Modern management theory acknowledges that a number of management styles exist. However, not all styles are appropriate for the modern workplace. Management theory generally recognises four main management styles, including autocratic, participative, laissez-faire and paternalistic, though the paternalistic style is not common in Australia.
While effective leaders are self-aware enough to identify the style they gravitate towards, it is wise to seek advice from a mentor or trusted ex-subordinate to gain insight into your management style.
Autocratic or directive
The modern corporation was founded on the autocratic or directive leadership style. Early companies were highly stratified with a well-defined chain of command. While this style enables rapid decision-making, fast action and promotes unity of purpose, people are mainly motivated by fear. This can hinder your staff’s capacity to develop and reduce your organisation’s capacity to innovate by narrowing the funnel of ideas.
Democratic or participative
The autocratic style worked well for around 250 years, but as workers became more educated organisations saw the benefits of flattening their management structures. As a result, the participative or democratic leadership style arose.
Under this style, managers seek input from their subordinates and encourage them to participate in the decision-making process. This is the most common style in modern corporations and, if done sincerely, can result in increased employee loyalty as they ‘buy into’ what the company is trying to achieve.
While this approach slows down decision-making processes, groups and departments usually function well, even in the absence of their leader.
Laissez-faire
A similar style that has become common is laissez-faire, where individuals are provided a set of deliverables and given free rein to achieve them. In particular, this style is popular in organisations where managers are leading highly educated, intelligent and self-motivated people who don’t like being told what to do.
Context is key
While it’s important for managers to identify which management style comes naturally to them, truly effective leaders are able to shift their style according to the situation and the person they’re dealing with.
Someone who is young and inexperienced, or not performing to expectations, may need to be micromanaged until they’re more competent. However, if you try the same approach on a highly experienced second-in-command you may drive them away.
For the modern manager, being able to correctly identify which style needs to be used when, and then adapt that style when the situation shifts, is vital.
