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CHAPTER III MANAGEMENT BY OBJECTIVES IN PRACTICE

MANAGEMENT AND PROCESS (Mirjam Nilsson) - Management by objectives outlines five steps that organizations should use to
put the management technique into practice.

A. WHAT IS MANAGEMENT? Management by Objectives (MBO): (By FIRST STEP: is to either determine or revise. organizational objectives for the entire
ADAM HAYES, Management by objectives (MBO) company. This broad overview should be derived from the firm's mission and vision.
SECOND STEP: to translate the organizational objectives to employees. Drucker
- IS A STRATEGIC MANAGEMENT MODEL THAT AIMS TO IMPROVE
used the acronym SMART (specific, measurable, acceptable, realistic, time-bound) to
PERFORMANCE ACCORDING TO THE THEORY, HAVING A SAY IN
express the concept.
GOAL SETTING AND AGREED TO BY BOTH MANAGEMENT AND
EMPLOYEES. AN ORGANIZATION BY CLEARLY DEFINING
THIRD STEP: stimulating the participation of employees in setting individual
OBJECTIVES THAT ACTION PLANS ENCOURAGE PARTICIPATION
objectives. After the organization's objectives are shared with employees, from the
AND COMMITMENT ACTION EMPLOYEES, AS WELL AS ALIGNING
top to the bottom, employees should be encouraged to help set their own objectives to
OBJECTIVES ACROSS THE ORGANIZATION
achieve these larger organizational objectives. This gives employees greater
motivation since they have greater empowerment.
- ACCORDING TO THE THEORY, HAVING A SAY IN GOAL
COMMITMENT AMONG EMPLOYEES, AS WELL AS ALIGNING
FOURTH STEP: involves monitoring the progress of employees. In step two, a key
SETTING AND ACTION PLANS ENCOURAGES PARTICIPATION AND
component of the objectives was that they are measurable in order for employees and
OBJECTIVES ACROSS THE ORGANIZATION.
managers to determine how well they are met.
- MANAGEMENT BY OBJECTIVES (ALSO KNOWN AS FIFTH STEP: is to evaluate and reward employee progress. This step includes
MANAGEMENT BY PLANNING) IS THE ESTABLISHMENT OF A honest feedback on what was achieved and not achieved for each employee.
MANAGEMENT INFORMATION SYSTEM (MIS) TO COMPARE
ACTUAL PERFORMANCE AND ACHIEVEMENTS TO THE DEFINED Advantages and Disadvantages of Management by Objectives
OBJECTIVES. PRACTITIONERS CLAIM THAT THE MAJOR BENEFITS
OF MBO ARE THAT IT IMPROVES EMPLOYEE MOTIVATION AND  MBO comes with many advantages and includes employees taking pride in
COMMITMENT AND ALLOWS FOR BETTER COMMUNICATION their work with goals and disadvantages to a company's success. The benefits
BETWEEN MANAGEMENT AND EMPLOYEES. with their strengths, skills, and educational experiences. that they know they
can achieve. It also aligns employees' management and employees. Assigning
tailored goals brings a sense of importance to employees, bringing loyalty to
the firm. And lastly, management can create goals that lead to the success of
the company
workers are left alone until and unless proficiency is not met.
 Though there are plenty of benefits to MBO, there are some drawbacks and
limitations. As MBO is focused on goals and targets, it often ignores other B. QUALIFICATIONS OF AN EFFECTIVE MANAGER
parts of a company, such as the culture of conduct, a healthy work ethos, and
areas for involvement and contribution. MBO puts increased strain on What Are the Most Important Qualifications of Managers? (Lisa McQuerrey,
employees to meet the goals in a specified time frame. In addition, if 2018)
management solely relies on MBO for all management responsibilities, it can
be problematic for areas that don't fit under MBO. - Managers are charged with overseeing staff, and in general, ensuring that an
office or business runs directing various aspects of daily business operations,
What is the goal of management by objectives (MBO)? or single projects, depending on the size of a company. Managers may oversee
entire departments and the scope of responsibilities. As such, it's critical that
- MBO uses a set of quantifiable or objective standards against which to managers have certain qualifications to help their efforts.
measure the performance of a company and its employees. By comparing
actual productivity to a given set of standards, managers can identify problem KNOWLEDGE OF INDUSTRY
areas and improve efficiency. Both management and workers know and agree
to these standards and their objectives. - One of the most critical qualifications for a manager is that of knowledge of
the industry. Understanding the best practices in a business and having a good
Who invented MBO? grasp of overall operations is key to effectively managing people and
processes. That knowledge may be gained from formal or vocational
- MBO was invented by Peter F. Drucker, a management consultant, educator, education, or from work experience
and author. Drucker's 39 books have been translated into more than thirty-six
languages. Good Communication Skills:

