Management Styles

Question 1

5 different styles in order of most control to least control

Answer 1

Autocratic
Persuasive
Consultative
Participative
Laissez-faire

Question 2

Autocratic

Answer 2

An autocratic management style is one where the manager tends to make all the decisions, dictating work methods, limiting employee knowledge about what needs to be done in the next step to be performed, and frequently checking on employee performance. The autocratic manager generally provides clear directives by telling employees what to do, without listening to or permitting any employee input.

Question 3

2 advantages autocratic

Answer 3

• Directions and procedures are clearly defined; there is little uncertainty.
• Employees’ roles and expectations are set out plainly, so management can monitor their performance.

Question 4

2 disadvantages autocratic

Answer 4

• No employee input is allowed, so ideas are not encouraged or shared. This meansemployees do not get the chance to develop their skills, and they do not feel valued.
• When no responsibility is given to lower level staff, job satisfaction decreases.This impacts on issues such as absenteeism and staff turnover.

Question 5

When does autocratic work

Answer 5

The autocratic style of management can be effective in a time of crisis, when immediate compliance with rules or procedures is needed, or in meeting an unexpected deadline, when speed is important. This approach is also effective when team members do not know each other well or when individuals lack skills and knowledge. A frontline manager, for example, might adopt this style when supervising new employees. It is generally accepted, however, that this style does not encourage the best performance from employees.

Question 6

Persuasive

Answer 6

The persuasive management style is one where the manager attempts to convince employees that management’s way is the right way. Authority and control are centralised with senior management, but managers attempt to make employees accept the objectives of the organisation and work to certain plans and procedures. Communication is one-way, and workers are not given the opportunity to share ideas or provide feedback.

Question 7

2 advantages persuasive

Answer 7

• Managers can gain some trust and support through persuasion.
• Workers believing that their feelings are being considered mayapproach tasks, and the organisation as a whole, more positively.

Question 8

2 disadvantages persuasive

Answer 8

• Attitudes and trust remain negative. Employees fail to give full support to management.
• Communication is still poor and limited to a top-to-bottom, one-way system.

Question 9

When does persuasive work

Answer 9

Same as autocratic

Question 10

Consultative

Answer 10

A consultative management style is one where the manager recognises the importance of good personal relationships among employees and consults with staff on certain issues before making a decision. This implies a two-way communication process, with employees sharing their ideas with a manager who is willing to listen.

Question 11

2 advantages consultative

Answer 11

• Asking for suggestions from employees allows for a greater variety of ideas, and should improve the quality of management decisions.
• Employees begin to have some ownership in the way in which the organisation is run, so they take more of an interest in it. This is reflected in their levels of motivation and commitment, which increase substantially.

Question 12

2 disadvantages consultative

Answer 12

• The time taken to consult all the relevant employees can slow the entire process.
• Some issues to be decided are simply not suitable for a widespread consultation process. If the process is not consistent with each decision made, staff can become uncertain and confused about their role.

Question 13

When does consultative work

Answer 13

This management style is most effective when a new operating procedure is to be introduced or some organisational change implemented. It provides an opportunity for employees to have some input at the time of decision making.

Question 14

Participative

Answer 14

A participative management style is one where the manager not only consults with employees, but also gives them some responsibility in the management of the process. In this sense, the manager shares the decision-making authority with subordinates.

Question 15

2 advantages participative

Answer 15

• Communication is a two-way process.
• Employer/employee relations are positive and there is reducedlikelihood of industrial disputes. Employees are more likely to accept management decisions.

Question 16

2 disadvantages participative

Answer 16

• Reaching decisions and introducing tasks can be time consumingwhen differing views have to be considered. The quality of decisions may also suffer because compromises are made rather than decisive, clear directions given.
• The role of management, and the control of the manager, may be weakened and undermined, with employees given too much power in some cases.

Question 17

When does participative work

Answer 17

This participative management style is most effective when an organisation is operating in an environment undergoing rapid change. Individual employees accept responsibility for, and can implement changes. This makes the organisation more responsive to change. Activities such as brainstorming generate a range of opinions and ideas, and these may lead to better decisions being made.

Question 18

Laisezz-faire

Answer 18

A laissez-faire management style is one where employees are responsible for workplace operations. Management has no central role and power.

Question 19

2 advantages laissez-faire

Answer 19

• Employees feel a sense of ownership, which can promote outstanding results.
• There is continual encouragement for creativity, which is conducive to a dynamic working environment.

Question 20

2 disadvantages laissez-faire

Answer 20

• There is a complete loss of control by management. No control or direction means there is potential for misuse of the organisation’s resources, including time and money, because these have been placed in the hands of the employees.
• This style can breed personal conflicts, where individuals do not cooperate or wish to implement only their own ideas. In these cases, management is not there to direct or negotiate.

Question 21

When does laissez-faire work

Answer 21

The laissez-faire management style is most effective for creative work or research, with employees who are highly talented or quali ed in the tasks to be performed and where minimal supervision and direction is required.

Question 22

Contingency management theory

Answer 22

There is no one best style, except the one chosen appropriately and which contributes to the organisation achieving its objectives.

