Question

In detail discuss, with the use of practical examples, FOUR (4) management styles and
the potential impact each style may have on a business.

Answer 1

The managers of an organization adopts various management styles based on their attitudes, perceptions etc. The four types of management styles includes visionary management style, democratic management style, coaching management style and Laissez- Faire management style.

Visionary management style: This management style is adopted by visionary leaders who possess a strong vision and direction. They focus on the goal achievement of the organization and lead the team towards the goal achievement. The leader who follows this leadership styles follow encourages authoritarian decision making system.

For example, a CEO with visionary management style focuses on implementing a change or strategy through informing the stake holders about the change, providing training and development, analyzing the risks, monitoring and controlling etc. The CEO would possess a clear vision about how to implement the change and its relevance for the organization. Based on these CEO guides the employees to reach the goal.

The visionary management style can help the business or the management to implement critical decisions effectively. For managing a critical situation, to acquire outcome effectively Visionary management would help.

Democratic management style: This is a management style through which the managers or the leader manages the employees participatively. This management style allows the employees to express their interest, opinions or feedbacks while making a decision.

For example, while implementing a change, the democratic manager would discus about the implementation of change to the employees formally. Opinions and feedbacks would be taken from the employees that would make them self responsible to get adapted to the changes.

In a business this management style can motivate the stake holders to operate for the goal achievement of the organization. This can make the employees loyal that would make them trustworthy.

Coaching management style: This management style focuses on the professional and personal growth of the employees. The leaders with this management style provide training and development, required assistance, resources etc to get equipped to meet the organizational goal. The decision making will be leader centered; the employees will have to follow it.

For example while implementing a change, the leaders with coaching management style coaches the employees based on his experience and knowledge and help them to reach the goals effectively.

In business such leaderships would lead to the generation of a potential employee pool. This approach can inspire the employees on the perception that the leaders works for the welfare of the employees. This can motivate the employees and can perform better.

Laissez- Faire management style: According to the leadership style the employees are given with the freedom to take part in decision making, problem solving etc. The leader also plays the rol of the team member. For example, while implementing a change, the implementation plan will be formulated by the employees.

This type of leadership can generate motivation, self responsibility etc in employees. But this also can generate confusion, conflicts, etc as there is no proper control over the team.