What are some drawbacks of using MBO? - Managers must be able to communicate effectively with employees,
customers, and supervisors. This means having good written and verbal
- As MBO is entirely focused on goals and targets, it often ignores other parts communication skills and an ability to read people, troubleshoot problems,
of a company, such as the corporate culture, and help teams collaborate as necessary. A manager should also be able to
effectively articulate needs, convey information, and provide status updates to
What is the difference between MBO and by exception (MBE)? higher-ups in a company.

- where objectives or standards are managed in MBE, management only - IS A STRATEGIC MANAGEMENT MODEL THAT AIMS TO IMPROVE
addresses instances where objectives or standards are transgressed. thus, PERFORMANCE ACCORDING TO THE THEORY, HAVING A SAY IN
GOAL SETTING AND AGREED TO BY BOTH MANAGEMENT AND
EMPLOYEES. AN ORGANIZATION BY CLEARLY DEFINING  Depending on the particulars of the management role, managers may be
OBJECTIVES THAT ACTION PLANS ENCOURAGE PARTICIPATION required to also hold a particular degree or certification, or have a degree or
AND COMMITMENT ACTION EMPLOYEES, AS WELL AS ALIGNING specialized training related to their business or industry.
OBJECTIVES ACROSS THE ORGANIZATION
 General managers are sometimes called operations managers because they are
responsible for the successful day-to-day functioning of an organization.
ABILITY TO DIRECT PEOPLE Though they may have a nice private office, they spend most of their time
visiting different parts of their facilities to encourage teamwork and efficiency.
- Managers often direct the activities of other staffers, and as such, must possess Formal education, strong communication skills, and prior experience are
the ability to bring people together around a common goal. This may mean preferred qualifications
helping employees set goals, establishing parameters, and having the
resources necessary to do their jobs efficiently. for how work is performed and
ensuring that staffers' skill sets to necessary job tasks and help them pivot as
Managers must be able to match individual employees necessary to Leadership qualities:
accomplish objectives.
- General managers are often the highest-level employees in a business, and
Time Management Skills: their authority is sometimes exceeded only by chief executive leadership
skills. They must be able to coordinate officers. Being at the top of the
- Solid time management skills are a critical management requirement. This organization requires resources, including money, time, and people. Problems
means not only being able to effectively budget their own time but also that of timely manner. They juggle several tasks at once and must be quickly resolved
employees. This relates to prioritization, delegation, juggling multiple and decisions made in a hurry to meet looming deadlines. Interpersonal skills
competing priorities, and ensuring that the most critical tasks are always must seamlessly organize and direct key business vendors and customers.
addressed. Managers must also have the ability to pick up slack for their Finally, general managers are important because they interact with employees
teams, when necessary. and operations. Additionally, successful general managers communicate goals,
standards, and policies clearly and persuasively.
Problem-Solving Ability:
Education and Training:
 Managers are regularly charged with solving problems, ranging from the
simple to the complex. This requires a clear head, a calm demeanor, and an - Most general managers manage a field related to their work. For example,
ability to have pinpoint focus when necessary. Managers must have a strong engineering executives may have an electrical have a bachelor's degree in
internal fortitude that enables them to help staffers assess and resolve issues, business administration, Business Administration, especially if they have a
all while maintaining the integrity of the organization. large engineering degree. Many also have a Master's of organizations.
Through college coursework and on-the-job training, general managers gain
expertise in marketing and human resources. Certification is also all aspects of and defining what each team member should do eliminates any confusion as
business, including finance, and logistics, available from the Institute of to a team member's role and responsibility while on a team.
Certified Professional Managers. While not compulsory, the Certified
Manager credential can enhance a job applicant's prospects. Direction and delegation:

