The key to leading employees: mastering your management style

A management style refers to one's approach to management. The different types of management approaches usually each have their own set of principles, guidelines, or policies to handle various situations at work. These factors predict how managers control their teams and react to various situations. Knowing the best management style for you helps you understand your strengths and weaknesses as a leader. This ultimately enables you to build a more efficient team. Here, we'll delve into various topics related to management approaches, including:

• 8 common management styles used in companies
• Choosing the right management style for your team
• Adapting management styles to different situations
• Conclusion
• FAQs            

8 common management styles used in companies 

Here are 8 management style examples used in the workplace:

1. Coaching

The coaching management style prioritises team members' growth and development. These managers are good at pointing out each member's strengths and weaknesses and providing upskilling opportunities. They usually encourage open communication and feedback between the manager and team members. 

• Pros: This could be one of the best management styles for employees because it enables them to reach their full potential and excel in their profession. It could also improve employee motivation, thereby boosting retention.
• Cons: An emphasis on mentoring employees may cause managers to lose focus on company productivity. This management style may not suit experienced employees.
• Example: A human relations manager who adopts a coaching style sets monthly evaluations to assess team members' current performances. This manager would also give feedback so employees can use the next evaluation date to check their progress.

2. Collaborative style

Managers who adopt this leadership style bring team members together to participate in decision-making with few hierarchical boundaries. They value each member's opinions and typically use a majority voting system when making management decisions. This is not a common leadership style in Malaysia as many value traditional hierarchies.

• Pros: Allowing all employees to contribute at work makes them feel valued. This leads to stronger team spirit and employee loyalty. A collaborative style can also improve team communication, decreasing the chances of conflict.
• Cons: Not all majority decisions are in the business's best interests. And if a manager has to reject a plan after the majority votes for it, misunderstandings can arise.
• Example: A collaborative manager may schedule a meeting for their team members to brainstorm new business strategies for the next quarter. They could then create a poll to vote for the best ideas.
• Case study: Facebook's COO, Sheryl Sandberg, is a collaborative leader. She actively fosters a culture of collaboration by encouraging teamwork and open communication among her employees.

3. Consultative style 

Consultative leaders care about their employees' opinions and seek their feedback on various aspects. A manager may adopt this approach if they're less experienced, so they need employee feedback to make management decisions. But even though they may ask for everyone's opinions, they're still the primary decision-makers.

• Pros: A consultative style can stimulate creative thinking within the team, as everyone can discuss their various viewpoints. It can also benefit the manager because they can gain new perspectives and knowledge.
• Cons: A manager may have to approve a decision that some team members disagree with. This could make the manager appear less credible or trustworthy.
• Example: A hotel manager might plan to revamp the hotel restaurant's menu by consulting the restaurant staff. They could propose new meals and drinks to add to the menu.

4. Transformational style

This management style definition relates to promoting the company's vision and using it to motivate the team to accomplish the organisation's goals. Transformational managers are usually passionate, outspoken, and charismatic leaders who can easily inspire and connect with others. This approach is usually most effective when the company is going through drastic changes and requires someone inspirational to boost morale and maintain productivity.

• Pros: This style can unify employees and instil within them a better work ethic and stronger values. Creating a common objective pushes employees to strive for excellence together and makes them more adaptable to industry changes.
• Cons: Employees who lack discipline and focus may find the transformational style difficult to work under. If they easily lose sight of the company vision, they could disrupt team spirit. These employees might also feel stressed when they can't keep up with the changes.
• Example: A rising technology start-up might have grand visions of its technology and how it can transform everyday lives. TThese visions could heavily influence employees and spur them to achieve the company's vision.

5. Laissez-faire style

Also known as the delegation style, this management theory gives employees the freedom to make decisions and execute daily tasks. These managers offer little supervision or guidance, as they trust employees to accomplish tasks independently. A laissez-faire manager is barely involved in employees' work lives and only checks in when there are problems.

• Pros: Giving employees free rein over their projects empowers them to become independent thinkers. This benefits managers, too, as it frees up their workload, allowing them to focus on other managerial tasks. 
• Cons: A laissez-faire style could make team members feel disconnected from their manager. This could then cause the team to be less bonded. If a team has mostly junior staff or inexperienced employees, this would not be an effective management theory. Less experienced employees usually thrive under structure and guidance.
• Case study: Warren Buffett is a renowned laissez-faire leader who takes a hands-off approach to managing his businesses. By giving his managers full autonomy over workplace operations, they successfully merged two companies to form one conglomerate, which massively contributed to Buffett's success today.

6. Paternalistic style 

A manager who uses this style tends to act like a parental figure for their employees. These managers treat employees like family and act in their best interests. Team members are not usually actively involved in the decision-making process under this style. However, paternalistic managers will still think about decisions from an employee's perspective. These leaders typically emphasise loyalty, obedience, and employee welfare. Paternalistic leadership is a more common Malaysian leadership style.

• Pros: With a strong focus on employee well-being, this approach cultivates a tight-knit team, which enhances employee motivation and retention. It also fosters a positive company culture in which employees are well-treated.
• Cons: This style may limit an employee's creativity and decision-making abilities. This could then negatively impact their ability to reach their maximum potential. Employees who work in such a business environment are also usually unable to work independently.
• Example: A businessman could adopt the paternalistic leadership style to mentor and guide his employees. He might hope that one of them can take over his business in the future.
• Case study: Jack Ma, CEO of Alibaba, is a classic paternalistic leader. As a former teacher, he always believed that his employees, or students, should perform better than him. He sincerely imparted his skills and knowledge to his staff.

