Chapter 12: Management (Leadership) styles

AS Level Business​
Management (Leadership) styles
Management style, also referred to as leadership style, relates to the way in which
managers take decisions and communicate with employees.

There are four main management styles:

Autocratic Democratic Paternalistic Laissez – Faire

Watch the video on the following slide to learn about the characteristics of each management style.
Watch the video on management/leadership styles. You can also access it via this link https://www.youtube.com/watch?v=OlmmdMm52pQ
Using what you learned from the video and information from the textbook fill in the table below.
Management Explanation Advantages & disadvantages When it would be suitable
style

Autocratic Autocratic leadership is when one Advantage: Military

person, the leader, makes decisions
without asking others for their
opinions. The leader is in charge and
tells employees what to do they tell
employees only what they need to
know.
Democratic
Quick decision making.
Useful in crisis situations. Emergency situations.
Disadvantages:
Demotivating and disengaging
for employees as they feel their
opinions are not valued.

Paternalistic

Laissez-Faire
Answer the following exam-style questions:

1. Define the term ‘autocratic style of management’.

2. Explain one difference between democratic and laissez-faire leadership styles.

3. Explain one reason why a manager may need to adopt different styles of
management in different circumstances.

4. Analyse one possible benefit to employees of democratic management. [8]

McGregor Theor y X & Theor y Y

McGregor, a management theorist, proposed two contrasting theories.

He didn't say one was 100% true, but that managers' assumptions about
employees (X or Y) influenced their leadership style.

Theory X
This is a world where managers view
employees as disliking work, being
lazy, and avoiding responsibility.
They need to be closely supervised,
threatened with punishment, and
lured with rewards to get them to
work hard.
Theory Y
Here, managers view employees as
enjoying work, seeking
responsibility, and being creative.
They are motivated by challenges,
opportunities to learn, and a sense of
accomplishment.

It is important to note that McGregor did not suggest that there

were two types of workers, X and Y. The X and Y refer to different
attitudes of management towards workers
Watch the video that explains McGregors theory X and theory Y . You can also access it via this link
https://youtu.be/NK8-LhqF4N0?si=pjrtAQNBEQy7dOr3
 Theor y X OR Theor y Y
Read the following case study, analyse Kevin’s management style according to
McGregor’s theory X or Theory Y.

Modern steelmaking requires a new approach

Kevin has one set way of doing a job and expects everybody to do it his way. He has worked in the steel plant for
25 years, first as an apprentice, then as a skilled steelmaker and finally progressing to works supervisor. His
latest promotion was unexpected, especially by his workmates. Although he is very reliable and has never taken
a day off work, his colleagues question if he is the right man to manage the steelworks. He is in charge of 30 men
and $10 million worth of equipment. Steelmaking can be dangerous work. Kevin knows that he has a great deal
of responsibility. He wants the steelworks to be efficient. He believes that this means doing things his way. He
deals with the workers in the way he himself was managed in the past. He gives workers clear instructions and
tells them to follow set ways of working. If there are any problems, these must be referred to Kevin.

Many things have changed since Kevin was an apprentice. There is now virtually no manual work involved. The
equipment is now computer-operated and controllers need to be well-educated and good with their brains, not
their hands. All of the heavy work is now automated. Workers operate a flexible shift system. They can be asked
to do any of the ten different jobs that the steelmaking process involves. They are adaptable and multi-skilled,
and are used to solving problems themselves, so Kevin’s style has taken them by surprise and they do not
approve of it.
What management style
would you work best for?

What management style

would you most likely be?
Complete the following quiz to check your
understanding of management theor y and
management styles
https://quizizz.com/join?gc=91549913
Read the case study below and complete the questions.

McNuggets
McNuggets is one of the largest fast-food restaurant chains in Asia. It has a reputation for lowpriced meals of consistent quality with rapid
customer service. Research has found that customers know that, no matter which town or country they are in, they can always buy exactly the
same type of food, at similar prices, with the same quality standards. This reputation is built on a very detailed employee training programme.
Failure to pass the test at the end of the course or failure to observe the methods and work practices taught leads to demotion or dismissal. Every
single activity of the workers is laid down in company regulations. Here is a list of just some of them:
• All customers are to be greeted with the same welcome.
• Chicken nuggets are to be cooked for exactly two minutes in oil at 100°C.
• A portion of French fries is to contain 150 grams, to be salted with 10 grams of salt and to be kept for no more than five minutes before sale.
Then, if not sold within 5 minutes, they are disposed of.
• Workers are trained to specialise in undertaking two tasks within the restaurant.
The managers at McNuggets recognise that they use an autocratic management style. However, they are proud that they have thought of
everything and that workers do not have to use any initiative. All problems have been foreseen and there is a set procedure to deal with all of
them.
Workers are well looked after. The pay rate is reasonable, and there are free uniforms and employee meals. Bonuses are paid to workers who, in
the managers’ view, have given the best customer service each month. Regular meetings are held at which branch performance is discussed with
workers. They are encouraged to voice their opinions but they are told that they must never change the method of working laid down by
McNuggets head office. Employee motivation seems to be low as many workers leave each year and absenteeism is high

a i Identify one disadvantage of autocratic management. [1]

ii Explain the term ‘employee motivation’. [3]
b Explain two likely reasons for the low levels of motivation at McNuggets restaurants. [6]
c Analyse any two of Fayol’s functions of management the managers at McNuggets consider to be most important. [8]
d Evaluate whether the management style used at McNuggets is appropriate for a business such as this. [12]

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