Question 23

Management style

Answer 23

A manager’s style is essentially their way of doing things, their behaviour and attitude. Management styles can be placed on a continuum, with the autocratic manager at one end and the laissez-faire manager at the other.

Question 24

Premium Meals on Demand is a newly established large-scale organisation. The organisation offers healthy prepacked meals delivered to customers’ homes. The organisation has expanded rapidly and has three factories where meals are cooked and packed. Orders must be placed at least 24 hours before delivery. Simon Smithers is the Operations Manager and has found that as demand for meals has increased, a number of issues have arisen. There has been a failure to deliver some orders on time, while a number of employees have complained about the lack of some ingredients and reported difficulties in meeting deadlines. Simon is worried about these emerging issues.

Identify and secure two features of a management style Simon Smithers could use as he investigates the issues that have arisen at premium meals on demand. Justify the chosen styles use.

Answer 24

Simon should use an autocratic style of management. This is where the managers make decisions by themselves and tell employees what the decisions are and what is required from them. One characteristic of this style is that it has one communication as employees don’t get a chance to respond to the orders and try aNd change them. Another characteristic is centralised decision making, all decisions are made by managers with no employee input. This style is recommended for Simon as he is in a time of crisis and needs to do something about the issue quickly. An autocratic style allows for quick implementation of changes as they can be made without employee input, this would allow Simon to make changes which will hopefully fix the problems and communicate these changes to employees and let them know what is required from them.

Question 25

Discuss one management style the human resource manager at Prestige Motors could adopt to overcome staff resistance to moving interstate or overseas.

Answer 25

A management style that could be used by the HR manager at Prestige Motors to overcome staff resistance when moving interstate or overseas is the consultative style. This style has two way communication has managers consult with employees before making decisions and employees are able to ask questions and give feedback. It also has centralised decision making as managers still make the decisions themselves after they have consulted with staff.

The advantages of using this style is that employees will feel more comfortable with the expansion process as they have had a chance to meet with managers and ask questions, this means that the employees will better understand the expansion process and thus morale will remain high as they know exactly what is happening. A disadvantage of this style is that it can be a very time consuming process to consult with multiple employees and it may not be suitable to consult all employees and the employees who are not consulted might feel unvalued which could decrease their motivation and satisfaction.

Question 26

Describe three features of the management style used by the CEO to inform shareholders of the new policy.

‘This decision was made at board level and is our response to growing concern over climate change and environmental damage.’

Answer 26

The CEO is using a persuasive management style. One feature of this style is its one way communication as managers only communicate to employees to tell them what decisions have been made and why. There is no chance for employee input.

Another feature is the centralised decision making where decisions are made independently by managers. Employees don’t participate in the decision making process.

Another feature is the extra information given. In a persuasive style, while the managers still make the decisions by themselves and tell employees what to do, they also explain why the decisions were made. This is done to gain support as employees who understand the reasoning behind the decision will be more accepting of the decisions.

Question 27

Describe the impact of the decision to use a percentage of the profits to regenerate the environment on one other stakeholder.

Answer 27

This decision will have an effect on the shareholders. The shareholders are a stakeholder as they want low costs and high revenue to get a high return on investment. The decision to use profits to regenerate the environment will have a negative effect on the shareholders. This is because more profit is going to the environment which means less profit is going to shareholders in dividends. However if the decision results in an increase in customers and more sales the dividends to shareholders might remain the same.

Question 28

Mr Ross is the manager of a building and contraction company who had recently notified staff their work hours will be reduced as a result of the installation of new operations technology to increase productivity. On inspection, he found that many workers did not know how to operate the new machinery and a week later they had gone on strike. The issue has been referred to an employment relations authority in order to solve the industrial dispute.

Identify and describe two management styles and justify which would be most effective for Mr Ross to use in the introduction of the new operations technology.

Answer 28

One management style is the autocratic style. An autocratic management style is one where management tends to make all the decisions and dictate all the work. Communication is one way and used to inform employees of the decision and what is required from them. There is also centralised decision making as management makes decisions independently with no employee input.

Another style is the consultative style. A consultative management style is one where the managers consult with staff on certain issues before making a decision. This implies a two-way communi- cation process, with employees sharing their ideas with a manager who is willing to listen. The style still has centralised decision making as management still make the final decision independently.

The consultative style would be best as there is an issue with employee needs. The consultative style would ensure that managers consult with employees and learn about their needs so that they can offer them what they desire to work them productively. It is also less time consuming than the participative style so the crisis situation would be fixed at a fairly quick pace as managers will learn what their employees desire and be able to simple,ment it.

Question 29

A food company, Tunandrice, is a large-scale organisation that produces and sells small, microwavable packages of tuna, rice and vegetable. The organisation was established in the 1970s, but only recently released a new product- a new flavour of meal that includes a curry sauce. However, new studies have shown that a particular ingredient used in the sauce of the new product is potentially (fatally) harmful after consumption. The C.E.O. of the company- Mrs. Rice- decides, therefore, that the product must be recalled immediately.

