Management Styles: Definition, Theory & Types
Different management styles are constantly rising and falling in popularity. In this lesson, you'll learn about some of the more prominent styles of management and the theory underlying each. You'll also have a chance to take a short quiz after the lesson.
We also recommend watching Theory X & Theory Y: Two Types of Managers and Classical Management Theory (1900-1930): Definition
Management style is the manner in which an organization manages its employees and their work activities and will vary depending upon factors such as the characteristics of employees, the work activities engaged in and the culture of the organization. A successful management style should effectively build teams and be able to motivate.
Types of Management Styles
Participative Management. If you make sure that you share important information with employees and let them participate in the decision-making in matters that directly affect them, then you are using a participative management style. In order for participative management to work, employees must have the knowledge and ability to effectively participate and the company's culture must support the approach. Participative management is a good choice in organizations that are not concerned with a strict hierarchy of power and employ educated and skilled workers. An example of a business that may work well with participative management is an engineering firm.
Theory X and Theory Y. Whether you use Douglas McGregor's Theory X or Theory Y as a management style depends on how you generally view people. If you adhere to Theory X, you assume that people don't like work, they must be coerced and controlled to work, and the average person prefers to be directed because she or he doesn't want responsibility and places job security above ambition. Under this theory, you manage by using extrinsic motivators such as rewards (money and bonuses) and punishments (being written up or fired for not meeting goals).
On the other hand, if you believe people might like work, will exercise self-direction and self-control, see satisfaction as obtainable from work, seek responsibility, are creative at solving problems, and believe that everyone has intellectual potential, then you will seek to help employees achieve their potential by getting satisfaction from their work. This is Theory Y. Helping employees reach their potential and achieve job satisfaction also advances organizational goals because employee potential and job satisfaction are tied to goal achievement.
Theory Z. If you admire Japanese business, then you may like Theory Z, which combines Japanese and U.S. management elements. Specific features of Theory Z include support of long-term employment, less specialized career paths for employees, informal control, group decision-making and a concern for the individual above work issues. This management approach is designed to satisfy both lower-order needs such as basic physical and psychological needs and higher-order needs such as self-actualization. You help satisfy lower-level needs by looking out for your employees and help satisfy higher-level needs by encouraging them to take responsibility for their work and invite them to participate in decisions.
Total Quality Management. Total quality management is all about, well, quality. This management style sees that customer satisfaction and quality is the responsibility of all employees. It also sees value in teamwork and employee participation. TQM strives to have employees continually improve the quality of their work, products and services.
Management by Walking Around. You manage by walking around. The idea is that you are on the ground listening to your employees and gathering information so you can take care of problems as they emerge rather than wait for them to fester into a serious malady. However, you've got to be careful not to micromanage and second-guess every decision your employees make. You're supposed to be a coach, not a dictator.
Management by Objectives. If you manage by objectives, you and your employees set up goals and plans using participative decision-making, implement the plan, and give feedback on performance towards goal completion. The idea is that you can't achieve your goals if you don't know what they are.
Employee Empowerment. Did you ever want to be coach? Well, employee empowerment puts you the role as a coach, advisor or facilitator. Decision-making is pushed down to your employees and you help them make decisions on tasks that are important to them and the company. Empowerment works best if you set clear goals that employees can reach and you give them clear standards by which they will be held accountable. For example, a marketing team might be assigned a new campaign and be required to submit three proposals to the client within three weeks. Employee empowerment should create more employee involvement and job satisfaction, yielding better results for the company.
Self-Managed Work Teams. Here, many of the day-to-day management decisions such as spending money, who to hire, and which projects to take on are managed by a team of employees. This is probably one of the loosest forms of management styles in use.
A management style is the particular manner in which an organization's employees and activities are managed. Management styles are selected based upon the characteristics of the employees, the type of work activities engaged in and the organizational culture. Management styles differ in the degree of control managers and employees each have over employee work activities and decision-making. Some important types of management techniques include Participative Management, Theory X and Theory Y, Theory Z, Total Quality Management, Managing by Walking Around, Management by Objectives, Employee Empowerment and Self-Managed Work Teams.
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