Practical Work Experience: - Managers also offer direction about where a team is going. If a team is not
headed in the right direction when trying to accomplish a certain task, or when
- A core requirement for general managers is experience, which gives them time trying to meet certain goals, a manager can steer the team back in the right
to learn different facets of the business. Many start in staff and technical direction. A manager can also delegate tasks to individuals on the team with
positions before being given tasks of increasing responsibility. They may then the appropriate skills, tasks, and experience to carry out those tasks in the
be promoted to project managers, in charge of small teams, before becoming most efficient manner possible. A manager has the ability to empower team
department heads who lead larger groups responsible for specific business members to carry out projects with direction and oversight without
areas. After proving their skills and dedication to the company, department micromanaging tasks and job duties. This is an encouraging way to boost a
managers may be tapped for a general manager position. team's morale

HOW TO BE AN IMPACTFUL MANAGER


Communication:
Examples of weaknesses for a manager position
- It is also important for managers to communicate with teams on a regular
- Good managers understand that teamwork is critical to organizational goals, basis. Some prefer daily communication, while others have weekly team
and fulfilment of a corporation's mission statement. Managing a team well has meetings. These meetings provide opportunities for employees to voice their
many to the successful implementation and realization of positive effects such concerns, impressions, suggestions, or questions they have about their roles,
as boosting productivity in work groups. A manager has much to offer teams, responsibilities, or duties. These are also opportunities for managers to show
in the way of and many other much-needed skills team needs to be their own experiences with team members, which can help teams from shared
experienced, direction, goal-setting, clear communication, successful in experiences and build a sense of camaraderie without compromising the
carrying out daily functions. manager's authority.

Goals and guidelines: Offer Rewards:


- Managers also have the ability to offer incentives and rewards for meeting
- A manager can offer teams goals and guidelines that are expected of them, and their goals and project guidelines. This can serve as motivation for team
so that each member of a team can take responsibility for the role they have members to work together in a positive and productive manner. Managers can
on so a team is confident about what a team is. Managers can provide clear work with team members in a collaborative manner to decide what type of
guidelines about being responsible while serving on the team. This a project
reward works best to motivate each member of the team the most when and communication skills and the ability to stay calm and polite under
deciding an incentive. pressure.

