![endif]>Consensual (Participative or Democratic)

<![if !supportLists]>     <![endif]>Leader presents problem, then group decides

Authoritarian and Motivation

Authoritarian – workers are less involved in decision making and this can result in:

<![if !supportLists]>     <![endif]>Wasting workers creativity

<![if !supportLists]>     <![endif]>Increased dissatisfaction with management

<![if !supportLists]>     <![endif]>Less motivated workers

<![if !supportLists]>     <![endif]>Need more supervision

<![if !supportLists]>     <![endif]>Staff turnover and absenteeism may be higher

Democratic and Motivation

If workers are involved in decision making then:

<![if !supportLists]>     <![endif]>They are more motivated

<![if !supportLists]>     <![endif]>Their creativity and expertise is put to good use

<![if !supportLists]>     <![endif]>Morale higher

<![if !supportLists]>     <![endif]>Less supervision needed

<![if !supportLists]>     <![endif]>Staff turnover and absenteeism reduced

However…

<![if !supportLists]>     <![endif]>Authoritarian style is effective when the manager is the only person with specific skills and experience, or if decisions have to be made quickly and finally when the group may have problems reaching decisions together

<![if !supportLists]>     <![endif]>Democratic style may mean that decisions take longer to be reached, with lengthy consultation taking place