Is Your Management Style Assisting or Hurting Your Business?

Many times business owners can have significant differences in management styles that can deter the growth of both the employees and the business.

Employees can have differing needs that require differing methods of management as well. Problems arise when the management style of a business owner does not match the needs of the employees.

There are two basic management styles that are also broken down into more minor categories, the Autocratic Management Style and the Permissive Management Style. An Autocratic Management Style is one in which the business owner makes all decisions unilaterally. In other words, the business owner is the "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 the part of employees is encouraged in this management style.

If a business owner possesses an Autocratic Management Style, and the 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 the needs and growth of the business, as well as the 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 the business, in all facets of the 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 the management style of the business owner is appropriate. Discontentment and loss of business would be indicators that the 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 the employees plenty of input, with a rather "family style" atmosphere developing. The employees were very much engaged in the business and considered the business "their own" as well, leading to much devotion on their parts.

However, as the business grew, so did the demands of the clients. It became imperative for Karen R. to change her management style to the Authoritative Management Style, as she needed to quickly enforce parameters, and complete projects. There simply was no time for discussion among the employees, and no time for multiple approaches to each project.

This led to much discontent on the part of the employees, and they needed to be reminded that their opinions were no longer welcomed repeatedly, which left Karen R. frazzled and stressed too.

The solution: Karen R. engaged a series of psychological tests for both herself and her employees, as initially she had no clue what was wrong or how to relieve the problems. This test revealed that she was being somewhat "overly authoritative" in her approach, and also that her employees were "too expectant" in their demands that she include them in decisions. A compromise was reached, and Karen R., now allows some "input" from the employees, but retains the right to make a decision unilaterally. This combination of Authoritative/Permissive Management Styles has led to the relief of the stress within her organization, and has also led to increased happiness and productivity on the part of the employees.

Without a good knowledge of their own management styles, or psychological approaches to business, business owners can set themselves up for problems. They may be so difficult in their approach, and so set in their ways, that they in essence, would not put up with this behavior if they worked for themselves. Or they can be so passive, and so permissive, that they become "doormats" for the employees, thus not achieving enough control over the business. Karen R. above is a good example. Her Authoritative Management Style, when adopted, became much too rigid for the growth of the business, and this was because of her perceived "need" for control in a business that was growing rather rapidly. Because she herself felt somewhat overwhelmed by the growth, she tended to approach the employees, with an attitude that was too strict and unrelenting.

Assessment of situations, along with psychological tests administered to all within a business, if problems arise, can go a long way towards alleviating the problems. These tests are generally available online or from Human Resource providers.

Business owners can't rectify a problem or their own behaviors or that of their employees, unless they know specifically what these problems are. Insight into themselves and others, will assist business owners into successful resolution of all problems as they occur. Knowledge of behaviors and knowledge of management styles, can prevent problems in management problems before they happen.

Vishal P. Rao is the owner of: http://www.work-at-home-forum.com/ An online community of people who work at home.

---

Project Management 101

Project management is a very important business concept because it... Read More

Knowledge Management - Capturing And Structuring Knowledge Into Reusable Assets

Many organizations have an approach for identifying and recording lessons... Read More

The Significance of the Mundane

This article begins with a tip of the hat to... Read More

Top 7 Methods to Empower Employees

How many times have you asked someone to do something... Read More

The Compliance Officers Killer Application

It used to be that only the largest multi-nationals needed... Read More

Think Before You Talk

What you say to other people can make or break... Read More

How to Delegate Effectively

ACCOUNTABILITY: Delegation is not complete unless subordinates are held accountable... Read More

Does Your Management Style Remind People Of Something They Read In Dilbert?

With thanks to Jeff Foxworthy, the comedian who does the... Read More

Stop Waste, Fraud and Abuse

Each year, businesses write-off six percent of revenue to waste,... Read More

Your Appraisal System Can Be Better ? Overcome These Nine Serious Failings

This article is directed at senior managers. As a senior... Read More

Sexual Harassment Policy Guidelines Part I

Sexual Harassment Policy Guidelines ? Part IPermission is hereby granted... Read More

Group Decision Making : Are the Decisions Really Made by the Group?

GROUP DECISION-MAKING: Many managers feel they are well-versed in areas... Read More

To Thine Own Self Be True--Its Better for Business: What Arthur Andersen Would Say to His Company

As a child, you probably heard, "to thine own self... Read More

Is ISO 9001 2000 Right For My Business?

Firstly you should decide your own reasoning behind considering ISO... Read More

10 Critical Questions to Ask Before Hiring a Consultant

Talk to as many consultants as you can before hiring... Read More

Can Your Corporate Policy Pass the Monkeys, Bananas, and Water-spray Experiment?

Five monkeys were placed in a cage. A banana was... Read More

Great Employees = Passionate Consumers

Companies spend millions of dollars each year identifying their brand,... Read More

Project Management - The Traveling Product Manager

Various studies ? and common sense ? indicate that involving... Read More

How Can A Communications Audit Help You?

Organizations communicate in two directions: internally to staff and externally... Read More

Inspiring Loyalty and Contentment in Your Workforce

One of the first things I look at when I... Read More

Project Heroes

Project heroes. We've all heard of them. Some of us... Read More

How to Coach Your Emplyees and Increase Motivation

It is easy to spot the difference between a work... Read More

Business Innovation ? Core Competency and Competitive Advantage

Creativity can be defined as problem identification and idea generation... Read More

Jack Welch--Success Is Getting Back Up on the Horse

A few months ago I had the opportunity to spend... Read More

ISO 9001 Registration ? 8 Steps for Success

You've made the plans, built the quality system and conducted... Read More

5 Awesome Actions of Highly Creative Leaders!

How many times have you wondered why you are unable... Read More

Factoring Financing: How to Grow Your Business Without Debt or Loans

What is factoring?Accounts receivable financing, also known as factoring, is... Read More

Innovation Management ? the Root of the Problem

Creativity can be defined as problem identification and idea generation... Read More

The Top Six Reasons to Buy Rather Than Build an Inventory Management Solution

Is building your own inventory management solution really your best... Read More

Empowering Others - Giving Them Some Control

It's been a pretty good weekend around the place -... Read More

Got A Meeting Planned? Ask This Question

Meetings ? they are a fact of our business lives.... Read More

What To Do When Your IT Project Is Late, Over Budget, and Looks Like It?s Never Going To Work

Here's a scary statistic. According to four prominent research firms,... Read More

Attract and Retain Positively Great Employees - An Action Plan for Employee Training

Everyday a business owner, CEO, or manager somewhere is complaining... Read More