- Good examples may include gift certificates, a lunch at a favorite restaurant, a Stand in for Management:
day off for employees on the team, a small bonus, or other incentives that
team members agree on. - Assistant managers work side-by-side with a general manager and must be
capable of "acting up" in the general manager's absence. This means she must
be familiar with the main aspects of the manager's job and be ready to perform
UNACCEPTABLE WORKPLACE BEHAVIORS those duties when needed without burdening upper management. As an
assistant manager, you are next in line for a promotion to general
- As the job title suggests, an assistant manager helps to keep a store, management. Stepping up to the role, albeit temporarily, is a good way to
department, or team running smoothly by performing some managerial tasks, showcase your abilities.
such as scheduling work times and evaluating employee performance.
Depending on the industry, she might also be responsible for handling Handle Employee Complaints:
escalated customer queries, since assistant managers often work in a
customer-facing role. One of the main tasks is to step into what is often seen - Most businesses have a process for employees to report problems, whether
as a stepping stone for those who wish to manager's shoes in the manager's those problems concern a scheduling conflict, pay discrepancy, or an issue
absence. The role works its way up to a management position. with one of their co-workers. Often, the process starts by reporting the matter
to the assistant manager. To succeed in this role, you should be comfortable
Supervise the Team: listening to grievances and understand the proper channels for getting them
resolved quickly and professionally.
- In most organizations, it's the assistant manager, rather than the manager, who
supervises and manages employees. Day-to-day, these vacations, handling 10 REQUIREMENTS OF THE PERFECT MANAGER (Alan Nortor, 2012)
staff queries, and taking disciplinary might include organizing the team
schedule, and authorizing action. Assistant managers are also responsible for 1. Be a "people person" - Nord is people and we are looking for managers who
evaluating employee performance and arranging staff training and are people. You should be comfortable with the section. You should know how
development programs to plug any skill gaps. people work and know how to motivate your team. If you are better e
computers than people and understand Klingon better than English, you are
Help Unhappy Customers: not a good fit for our Communications Services Center, and suggest your
general team. We may, however, have an opening in sending your resume/CV
- In retail and hospitality people help unhappy customers to their overall via email with the words "CSC MAS, ROOM in the subject line. A good sense
satisfaction, such as organizing refunds and returns. The assistant manager of humor is a must-have attribute.
will also be the first escalation point for customer complaints. To successfully
perform these duties, an assistant manager needs to have strong interpersonal
2. Be visionary - who can Identify the next product or service that will Can you see 7. Lead by example - The best managers lead by example. All managers are required
the future? We need managers who can identify the next product or service that will to dress and act professionally at all times needed. Leading by example means
be in demand and bring it to life. You should be going your definition of "visionary" working late and being available to give guidance and help when on weekends with
is the try and effectively use your resources to "create the ability to see out a large your employees, parking with your employees, and using the same washroom as your
envision your career with to see out a large picture window in a corner. employees. It's all about doing instead of pontificating -- and doing the right thing.
We consider leading your team off a cliff the wrong thing -- misguided lemmings
3. Be a good communicator - You should be able to communicate effectively. Good need not apply.
communication is a two-way street. You will public speaking, email,
teleconferencing, and face-to- using methods, including visual presentations, be 8. Treat your staff like professionals - You should have confidence in your team's
required to routinely update your employees on their and the team's performance. You proficiency to decide most issues by themselves with only your guidance, as required.
will communicate any feedback from upper management and customers' We treat every employee as a professional who doesn't need immediate supervision.
performance. will provide feedback via a process called "Rate your and provide status You will be looking over your workload and not over your employees' shoulders. And
information when asked. Employees boss," which will enable managers to improve isn't that a comforting thought
their performance.
9. Encourage professional growth - All managers are expected to grow their skills
4. Be technically proficient - The we products create are technically complicated. and those of their team members. One of our mottos is "Be more than you are." No,
You don't need to be able to code in C#, but you should be able to give technical that motto is not displayed outside the company cafeteria. Another of our mottos that
guidance and decide the best strategies and methods for success. And no, having encourages professional growth is "Keep moving forward" -- and it is proudly
watched Happy Feet or the March of the Penguins does not qualify you as technically displayed in the cafeteria and on the dashboard of all company vehicles.
proficient.
10. Do something special - Satisfying all the above criteria is not enough. employees
5. Put your employees' needs first - We need managers with a selfless attitude who that need guidance. You are also required to do something special for your We believe
are willing to fall on their sword (figuratively not literally) to meet the needs of their that life is too short not to have a little sleep, followed next by time spent working.
staff. Climbing the corporate ladder should come second to the needs of those We bit of fun along the way. Most of our lives are spent therefore require our
working in the weeds. Our philosophy here is that our managers succeed best by managers to create an atmosphere of fun (in the workplace that is, not in, bed). A
satisfying the needs of their team. For example, you will be required to provide the good manager is also in the memory creation business. In the big scheme of things, a
tools your team needs. Each quarter, you will be given a bonus to distribute as you manager who doesn't create happy memories is a failure in the game of life.
wish. "Selflessness" means giving those funds to your top performers and not using
them for a round of golf with the secretary. The bottom line is that looking for the perfect boss can be fun. Of course, I expect
you to "add" to the fun by including your job requirements.
6. Encourage teamwork - Teamwork is important. Not only are you required to
encourage the best practices for building teamwork, you are considered a part of the A word of caution - At one company, my team and I had the privilege of
team. We have no doors. interviewing applicants who wanted to be our next supervisor. I emphasized that I
expected our supervisor to be available to help in any way he or she could to meet our
team's objectives. Somehow, that requirement was lost after the hire. I attribute this to accomplish everything you expect is far more effective than instilling fear or
the swelling of the head and the pressure on the prefrontal cortex that often results worry in your employees.
from landing a managerial position. I've solved that problem.
2. Learn How to Listen - You're more than just an authoritative figure to your
team, you're also a confidante. By listening to your employees, you can not only
OUR COMPETITION build up their trust, but you can also identify legitimate problems they are having
and help them find solutions.
CONTOSO
3. Learn How to Hold People Accountable - You have certain expectations for
- Our product is priced below that of other companies on the market your team, as any good leader should. And if a team member doesn't live up to
- Design is simple and easy to use, compared to the complex designs of the your reasonable expectations, there should be a set of consequences in place. You
competitors can always start with a simple verbal warning, and then move on to a written
- Affordability is the main draw for our consumers to our product warning and so on depending on the regulations in place. your company
4. Be Human - Too many new leaders think they must be robotic and free of
COMPETITORS personality in order to get respect. But your team will respect you more if you act
like you. Always be professional, but don't be afraid to let your real self show. It'll
- Company A The product is more expensive make you more relatable and trustworthy.
- Companies B & C The product is expensive and inconvenient to use
- Companies D & E The product is affordable but inconvenient to use 5. Look at Failure and Mistakes as Learning Opportunities - No one looks
forward to making a mistake or failing to meet an objective, but everyone can
learn from mistakes. Second chances can encourage better work you apply lessons
learned from errors; they will feel the next time around. Further, when your team
C. EFFECTIVE MANAGEMENT STYLES sees more comfortable and confident working under you and learning from you.
- Management Techniques and Leadership Strategies You Can Use Right Now 6. Show Your Employees That They Matter - There is nothing worse for
Whether you're taking your first foray into leadership or you simply want to motivation than unimportant. Every employee brings a necessary talent, and
enhance your style and tap into a new process, here are 6 techniques that can working with a dismissive leader who makes people feel - a contribution to the
boost your ability to lead and improve the performance of your team. table -never forget that.