Explain why a laissez-faire management style would not be appropriate for this situation.

Answer 29

As a product needs to be recalled due to potentially harmful consequences, a management style with quick decision making needs to be employed.

A laissez-faire management style would be inappropriate for the situation as it leaves the majority of decision making and running of the business operations to the employees, thus decision making is often a long process.

Question 30

A food company, Tunandrice, is a large-scale organisation that produces and sells small, microwavable packages of tuna, rice and vegetable. The organisation was established in the 1970s, but only recently released a new product- a new flavour of meal that includes a curry sauce. However, new studies have shown that a particular ingredient used in the sauce of the new product is potentially (fatally) harmful after consumption. The C.E.O. of the company- Mrs. Rice- decides, therefore, that the product must be recalled immediately.

Justify a style that should be utilised.

Answer 30

Mrs. Rice should use an autocratic management style, whereby there is little delegated authority, and community is one-way (downward). This management style would be the most appropriate for Mrs. Rice and her company, as decisions regarding the food recall need to be made quickly and efficiently. There is a focus on the completion of tasks, and the clear division of roles and expectations, which makes the autocratic management style suitable for an emergency situation. The autocratic management style is an example of centralised decision making, as it is clearly hierarchical and is held by senior management.

Question 31

A food company, Tunandrice, is a large-scale organisation that produces and sells small, microwavable packages of tuna, rice and vegetable. The organisation was established in the 1970s, but only recently released a new product- a new flavour of meal that includes a curry sauce. However, new studies have shown that a particular ingredient used in the sauce of the new product is potentially (fatally) harmful after consumption. The C.E.O. of the company- Mrs. Rice- decides, therefore, that the product must be recalled immediately.

Outline leading, explain why MRs Rice would need to be adequate in this role.

Answer 31

Leading refers to one’s ability to get others to willingly follow. Mrs. Rice needs to be a good leader, as an emergency situation such as the food recall at Tunandrice depends on clear communication and division of responsibilities from senior management. If Mrs. Rice is not an effective leader, she is unlikely to be able to get others to willingly follow, which may result in negative consequences for her organisation (such as the potentially harmful product not being recalled in time).

Question 32

A food company, Tunandrice, is a large-scale organisation that produces and sells small, microwavable packages of tuna, rice and vegetable. The organisation was established in the 1970s, but only recently released a new product- a new flavour of meal that includes a curry sauce. However, new studies have shown that a particular ingredient used in the sauce of the new product is potentially (fatally) harmful after consumption. The C.E.O. of the company- Mrs. Rice- decides, therefore, that the product must be recalled immediately.

Name two management skills that could be used in this situation.

Answer 32

She cold make use of problem solving skills. This involves coming up with a range of alternatives that could be used to fix the issue and choosing the best alternative that will assist the business most efficiently and effectively. Mrs. Rice needs to make the most suitable decisions which are likely to lead to the best outcome for her and her organisation.

She could also make use of communication skills. This refers to the transfer of information between a sender and a receiver. Mrs. Rice needs to be clear in what she wants from others in order to ensure maximum possible productivity)

Question 33

A food company, Tunandrice, is a large-scale organisation that produces and sells small, microwavable packages of tuna, rice and vegetable. The organisation was established in the 1970s, but only recently released a new product- a new flavour of meal that includes a curry sauce. However, new studies have shown that a particular ingredient used in the sauce of the new product is potentially (fatally) harmful after consumption. The C.E.O. of the company- Mrs. Rice- decides, therefore, that the product must be recalled immediately.

Explain how recalling potentially harmful products is ethical or socially responsible. v

Answer 33

Tunandrice have an ethical and social responsibility to operate in a manner which is lawful, which does not bring about harm to its employees or customers, which adopts fair and responsible policies, which aims to improve the community, which does not attempt to unduly exploit any individual or group, and which is not morally questionable.
Mrs. Rice’s decision to immediately recall a new product which she has just been told is potentially harmful adheres to Tunandrice’s ethical and social responsibility, as it shows that the organisation is doing all they can to suitably protect their customers in an ethical manner.

Question 34

A food company, Tunandrice, is a large-scale organisation that produces and sells small, microwavable packages of tuna, rice and vegetable. The organisation was established in the 1970s, but only recently released a new product- a new flavour of meal that includes a curry sauce. However, new studies have shown that a particular ingredient used in the sauce of the new product is potentially (fatally) harmful after consumption. The C.E.O. of the company- Mrs. Rice- decides, therefore, that the product must be recalled immediately.

Identify and justify a layout that could be used.

Answer 34

A product layout would be suitable for the new branch of Tunandrice. Product layouts usually involve automation, which is used for a single purpose along a production flow line. As the product progresses along the line in a continuous flow, this layout is suitable for mass production of a product.
Products of Tunandrice – “small, microwavable packages of tuna, rice and vegetables” – are unlikely to need a lot of customisation. As such, a conveyor belt could be an effective method of producing a lot of similar products in a continuous flow.
A product layout, due to its utilisation of automation, is also likely to a) produce consistently high quality products, and b) do so in a cost-effective manner, which is important for a large-scale organisation.