Business management combines an interesting mix of theory and practice, and it is a particularly good topic for management and entrepreneurial types to study. Examining business management styles and finding one that suits your personality and the nature of your business is both important and worthy of your time, as being self-aware and able to identify strengths and weaknesses in your various approaches will enable more effective personal development and ultimately more effective implementation of your leadership plans, explains Nathan Jurczyk.
While many have their own individual business management styles, these are usually broadly categorized into three main classes of business management approaches.
The first approach is what has come to be known as the autocratic approach to management, which installs more trust in the leadership as opposed to the individual staff. This involves establishing a rank and order, and leaves employees in no doubt as to the leadership structure with respect to how certain decisions are being made. Rather than engaging employees within the decision making process, this business management style typically concerns businesses that require direct, effective leadership to produce results and monitor and measure training, often under pressure of
working in a tough environment, explains Nathan Jurczyk. Upon hearing the term autocratic, many tend to visualize a dictatorial approach to management. While that could perhaps be the case, it is seldom as strict as this and it is often a necessary management style in a high-paced trading environment, where there is limited margin for deliberation and group consideration.
Alternatively, there is a business management style known as the democratic style, where employees are effectively engaged in consultation before decisions are made. While some consider this to be more motivating and more enjoyable to work under, it does nevertheless have its own disadvantages. Giving employees a say may undermine the ability of the leadership team to quickly craft and implement a response to a challenge, and may ultimately cause inefficiencies in the decision making process. It is also time intensive, and perhaps not as effective in larger organizations with thousands of employees. While of course at a board room level this kind of decision making goes on every day, it’s one that works most effectively in slower paced business where decisions can be fully deliberated and considered.
Laissez Fair Management
An alternative to those two business management styles and the third main category is what’s known as the laissez fair management style. This is by definition a more hands-off approach to management, which puts the trust of running the business within the hands of employees themselves, and allows a greater degree of autonomy than would otherwise be the case. While this is strong in creative industries, says Nathan Jurczyk, some business people find that this style of management can lead to a fragmented approach to doing business and is less organized and perhaps less professional.
Whichever business management style you liken yourself to; there are advantages and disadvantages of that approach, notes Nathan Jurczyk. What’s important
is not that you recognize which of these categories you fall under, but rather that you’re aware of the improvements that can make your management style more effective and efficient to better optimize your business while also improving the relationships you share with employees at all levels of the organization.