1. Motivate, Don't Dominate - It often happens that new leaders have trouble 10 GOLDEN RULES MANAGEMENT OF EFFECTIVE
exerting power and influence without being overbearing. An attitude of Even if your job title doesn't include "manager," there's a good chance you'll have
domination certainly won't help encourage your team or help you earn trust. to handle some management duty sometime in your career. And, as an
Instead of focusing on being controlling, focus on ways to motivate the work entrepreneur, you're already a manager, because almost every one of your
each individual does; recognizing a job well done team to do its best. You can responsibilities has some management element to it.
do this by incentivizing and making each person feel like she has the power to
In short, your employees are the ones making your vision a reality, and your job is even just a vocal recognition. Do this in front of the group; it will make the
to make sure they do it efficiently. intended recipient feel good and show the rest of the team that hard work is
rewarded. The only caveat goes back to rule one: Be consistent in your
But being an effective manager is about more than just driving your employees to rewards so you won't be seen as playing favorites.
work harder -- or more efficiently. Forcing employees to work a certain way can
breed resentment, even disloyalty while being too soft can lead to bad habits, 5. Be the example. As the manager and leader, you should set an example in
laziness, or boredom. There's no "right" management style, as each employee and terms of your behavior. If you show up late, your team will be less punctual. If
company is going to have an individual perspective. you lose your temper easily, others will be amiss in keeping their emotions in
But there are some universally "wrong" ways to manage. Avoid them by check. Strive to be your own ideal of the perfect worker, especially in front of
following these 10 "golden" rules of effective management: the team.

