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Transcript of Management Styles...
1939 Study on Leadership
How Leadership Decisions Flow in Laissez-Faire
Effective with group members who are:
Capable of working on their own
Pros and Cons of Laissez-Faire
Donna Karan New York, DKNY
Fashion empire; designer clothes for women and men
Vision and direction-2002 and beyond
Companies that use Laisez-Faire
Autocratic Method of Management is the least desired by the majority.
Autocratic Leadership equals to command and control
The Leader is the Self Ruler who makes all decisions by him or herself
Directive Autocrat and Permissive Autocrat
Rome was transformed from democratic to autocratic by Augustus
Derived from the Greek Word Autokrator- Self Ruler
Practiced by Russian monarchs in 1742
Most commonly used in small businesses
Quick & Easy decision making
Directions are clear
Leader doesn't have to consult with anyone
Pros and Cons
Co-founder & visionary of
was an autocratic leader
He would burn out the most motivated worker
Co-founder & entreprenuer of
was a very controlling autocratic leader
Much of his success was due to quick decision making
Leaders and Companies
What it entails:
Very little guidance from leaders
Complete freedom for followers
Leaders provide tools/resources
Members solve problems
Not ideal when group members are/have:
Time management issues
Warren Buffett, CEO Berkshire Hathaway
One of the world's wealthiest persons
Employs "hands off" approach
Real-Life Encounters with Laissez-Faire
United States Air Force
What it entails:
Empowering the employees to take part in the decision making process.
Leaders tend to lead by example and set a high standard for themselves and their employees. They would not ask an employee to take on a task they would not do thmselves. They are highly involved in the day to day work and fully aware of what is taking place in the workplace.
Veronica Grant, Velia Marquez, Lisa Fasheh, Karla Aguillon, Alex Lopez
Robert Tannenbaum and
Warren H. Schmidt (1958, 1973)
allows employee help with decisions
everything is agreed upon by the majority
communication is extensive in both directions
Companies that use the Democratic style:
Bank of America
1. Good business fit
2. Good in creative environments
3. Build strong teams
2. Become apologetic
3. Can appear indecisive
Working at Bank of America
Working with small businesses
Uses at work:
When to use the Democratic style:
Getting a unanimous decision
Company w/Active Style
*Stater Bros store managers tend to use the Active style very often.
*Corporate supervisors also tend to us the Active style.
Personal Encounter w/Active Style
Traced back to the post WWII writings of many scholars.
Suggested in the classical Hawthorne experiments.
Involves management treating the ideas and suggestions of employees with consideration and respect.
Allows employees to set company goals, suggest schedules, and implement solutions.
Creates employee ownership of the company
Instills pride and motivation in employee.
Creates employee comittment
Managers must make sure employees still do work
Managers must maintain authority
Upperlevel management will not approve
Stressful for Creative and Innovative Staff
Staff can not contribute ideas
* I have worked for my company for a bit over 3yrs
* Manager works with us
* Employees seem more motivated
* Tough situation, Manager works with us
* Manager constantly walks store and keeps himself up to date
*Do you describe yourself as an Active Manager?
* How does this style help you/How do you apply it?
*Is having a management style important as a manger?
*How do you know what style to use and apply?
Manager Interview Cont...
*How would you describe the Coporate Division to be?
*How long did it take you to become Store Manager?
American Red Cross
Ben & Jerry's
Tembec Forest Productions