Management Style influence Organizational Performance

 

Management Style influence Organizational Performance

 

Management styles play a pivotal role in shaping an organization performance. It has a significant impact on employee morale, productivity and organization success.

Management style is methods of leadership for planning, organizing, directing, influencing, leading and facilitating to organizational performances. Management styles varies company to company, level of management and person to person. A good managers can adjust their management style to suit different environments and employees.

 

Management Theories and Impact to the Performance

Management theories are a collection of ideas that recommend general rules for how to manage an organization. These addresses how managers implement the strategies to accomplish organizational goals and how to motivate employees to perform at their full potential. Managers can apply different management theories which suit to their company culture and employees which lead to achieve business targets.

These theories help in different ways such as increase the productivity, encourage teamwork, increase collaboration, provide strategies to speed up the decision-making process etc.

 

Different Leadership Styles

Democratic Management Style

Democracy requires the managers to involve everyone in the decision-making process. It’s a shared leadership, where leaders trust their team to contribute to decision making process and come out with solutions. Here manager’s role is not to take decisions, but to facilitate in the decision-making process. Decisions will be taken with majority vote.

Democratic leadership involves actively seeking input and involvement from employees’ decision-making process (Galston, 2018). It suits for problem context as it promotes a culture of innovation, encourages employees to contribute ideas and fosters adaptability by involving various perspectives in decision making.

In this context, employees encourage to share their insights and challenge when taking the strategic decisions. Management promotes collaboration and open communication among the team and encourages creativity which will leads to employees' job satisfaction, morale and productivity.

However, decision making is slow as everyone in the organization involve in this process and different opinions and suggestions will come up. On the other hand, managers cannot take the best decision because a decision will be taken by the majority vote and sometimes it will favor of the employee welfare and less contribution to the work. This deleterious to the organization performance.

 Autocratic Management Style

It’s a management style where leaders have absolute authority and control to make decisions and supervises their subordinates with minimum or no input from other. The manager is the sole decision-making body. Autocratic leadership works best that require immediate decision making, tasks with completion of deadlines and error free performances. This style is best to use in time sensitive tasks and working with inexperienced staff.

Decisions are reflecting the manager’s personality as well as his knowledge, skills and attitudes. However, it has no room for creativity, team development and relationship building which will impact to the performance level of individual as well as the organization.

Goal Setting Theory

This theory is based on the idea that setting SMART goals which is more effective than setting unclear goals. It’s sometimes called as goal setting theory of motivation. It describes that goals should be clear, specific and challenging and specific goals inspire a higher level of performance than easy goals. The main purpose of this theory is to connect the goal setting process to influence work motivation and performance. This ensures goal setting process up their employees.

In this concept effective goal setting should have following components.

1.      Clarity: When setting goal, it has to be clear and specific goals.

 2.      Challenge: When goal attainment presents a challenge, this leads to a higher level of performance. In other words, difficult goals are more effective.

 3.      Commitment: Employees need to have certain level of commitment to hit the goals

 4.     Feedback: In order to hit the goals by the employees, they need regular feedback which direct them to achieve targets.

 5.    Task Complexity: It has to break one lager goal to smaller task. After completion of each task, it boosts motivation.

This theory leads to benefit the company by higher level of employee engagement, higher levels of performance, and supports to feedback culture.

However if the goals are more complex and outside the employees skill set, it will negatively impact the motivation and drop of performance level. Further employees goal should be align with organizational goals. If not goal setting will not be effective.

 Transformational Leadership Theory

Transformational leadership involves setting up a vision, proving support and empowering employees. It describes how leaders can influence behavior and motivation of their employees and implementing & promoting positive change. This style encourage them to work towards long term goals. Managers will inspire followers to achieve extraordinary outcomes.

This theory provides multiple benefits which directly impact to individual and organization performance. This includes inspire motivation, intellectual stimulation by innovation, and helping employees through personal challenges. Transformational leadership style will lower employee turnover and encourage ongoing learning & development as well.

 Conclusion

Effective Managers require to enhance employee performance levels by adapting different strategies   to achieve desired level of growth which is ultimate objective of performance management. It’s clear that management style is having significant impact on enhancing employee performance by the way of employee satisfaction and motivation to enhance the organization growth and success.

 

References

1.      Debara, D. (2022). Goal-Setting Theory: Why It’s Important, and How to Use It at Work. [online] www.betterup.com. Available at: https://www.betterup.com/blog/goal-setting-theory [Accessed 13 Dec. 2023].

 

2.      Galston, W.A. (2018). Democratic Leadership. Anti-Pluralism. doi:https://doi.org/10.12987/yale/9780300228922.003.0008 [Accessed 13 Dec. 2023].

3.      ‌Kumar, A. (2023). What is Autocratic Leadership? A Comprehensive Guide for You. [online] Emeritus Online Courses. Available at: https://emeritus.org/blog/leadership-what-is-autocratic-leadership/ [Accessed 13 Dec. 2023].

 4.      Wilde, A. (2019). How Different Leadership Styles Impact Employee Performance. [online] JazzHR. Available at: https://www.jazzhr.com/blog/employee-performance/#:~:text=Evaluating%20leadership%20styles%E2%80%99%20effects%20on%20employee%20performance%201 [Accessed 13 Dec. 2023].