1. Be consistent. This is the first rule because it applies to most of the others. 6. Never go with 'one-size-fits-all - Your team has strengths, weaknesses, and ideas.
Before your management approach can be effective, it must be consistent. You Never use the comprised of individuals with unique preferences, the exact same
must reward the same behaviors when they appear and treat every behavior approach to motivate, encourage customize your approach to fit each one. or mold all
every time they appear, discourage the member of your team with an equal, of them. Focus on individuals, and
level-headed 7. Remain as transparent as possible - Transparency shows your integrity as a
leader, and builds trust with the individual members of your team. If you lie about
2. Focus on clarity, accuracy, and thoroughness in communication. How you something or withhold information, you could jeopardize your relationships and the
communicate with your team can dictate your eventual success. or just doling respect you command as a leader.
out company updates, strive for relaying instructions, recapping meetings the
clarity, accuracy, and thoroughness of your communication. This goes for any 8. Encourage all opinions and ideas. The more people actively participating in
other medium, email, or a phone call. Clarity, accuracy whether that means in- discussions and attempting to make improvements to the organization, the better.
person communication, way the best miscommunication and keeping your Never chastise a team member for voicing an opinion respectfully -- even if it goes
team on the thoroughness of your communication. against your original vision or isn't well thought out. Cutting someone down for
voicing an opinion builds resentment, and discourages people from sharing their own
3. Set the goal of working as a team. If you want your team members to work new thoughts.
together, have them work on something together. Setting goals just for the
department or one individual breed a limited mentality and forces team 9. Help people enjoy work. You don't need a pool table or dress code abolition to
members to remain isolated. Instead, give staffers a unified focus and purpose, make work fun. You can make the workday more enjoyable with such new elements
to inspire them together. as surprise lunch outings, a dedicated break room, or even just casual conversations
with your workers. Help your people enjoy coming to work, and they'll do their best
work for you.
4. Publicly reward and recognize hard work. When a member of your team 10. Listen and ask questions. If someone doesn't agree with your management style
does something with a bonus, an exceptional, reward him/her small trophy, or or doesn't like the direction of the company, don't silence that person. Listen. And ask
questions of your entire team: What do you think of this? How do you feel about that? Employees who are lacking in motivation are less likely to be focused on their work.
This open dialogue makes it easier to proactively identify problems and work together They will also be less likely to take on any challenging parts of the role or to go
to create a mutually beneficial environment. It will also make your employees feel above and beyond what you expect from them.
appreciated and acknowledged.
What you may not realize is that your management style could be having a huge
As you'll notice, these rules leave plenty of leadership and management. They stand impact on employee motivation, and employee productivity.
as wiggle room to apply your own personal "brand" fundamental truths,
considerations, and principles rather than a strict instruction manual to success. Stay Here are some of the ways that your own particular approach to management could be
that govern an effective management role rather true to these principles in addition to having a detrimental effect on the motivation of your employees.
your own, and you'll unify your team in an enriching environment. rewarding and Autocratic Management Style: How different Management Styles affect motivation
D. IMPACT OF MANAGEMENT STYLES? and Productivity – Autocratic.

