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The Impact of Management Styles on Employee Performance

Imagine a workplace where every employee feels motivated, productive and driven to excel. Now, picture the opposite: a team plagued by low morale and poor performance. What is the difference? Often, it is the management style at play.

Avila University’s online Bachelor of Arts (B.A.) in Management program introduces students to various management styles, preparing future leaders to effectively mesh their aptitudes and personalities with the teams they manage. Understanding how approaches to leadership impact employee performance is essential for leaders, teams and organizations.

Understanding Different Management Styles

Today’s successful leaders employ a diverse array of management styles, each with its own unique approach to guiding teams and influencing employee performance:

Autocratic: This leadership style relies heavily on managerial authority, with tasks assigned and decisions made with minimal employee input. It can prove effective in emergencies or environments requiring strict protocol adherence. However, it may lead to feelings of undervaluation among staff and potentially impact employee behavior negatively if not applied judiciously.

Coaching: This approach emphasizes employee growth and development, with managers providing support and guidance to help team members reach their full potential. Coaching can build trust and loyalty within teams but requires intentional effort and time management to balance management activities with daily operational demands.

Collaborative: This style encourages open exchange of ideas within and across teams, fostering innovation and breaking down organizational silos. Managers using this approach often seek input before making decisions, empowering employees and cultivating a sense of influence. Collaborative leadership can contribute significantly to building a high-performance culture, but there are times when individual leaders need to take command.

Democratic: This approach involves the entire team in decision-making processes, although the manager typically makes the final choice. Democratic leadership promotes inclusivity and enhances employee alignment with company goals. However, it may slow decision-making and prove less effective during crises requiring quick, decisive action.

Laissez-Faire: This style grants employees significant autonomy, trusting their skills and judgment to achieve goals with minimal oversight. While it can encourage creativity and risk-taking, laissez-faire management may leave some employees feeling unsupported, particularly those accustomed to closer supervision.

Transactional: This leadership operates on a system of rewards and consequences tied to clear, predefined goals. Transactional management can boost productivity and satisfaction when objectives are achievable. However, not all employees respond well to this approach, and its rigidity may hinder organizational adaptability.

Transformational: This style inspires and motivates employees towards a shared vision, resonating particularly well with millennials due to its focus on aligned values. While effective in fostering enthusiasm and dedication, transformational leadership must be balanced to prevent burnout from prolonged periods of intense work.

Management Styles Have Far-reaching Impacts  

A manager’s leadership approach can significantly influence employee performance, job satisfaction and organizational success. Recent research from the Open Journal of Leadership shows that different management styles have varying effects on short-term productivity and long-term employee engagement. Autocratic leadership may drive immediate results in certain situations but often leads to decreased motivation over time. In contrast, democratic and collaborative approaches tend to yield positive outcomes in both short and long-term scenarios, boosting productivity and enhancing team morale.

The impact of leadership styles extends beyond productivity metrics. Transformational leadership can inspire a sense of purpose among employees, resulting in higher job satisfaction. Laissez-faire leadership can foster independence in self-motivated employees but may lead to confusion when more guidance is needed. Transactional leadership provides clear expectations, which can motivate some employees but risks creating a compliance-focused culture.

There is no universally optimal leadership style. The most effective approach depends on the specific context, employee characteristics and organizational goals. The Open Journal of Leadership study suggests that leadership is not a one-dimensional construct but a multifaceted phenomenon. It posits that effective leadership involves a combination of different styles, each applied in varying degrees depending on the situation. Leaders who understand and utilize this dimensionality are better equipped to adapt their approach to diverse team dynamics, organizational cultures and business challenges.

Tailor Your Leadership Style for Your Team

Effective leadership is not about adhering to a single management style but adapting to the unique needs of teams and organizations. The online B.A. in Management program from Avila University equips students with the skills to assess team needs, adapt to situational demands and engage in continuous improvement.

Through coursework focused on strategic planning, decision-making and collaboration, students learn to balance various leadership approaches. They explore how to articulate a compelling vision, foster growth and implement appropriate reward systems. By mastering these crucial skills, graduates have the tools to tailor their management style to maximize team performance.

Learn more about Avila University’s online Bachelor of Arts in Management program.

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