Business Management Styles

Businesses can't go without proper management. Hence aspiring entrepreneurs cannot start up any enterprise if they are not well acquainted to the art and science of business management. Given the age of the practice, plenty of business management styles have been established. Entrepreneurs who wish to succeed in their business ventures should be knowledgeable of these and be able to practice them correctly.

Here are the three types of business management styles:

1. Autocratic
This type of management hands over all of the power to the proprietor. All the decisions are made unilaterally. This management style is actually adapted when no trust is established to the workers. Essentially, everything that goes on in the business will reflect the preferences of the owner.

On one hand, this can be effective when quick decisions have to be made. It can project a cohesive and confident management. But if the reasoning of the person in power is corrupted, any decision made autocratically may put the business in demise. This also makes the business prone abuses and the workers more dependent.

There are two kinds of autocratic managers. The directive autocrat usually makes unilateral decisions and closely supervises the workers during the execution. The permissive autocrat, meanwhile, gives some space for workers to carry out the task.

2. Paternalistic
Decisions for this type of management are still unilaterally made. However, it pays more attention to social needs and worker views. Entrepreneurs who apply this are constantly consulting their workers regarding agreeability of certain business decisions and they ensure that needs are met. There is still a sense of authority fostered but moral is better cared for.

This management style builds up loyalty but like autocratic management, it still supports dependence.

3. Democratic
This style of management puts complete confidence in employees and allows them to make decisions. Authority is delegated and workers are empowered to make conclusions and plans, with the consent of the proprietor. Given the set up, this management style usually involves meetings and the formation of discussion groups.

Though this does promote independence on the side of the workers, the decision making process is severely lagged as contradictions are bound to occur. Regardless, if important matters are deliberated, disagreements may be healthy as it saves the business from biases.

4. Laissez-faire
This type of management basically involves full turnover of power. The leader stands side-by-side with his staff as they take over the responsibilities of the leader. It's every department for their selves.

Communication does run both ways and it does help bring out the best from everyone. But given that there is no unifying element to the decisions made; laissez faire's management style is actually pretty poor.

See, not all business types require the use of the same management style. And particular circumstances only welcome specific management practices. Familiarity with all management styles then makes a manager, leader and entrepreneur more flexible with changing business dynamics. In view of the nature of the task at hand, or the nature of the work force or his own personality and skills, he can appropriately extend the management style that is called for and that which he can ably exercise.