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Lecture notes

Principles of Management and Leadership

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A look at the four styles of management: Authoritarian, Paternalistic, Laissez-Faire and Democratic.

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Principles of Management and Leadership

Four key styles:

1. Authoritarian.
2. Paternalistic.
3. Laissez-faire.
4. Democratic.
Authoritarian:

 Having 1 person at the top that controls everything and is in charge.
 A dictator who controls everything all the time.
 Information and communication from top down and little opportunity for feedback.
 Senior managers take decision with little or no employee involvement.
 Set objectives and allocates tasks and retains control throughout.
 This is essential at times such as crisis as you don’t have time to discuss decision making and required in low
level jobs to be told what to do.

Advantages Disadvantages
Tight control especially in terms of finance. Some Employees become very dependent and are unable to
projects require strong leadership in order to get things use their own initiative. Staff become lazy.
accomplished quickly and efficiently.
Quicker decisions as managers make it without Employees feel oppressed, under-valued and de-
consultation. motivated.
Because one individual has complete control over an Poor productivity, high absenteeism and labour
operation, there is less of a need for layers of turnover.
management. This can make for a more efficient
operation, as fewer people are involved in the decision-
making process.

Paternalistic:

 Similar to authoritarian except when the leaders make decisions they are doing it in the best interests of
their staff.
 Support employees direct them and make the final decisions.
 Dictatorial, but decisions are taken in the best interest of employees.
 Still some de-motivation as there is not enough responsibility and a culture of dependency.
 Motivation levels aren’t as low as authoritarian leadership/management.
Advantages Disadvantages
Can increase motivation- ‘someone upstairs cares’ Dependency is created.
syndrome.
Senior management still has control-> make the major No responsibility/ participation in decision making can
decisions. result in poor levels of motivation.
Staff feel valued as the decision are explained to them Slows down decision making.
and are made for the right reasons. Still quite a dictatorial or autocratic style of management.

Democratic:

 Business decisions are based on the majority view.
 Everyone gets a say -> staff are involved in decision making.
 This relies upon good communication channels so management and staff have to communicate with each
other.
 Contribution is encouraged; delegation occurs and is two-way communication.
 It works when the business is doing well, growth and the economy is doing well and the business has a
skilled workforce who can make decisions.
 This structure is flat as people have authority.
Advantages Disadvantages
Easier to implement change – consensus from staff. Conflict as personalities may clash in teams due to
differences in opinions.
Variety of opinions and ideas which leads to higher Team members may lack skills/experience.
quality outcome. As the opinions come from a wide range
of people.
Employees feel valued – high level of motivation. Slower-> speaking to different people and taking on their
POV.

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