7. Transactional style

This type of manager engages in a straightforward relationship with their employees. Employees receive rewards if they complete a task and punishment if they underperform. This type of leader delegates assignments, assesses employee performance based on structured metrics, and systematically handles workplace situations. Rewards they give could include bonuses or promotion opportunities, and punishments could be disciplinary hearings.

• Pros: This style promotes fairness, as managers judge all employees based on an impartial system. It could be an effective management technique because rewards motivate employees to work hard on projects.
• Cons: A transactional approach can foster a competitive business environment, which may hamper employees' self-confidence. Ineffective rewards or punishments could also make employees unmotivated and less productive.
• Example: A retail manager could use a reward and punishment system to push staff members to hit monthly targets and boost sales. 
• Case study: Co-founder of Microsoft, Bill Gates, adopts the transactional management approach. He set specific goals and performance-based rewards to boost his employees' productivity. This has contributed greatly to Microsoft's outstanding software quality.

8. Authoritarian style 

Another common leadership style in Malaysia, this management approach leans more toward the extreme side of authority. The manager holds sole power and control in all company decisions. These leaders use the traditional top-down method to instruct employees and set the company's formal structure. They expect complete obedience from employees and seldom listen to or take feedback from them.

• Pros: A single decision-maker can make decisions quickly, which is effective during emergencies. Employees will also receive a clear delegation of assignments, thereby improving productivity.
• Cons: This style could make employees feel micromanaged, adding to the work pressure. Employees may feel this style' limits their freedom to express ideas and learn new skills, leading to high employee turnover.
• Case study: Elon Musk, the CEO of Tesla and SpaceX, is an authoritative leader. Musk frequently makes key decisions without the approval of or feedback from his employees.

Choosing the right management style for your team 

To choose the right management style for your team, here are some factors to consider:

Company culture

Your company culture plays a significant role in determining suitable management approaches. For example, a fast-paced company may require an authoritative or transactional management approach to maximise productivity. On the other hand, a fun-loving start-up may prefer managers with a laissez-faire or collaborative management style to foster strong relationships within the team. In Malaysia, hierarchy plays a significant factor in company culture. Understand their seniority structure and religious manners, especially when treating seniors.

Characteristics of individual hires

Your personality traits and values largely determine what organisational style suits you best. It's best to adjust your management style according to your strengths and weaknesses. For example, a nurturing figure could adopt a coaching or paternalistic management style.

Organisational needs

Managers may need to adjust their management style to adapt to their organisation's changing needs. For instance, if the organisation is having a public relations crisis, managers need to regain team members' confidence and revive the company spirit. This requires a more democratic approach. 

Adapting management styles to different situations 

There's likely no one management style that works best for your company or team, as it usually depends on the current work situation and dynamic. Flexibility is one of the key factors in becoming a successful manager. 

How adapting different management styles benefits employees

Here are some reasons why adapting a management approach might benefit employees:

• Improves employee retention: A flexible manager actively listens to employees and observes changing requirements. This leads employees to trust their manager and makes them more willing to work hard for the company. 
• Remain relevant during changes: Leaders who can adapt to change tend to maintain their focus and not let uncertain times affect their thinking. They can then effectively handle new challenges and help employees remain relevant through these changes.

How to adapt leadership styles in a company

Here is a guide to adapting various leadership styles in a company:

• Identify current business needs: To implement effective management practices for your situation, identify what the company should prioritise at the moment. Elon Musk is a real-life example of someone who leveraged the increasing demands for technological change by starting his two successful companies, Tesla and SpaceX. 
• Formulate plans and structure: Once you've decided on a management approach, you can also choose a contingency approach to lead your employees through workplace or market changes. This can redirect employees who feel lost and rebuild the team's confidence. For example, a public relations manager can create a crisis management plan for when the company faces backlash from the public.
• Communicate with employees and stakeholders: A good way to evaluate the effectiveness of your new management style is to seek feedback from employees and stakeholders. Aim to understand how the change in leadership style affects their well-being and productivity. Acknowledge your employees' concerns and work on areas that could improve to cater to the employee's general interest and keep their support.

Conclusion 

Today's dynamic business landscape, especially in Malaysia, is unpredictable. So, adaptability is one of the most important characteristics a manager can have. If you're a manager, communicate with your employees to keep updated on new situations. Employees will then feel secure under your guidance and valued in the workplace.

FAQs  

1. Which is the best management style?
   ⁠Of the various business management styles, there is typically no best one. Each organisation has its own unique culture, organisational needs, and work setting. It's best to first understand each company's situational variables and then decide on the best leadership style to use.
   ⁠
2. Which management style is best suited to startups?
   ⁠New companies undergo relatively frequent changes in organisational structure and operations. So, they'd require a manager who adopts one of the more modern and democratic leadership styles, such as laissez-faire, coaching, or collaborative. These approaches to management are also usually more appealing to younger generations.
   ⁠
3. What is the system approach to management, and how does it work?
   ⁠The systems approach to management views the entire business and organisation as one system. This approach believes the business is an open system comprising several interdependent subsystems, making it susceptible to environmental or external changes. Acknowledging the systems approach emphasises the importance of interacting with the business's external environment, as the business can use it to gather data, materials and energy.