Learn about the effectiveness of different management styles and how to determine which to use in different situations.
When used effectively, numerous unique leadership styles can aid in your success as a leader. However, finding the best management style for you depends on factors like your personality, goals and needs, and the personalities of the employees you manage. Read on to explore the three main management styles and how to figure out which is the best fit for your position.
Indeed defines management style as “the methods a person uses to manage an individual, meeting, project, group of people, or organisation” [1]. You might use one management style across all aspects of your job or shift from one to another based on various scenarios. How much work you need to do, how quickly you must complete the work, your company culture, your personality, and your team goals may all have an impact.
Your management style helps those around you understand how you work, your expectations, and how to communicate with you. When you have a clear approach to management, your employees are typically more productive because they know what you expect from them (and what to expect from you).
As a leader, you have a choice of several management styles. Each has particular characteristics, but you'll find they overlap and share traits. You may also prefer to use a combination of styles rather than just one.
Consult the list below to explore several in more detail:
In authoritative or autocratic management, leaders take a unilateral, top-down decision-making approach. Autocratic managers have clearly defined rules and manage rigid, structured environments. While this style can save time, boost efficiency, and reduce uncertainty—particularly in high-pressure situations or crises—it leaves little room for creativity or outside-the-box thinking.
You have time pressure
You're in a crisis situation
A democratic manager encourages team participation and discussion when making decisions. This style benefits from bringing more diverse perspectives into the decision-making process while allowing team members to feel valued and engaged. This approach can enhance collaboration and creativity. However, it can also take more time and may increase the potential for conflict.
Decisions don't involve private or confidential information
An organisation wants to promote and develop talent from within
The laissez-faire management style is not quite a hands-off leadership approach but allows the manager to take a step back. Employees make their own decisions and work with little guidance or instruction. In turn, the manager can answer questions and help when necessary, boosting employee motivation and creativity as part of a relaxed company culture. It can also pose a challenge for employees needing more direct support (particularly new arrivals or those early in their careers).
An organisation has a more relaxed company culture
Employees are self-motivated or have been doing their jobs for a long time
Transformational leaders create an environment that constantly changes to reach and exceed company goals. Managers inspire employees to push beyond their comfort zones by expanding their skills and expertise and taking on new projects to achieve a shared goal. This focus on lofty goals and long-term development often boosts innovation and intrinsic motivation but can lead to burnout and disruption.
A company is values-driven
Employees are adaptable and willing to take calculated risks
Collaboratively managed teams open up all ideas for discussion, with final decisions made by the majority preference rather than management alone. This style can improve employee morale while developing the leadership skills of future company leaders. Like the democratic style, this can be time-consuming. It's also possible to arrive at a majority decision that may not align with the company's best interests.
Managers and employees openly communicate
A clear objective exists that could benefit from innovative ideas
Transactional management rewards employees for reaching a goal with incentives like bonuses or stock options. Leveraging extrinsic motivation in this way can be effective when undesirable work needs to get done, but it can also discourage creativity and risk-taking. When using this style, it's vital to remember that intrinsic motivation may be stronger in the long run.
A project requires a fixed, linear process
Managing time-sensitive short-term goals
When you take a coaching approach to leadership, you become a coach to your "team" of employees. This often means focusing on your team's long-term career development, even if that means making more mistakes in the short term. A coaching style can create strong team bonds, encourage a culture of learning, and improve engagement. However, if taken too far, it can also lead to a toxic level of competition.
Teams are small, leaving time to connect one-on-one
Long-term progress is more important than short-term success
If you have a vision for your company or team and effectively communicate that vision to others, this leadership style could be a good fit. A compelling vision can inspire team members to do their best work while connecting the team through a collective purpose. This style can be effective in the right circumstances, but it might prove challenging for those who are more introverted or risk-averse.
Experienced teams are good at managing themselves
A company or team needs to undergo a change
You can take several steps to discover how you prefer to manage. Consider starting with these options:
Look inward and assess your personality, values, priorities, and goals. Doing so will help you identify your management style. Intuition is essential for all managers, and practising it can help you become a better leader.
It’s important to consider your organisation's values when determining which management style best fits you. If your organisation values collaboration, you may not want to take an autocratic approach to management. If your organisation values fast growth, you may want to incorporate traits from the transformative management style into your leadership.
Is there a leader within your organisation who you admire? If so, it may be worth asking if they can mentor you to help you refine your management style. Hiring a business coach is another option. Leaders utilise business coaches for several reasons, and improving your management skills is one of them. If you don’t know where to look for a business coach, start by asking the leaders around you for recommendations.
Leadership assessments are a great way to help you get to know yourself better because they often remind you of characteristics you tend to forget or push to the side. They also highlight your strengths and opportunities for growth, allowing you to create a clear vision for developing into the leader you want to be.
If you prefer a more formal approach to accessing and improving your management style, take a course led by an accomplished professional. A management course on your resume will also show your dedication to being a strong leader.
Management styles offer varying methods for dealing with employees, projects, and other facets of professional life. Each style, from authoritative to visionary, has advantages and use cases. Identifying the style that resonates with you requires carefully assessing your personality, goals, and values.
Continue cultivating your leadership abilities and improve your management skills as you learn from top experts in the field in this course from the University of Michigan on Coursera:
Indeed. “8 Types of Management Styles for Effective Leadership, https://www.indeed.com/career-advice/career-development/management-styles.” Accessed June 21, 2024.
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