How Business Management Styles Influence Your Operations

No two leaders will have the exact same approach to the considerable task at hand, but it can be remarkably helpful to see what others do so you can make better decisions regarding your own management style. Let’s take a look at some specific leadership styles and whether they work well (or don’t).

Which One of These Styles Resonates with You?

Autocratic

Those who make decisions without any input from others or delegation—in other words, they have complete and total control over their business—can be considered autocratic leaders. This methodology can be very helpful when control and decisiveness are necessary. There is no beating around the bush, no waiting around for others… just action.

Granted, this comes at a cost. This type of leadership can be susceptible to the dreaded micromanagement, which can decrease creativity. If you add different leadership styles to your business, you can lessen the impact of this management style.

Bureaucratic

There is also the type of business owner who cares very much about policy, process, rules, and traditions. They respect the chain of command and tend to rely on methods that have yielded results in the past. For grown businesses with firm operations, this approach can foster predictability and consistency. However, it can also prevent innovation, so a fine line must be walked.

Coaching

Some leaders opt to focus their management efforts on breaking down internal teams based on strengths and skills, which allows for a coaching (or conscious) leadership style. Team members are assigned tasks, provided with feedback, and regularly evaluated by both peers and supervisors to help them grow their own skills in support of your business objectives. With the right approach, this type of leadership provides a positive and supportive environment where employees flourish.

This type of close supervision and mentorship does take time, though, and businesses that are already strapped for it will have trouble finding more of it. Those who can, however, can reap the rewards.

Democratic

Another management style emphasizes individual voice and hearing what everyone has to say. This is democratic leadership, and businesses with multiple perspectives have an easier time including employees and making them feel like their decisions and opinions matter. Again, however, this is a time-consuming leadership style, and people could have objectively bad or uninformed opinions, leading your organization in the wrong direction.

Laissez-Faire

This style is more hands-off than the others, based on the ideas of trust, empowerment, and autonomy. Team members are held accountable for their roles and responsibilities, and leaders are left to make the high-level decisions that go into managing a successful business. This type of leadership style helps employees feel valued, but it can also have the exact opposite effect for new employees who are unfamiliar with institutional policies and procedures.

Pacesetting

Some leaders like to take to the front lines and do the work themselves while showing others how it’s done. In this way, they set the standard for what is expected of others. This can help to boost morale and it can also help motivate employees to do the kind of work expected of them. However, it can also set unrealistic standards and expectations, which can have the exact opposite effect.

Situational

Sometimes specific circumstances require specific styles, which we call situational leadership. These leaders can adjust their styles according to what is needed in the moment, allowing them to operate within the context of the current reality. Leaders who want to make exceptional use of this technique need to balance short-term and long-term management styles effectively.

Strategic

Strategic leaders combine their interests with the team's to tap into everyone’s visions for the future. They help their employees be more productive, collaborate with them to reach business goals, and increase accountability as needed. This approach works well for just about everyone involved, and a skilled leader can maintain balance now and in the future.

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