This File is about different management styles used in the business industry.

1. Different Management Styles
A successful businessman uses different combinations of management styles to run the business
effectively. Different business situations need to be managed in different manner depending
upon the type and background of an organization.
There are following management styles which are commonly used in this advanced phase of
market.
1 AUTOCRATIC MANAGEMENT STYLE - Autocratic management style does not
allow the team members to involve in the process of decision-making in a company. It is only
done by the manager or leader.
Merits of autocratic management style
· It helps in keeping an organization’s personal information confidential.
· It is less time consuming because decisions are made by a single person.
Demerits of autocratic management style
· It can lead to a disastrous situation for a company if the leader is not a good decision-maker.
· Employees don’t feel any kind of involvement with the company.
2 CONSULTATIVE MANAGEMENT STYLE – In this management style, the leader
consults with the employees and involves them in the process of decision making but makes the
decisions independently.
Merits of consultative management style
· New idea and thoughts get encouragement.
· Different ideas can be generated through different minds which creates various solutions for a
problem.
Demerits of consultative management style
· Sometimes, company’s confidential information gets leaked.
· Very time consuming because an optimum solution needs to be chosen by the leader among all
the solutions given by the employees.

2. 3 PERSUASIVE MANAGEMENT STYLE – In this management style, the final decisions
are made by the leader or manager but during decision- making, he convinces (persuades) the
employees that the decisions are being taken for their benefits and welfare.
Merits of persuasive management style
· Helps the employees to understand that company is not going to ditch them.
· Develops a higher level of trust between employees and administration.
Demerits of persuasive management style
· The process is very time consuming.
· Employees feedback are not considered, which created disputes between employees and leader.
4 DEMOCRATIC MANAGEMENT STYLE – As the name suggests, in this management
style employees are provided with the opportunity to involve in the decision-making process and
the final decision is based on the majority. In this type of management style, communication
takes place in both upward and downward direction of the company hierarchy.
Merits of democratic management style
· This style proved to be helpful when some complicated and critical decisions need to be taken.
· It creates a sense of engagement in employees with the company.
Demerits of democratic management style
· Throws a negative impact in the minds of minority.
· This style is quite inefficient.
5 LAISSEZ-FAIRE MANAGEMENT STYLE - This management style is completely
opposite to the autocratic management style. Here, employees are free to make decisions on their
own and the leaders guide them in making the right decision.
Merits of Laissez-faire management style
· Brings familiarity within the employees with the management.
· Employees feel free to apply innovative ideas for a better productivity and growth of the
company.
Demerits of Laissez-faire management style
· Sometimes, management loses control over employees due to their over-involvement in the
company affairs.
· Puts a negative impact on the employees in minority.
Author: Jamie Rsau
Date: 06 September 2019