Business Management: Variations on a Theme
To succeed in business, an entrepreneur must master the art of managing people. For a serial entrepreneur, the task is even larger: He or she must tailor the management style to the unique characteristics of each workforce.
As the founder of a variety of businesses — ranging from confectionery stores to a fueling station, a construction company and the world-famous Burger Barn restaurant — I’ve learned that adapting your management technique can make the difference between success and failure.
The career site Indeed.com recently reviewed some of the common types of management styles, with a special emphasis on collaborative, consultative and participative approaches. Everything depends on context and perspective, of course. General Patton would have made a poor leader of an Ivy League classics department, and a “let me see a show of hands” approach wouldn’t have gotten the Third Army over the Rhine.
With that in mind, here is how Indeed defines some effective management strategies:
Consultative
With this management style, employees feel engaged and valued. Indeed noted: “Consultative managers ask employees for feedback consistently and take employee concerns seriously. They often have an open-door policy that encourages employees to share what is and isn’t working in the organization. While managers will consult with employees, they ultimately retain sole decision-making power.”
Democratic/ Participative
This style is similar to consultative, but broader and often slower. The appropriateness of this style is directly related to the type of team you will manage. Indeed notes: “A democratic or participative manager’s decision-making process is heavily influenced by their employees. This style includes effective communication and openness through all levels of the organization, and employees and managers work together to reach the goals of their vision.”
Laissez-faire
This is a hands-off management style that gives employees the freedom to sink or swim. Depending on your business, your team may thrive with this kind of autonomy. But many employees need direction and will feel rudderless without a more engaged management presence.
Indeed notes: “In the laissez-faire management style, managers are more like mentors than leaders. They’re available when employees need guidance, but they often let employees make decisions on their own about how to move forward with projects.”
Persuasive
Transparency is central to making this management style work. If employees believe the arguments a manager presents are honest and genuine, they can be persuaded to buy into a particular decision. The opposite is also true: If employees believe the intent of outreach is to manipulate or mislead, this approach can lead to distrust.
Transformational
This management style requires a high degree of employee engagement. Team members need to view their role as something more than just a job. They may see it as a calling, even a mission. Such individuals will follow a transformational manager, but it’s a poor fit for employees with a punch-clock perspective on their work.
Teamwork
This management style focuses on employee morale, and is a good strategy for creating and nurturing future leaders of the company. For a manager who is truly devoted to teamwork, it is both energy-intensive and rewarding.
