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Different Management Styles

An autocratic management style occurs when managers tell people what to do and
expect their orders to be followed. There is little or no consultation between
management and workers. Decision making is tightly controlled.

The decisions that are made are often

quick and decisive
Decisions made by trained/qualified


Staff are not consulted and so feel

May result in low morale and

A democratic management style means that managers consult others before
making decisions. This could involve a senior manager discussing an issue with
junior managers. It could also involved managers asking other workers for their
opinions before reaching decisions.

Decisions are made in consultation

with staff thus staff fell involved and
are more likely to implement decisions


Consultations may take time so

decisions may not be made quickly

A laissez-faire style involves the minimum of managerial direction. It probably
works best in workplaces where creativity would be restricted by strict
managerial control eg web design. This does not mean that workers do as
they please all the time!

Relaxed working environment works

well for certain industries, especially
creative ones


The organisation can sometimes lack

decisions of particular levels

Impact of management styles on motivation

Autocratic style
Workers in some businesses run in an autocratic style may feel frustrated and unable to use
their initiative. This is likely to lead to low morale and little motivation. In some organisations
this type of leadership is vital, eg the Armed Forces. In moments of stress they are expected
to follow their leader without question. They are trained to respond positively to this
management style, and clear leadership in this case is likely to increase motivation and
Democratic style
This should make workers feel part of the decision making process. Workers will feel valued
as their ideas are acknowledged and viewed as important.
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However, if managers approach employees as they have no ideas of their own this will lead to
a lack of respect and a perception of poor leadership. In turn, this will have a negative effect
on morale and motivation.
This management style is quite relaxed which will not work in all industries. Most workers
need clear leadership and guidance. In creative industries eg film making, design, this style
should work well, thus increasing morale.

Credit Level
Credit Level Notes

Effective Management
Qualities of effective leadership
Effective leaders and managers have the following skills and qualities:

Good interpersonal skills, thus they can lead, organise, motivate and work with their
Good information skills, enabling them to communicate clearly and collect, process and
analyse information
Goode decision-making skills, enabling them to use information to make different kinds
of decisions

Roles of a manager

Leadership is an important part of management.

Leading by example, ie giving clear instructions, persuading and directing
It is important to gain respect from staff. Managers should have a sound
knowledge and understanding of the business and its practices.


Planning involves looking ahead and deciding what the future goals of the
organisation are. Plans should be made to achieve these goals.


Budgeting is a form of financial planning. Managers must be able to forecast

the financial needs of the organisation and show how these needs will be
A budget is a forecast of future income and expenditure, if expenses are
higher than income a business should aim to cut costs, increase selling
price or obtain a short-term source of finance. If income is predicted to be
much higher than costs managers may plan to improve premises, reward
workers or expand the business.


Managers should have a thorough knowledge of what is happening in their

organisation. They should initiate control over the way the business carries
out activities to ensure aims are being achieved.



Managers should monitor the activity of the business and the performance
of staff in order to compare them with targets and forecasts, indicating
whether plans are being met. This will enable managers to see if areas of
the business are under or over performing, thus being able to address any
problems. Failure to monitor will mean that managers will not identify small
problems early on and thus will be unable to prevent them becoming big

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Credit Level

Read each of the following scenarios and decide what type of management style is
being adopted, management styles can be used more than once:

Senior Manager to Middle Manager I am telling you, we will change suppliers



Senior Manager to the Department Managers at team meeting Do you think

changing suppliers is the correct answer to cut our costs?


Sales Manager to all Sales staff all decisions must be left to me, I know best


Managing Director to all lower level managers I want everyone to produce

what their feelings tell them is right


State one way in which a democratic management style can help motivate


How might an autocratic management style demotivate staff?


In which 2 of these businesses do you think a laissez-faire management style

would work well: advertising; car manufacturing; dress design; supermarket.
Give a reason for your answer.

Effective management involves planning, budgeting, controlling and monitoring &

Use each of these terms as heading and write a paragraph on each of these
management roles, showing what each involves

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