How do Different Management Styles Affect Employee Motivation and Productivity? This particular style of management is when there is usually one person who has the
(PAUL TOWERS, 2017) say on any decisions that are made. There is no argument when it comes to the
decision they have made, and they will not accept suggestions.
Whether you manage a large team, an entire business, or perhaps just one or two other
people, it is why the use of popular dispatch software is being put your job to make Adopting an autocratic management style can affect employee productivity and
sure that the work is done. No wonder into placed in various businesses. Every motivation as it tends to:
business owner wants to get the best results from their business and with the help of  Create a sense of mistrust between Managers and employees
technology, this can help them reach their goals.  Not the ideal place to foster creative ideas from employees, nor encourage
If you are struggling to think of innovative ways to effectively manage your business, them to take ownership of their roles.
it might help if you look into something like Managed Services Diagram, just so you  Make staff feel as if they are easy to replace, and not key to the company,
can get an idea as to why productivity and management are important factors in any given they are only performing a job that has been laid out step, by step for
business. As well as this, we all know that running a business is not always easy. But them.
it can be a lot easier with the help of online tools such as Evosus' all-in-one business  Each of these management traits can impact employee motivation, and if you
management software and implementing these various management styles within the find yourself adopting an autocratic management style, you should ask
workplace. Every business is different, so as long as you can find what works for you yourself how you can empower staff to make their own decisions and take a
and your team, that's all that matters. more proactive role in the day-to-day management of their job function.

