Managers, leadership and decision-making

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5.2 Introduction to leadership styles

The way in which bosses deal with their employees is known as their leadership style. Although the way in which managers manage will vary slightly from individual to individual, their styles can be catagorised under three headings: autocratic, democratic and paternlisitic.

Autocratic managers

Autocratic managers are authoritarian: they tell employees what to do and do not listen much to what workers themselves have to say. Autocratic managers tend to use one-way, top-down communication. They give orders to workers and do not want feedback.

Approach to staff - Orders must be obeyed.

Approch to staff remuneration- Payment by results, eg. piece rate.

Approach to HR management - Recruitment and training based on skills; appraisal linked to pay.

Democratic managers

Democratic managers, by comparison, like to involve their workers in decisions. They tend to listen to employees' ideas and ensure people contribute to the discussion. Communication by democratic managers tend to be two-way. Bosses put forward an idea and employees give their opinion. A democratic leader will regularly delegate decision-making power to junior staff.

The delegation of authority, which is at the heart of democratic leadership, can be approached in one of two main ways: management by objectives and laissez faire.

Approach to staff: Delegation of authority.

Approach to staff remuneration: Salary, perhaps plus employee shareholding.

Approach to HR management: Recruitment and training based on attitudes and teamwork.

Management by objectives: In this situation the leader agrees clear goals with staff, provides the necessary resources, and allows day-to-day decisions to be made by junior staff. These goals will be SMART. As a consequence, junior staff know that their efforts will be monitered against specific targets, such as: 'cut factory wastage costs per unit by 5% within the next 18 months'.

Laissez-faire: Occurs when leaders are so busy, or lazy, that they don't take the time to ensure that junior staff know what to do or how to do it. Some people may respond well to the freedom to decide how to spend their working lives; others may become frustrated. 

Paternalistic leaders

A paternalistic leader thinks and acts like a father. They try to do what is best for their staff. There may be consultation to find out the views of the empoyees but final decisions are made by the leader, as the 'head' of the family. This type of boss believes employees need direction but thinks it is important that they are supported and cared for properly. Paternalists are interested in the security and social needs of the staff.

Approach to staff: Consultation with staff.

Apprach to staff remuneration: Salary with extensive fringe benefits.

Approach to HR management: Emphasis on training and appraisal for personal development.

6.3 Blake's Grid

Between 1958 and 1960, Robert Blake and Jane Mouton developed a grid for analysing styles of leadership. The Blake Mouton Grid looks at two leadership behaviours: 'concern for people' and 'concern for performance'. It then grades people on each of these two…

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