One of the main influencing factors in this has to be the motivation of your Democratic Management Style
employees. How Different Management Styles Affect Employee Motivation & Productivity
Democratic
If autocratic is a "do as I say" approach, then democratic is definitely more geared  A flexible management structure allows employees to better balance work and
towards everyone. family commitments which may increase employee retention rates. The
United States of America has reported that 90% is the average employee
These types of managers will be more than happy to listen to thoughts and concerns retention rate and this could be because of the flexible structure that has been
raised by their staff, even when it comes to making a big company-wide decision. provided for the employees.
As a result, a more democratic management style typically has a more positive impact  While the laissez-faire approach can be a very productive environment in
on employee productivity and motivation by: some industries it doesn't suit all employee types. Often there are people who
want direction or to simply be told what to do.
Giving employees a sense of ownership of their to-day role. Allowing the
employees to feel as if they have real input into the daily operations of the business, In this instance adopting a laissez-faire management structure is likely to lead to a
and to see that their voice is actually heard by management. decrease in productivity as your employees simply don't know what to do on a daily
basis.
Create an environment move open to new ideas and innovation, or at the very
least provide a platform in which they can be discussed. While a democratic At the end of the day, your job as a management and leader within your organization
management style is often considered the best approach, there are times, and people is to understand your employees, the industry and the tasks that need to be completed
who don't have highly regulated industries or positions that involve a necessarily and then adopt the management structure that is going to lead to the best possible
respond well to this type of leadership. In a great deal of risk (i.e., working in the outcome. In many instances you may even find yourself taking a hybrid approach
armed forces) it is often worth trading employee flexibility/independence for the depending on the specific projects or people you manage.
safety and security of the team as a whole. How These 6 Leadership Styles Affect Performance (Jade Anderson, 2018)
A laissez-faire management style is a much more casual approach to leadership. Leadership Styles
These managers believe that an employee-led approach is the way to go and provide
minimal oversight into the day-to-day role of their employees. The leadership of a company can greatly impact a range of aspects within the
business. Poor leadership will see poor performance and potentially even hit profits.
Often, they will encourage their staff to make their own decisions and set their own
task list. This works particularly well where you have a self-motivating workforce It's often said that people leave managers, not companies, which would suggest it's
who have “bought into" the project as a whole and aren't necessarily working in the clear that leadership on the culture and the performance of a company. Staff look to
role solely for managers and leaders to motivate and encourage them. Good managers will empower
The key benefits of the Laissez-faire management style when it comes to employee Effective leaders’ cycle through different styles throughout the week to best engage
productivity with certain staff, navigate a particular situation, and get the desired results.
 Lead to new and innovative ideas being rapidly adopted within a company. It can be difficult to understand the different styles of leadership and when to use
 Employees are self-motivated and work at a higher pace/intensity given their them, but the better a leader knows which styles they can and should use, the more
personal interest in the tasks assigned to them. Now don effective their team will be.
Here are six leadership styles and how they affect performance: 3. Visionary. Visionary leaders lead with their confidence, enthusiasm, and good
communication skills to create, communicate, and work toward a vision.
1. Coercive. Most of the time, a coercive leadership style is not the best approach. A Visionary leaders work great for a team that needs a goal to work towards but
coercive leader demands authority and complicity. They have a strong drive to wants the freedom to innovate and experiment.
succeed but are often negative, and critical and rarely give out praise.
Visionary leaders empower, giving those in their team the confidence This helps
Good leaders shouldn't exert their authority over others, namely because people don't employees see how they fit into the team to take calculated risks and work
appreciate being ordered what to do. This leadership style greatly affects the team's towards a shared goal. what their contributions mean in the bigger picture.
morale and can make it difficult for employees to be honest and transparent, for fear
of being humiliated or demeaned. What is Workplace Abuse?
If employees are too afraid to voice issues, s can arise. This type of leadership will - Great visionary leaders also resolve conflict, which will happen when
likely see despise the company. A coercive leader can often assume a high turnover giving people the freedom to innovate. And while they promote
rate, and those who stay may eventually that money is the only motivator for people. innovation, visionary leaders still set boundaries and parameters, keeping
Because of employee's job satisfaction and commitment to the company can be people accountable for their actions. This makes visionary leadership one
greatly affected. can be helpful. of the most effective and positive styles for most circumstances.
While it's clear that this style of leadership is where quick decisions and actions need 4. Democratic. Democratic leaders look to build strong teams through consensus
to be made, it and collective knowledge. Teams under a democratic leader often have high levels
of commitment due to being involved in the decision-making process. This
2. Pace Setter. The pacesetter generally sets high standards by leading by inclusiveness keeps the morale high.
example. They're hard workers, highly motivated, and constantly use initiative
to try and move the company forward at a faster and better rate. Often, they This leadership style is best used when a strong direction is needed to be in place.
will pressure their team to do the same. While at first glance, this might sound It allows the company to move towards goals that the whole team can get behind.
like a good, strong leader, it can negatively impact performance. However, if a consensus can't be reached, it can slow down workflows and cause
frustration. Therefore, the democratic leadership style is best used in certain
Those who can't keep up with the high expectations feel as though they are failing, situations. For example, when the leader isn't experienced, or uncertain of what
and morale will suffer. Because pacesetters like to move fast, they rarely stop to give the next step should be.
feedback or encouragement, or simply point out the things that are wrong.
5. Coach. The coach leadership style aims to provide one-on-one, personalized
Often, pacesetters will micromanage their team. This will have a negative impact on feedback to help employees improve and reach their personal goals.
motivation and commitment, and will also affect the trust within the team. As a
leader, it's important to remember the individuals in the team. Everyone is different The coach, so to speak, encourages their team members to try things, experiment,
and will work at a different pace. and not be afraid of failure. Coaching works best when people want to improve
their weaknesses and focus on career development. A good coach leader will be
As long as expectations are fair, moving a bit slower than the pacesetter does not empathetic
always constitute poor performance.
6. Affiliate. Affiliate leaders aim to please people. This involves frequent praise and
feedback and can result in a confident, strong team.
This is great for organizations that are in communication and trust. In an environment
where need for a morale boost, team building, or improvement trust is strong
communication is open, ideas are shared easily and innovation is free to occur.
The downside of an affiliate leadership style, especially if it's the only style used, is
that poor performance can go uncorrected.
This can spell disaster for the team as they can be misguided. In other circumstances,
it could frustrate a team when someone who isn't pulling their weight seemingly goes
unnoticed.

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