If you want to be successful at what you do, you have to have characteristics of both a manager and a leader. While the power of a manager comes from his or her position, the power of a leader comes from his or her influence, regardless of the position. Even though you can become a manager by simply being appointed to the position, the level of your success depends purely on you. The first thing to do is to find the management style that suits you best, or even better, to find the management style that best suits a given business situation.
There are various categorisations of management styles, and we have chosen to present you with a very interesting one, developed by Tannenbaum and Schmidt (1973). The first style in this categorisation is autocratic or directive style. An autocratic manager makes all the decisions and expects the workforce to do exactly as required. The communication goes mainly downward from the leader to the employees. The advantage is that the direction of business will be constant, and the decisions will all be similar, which means that the business is seen as stable and well-managed. The negative effects of this style are a decrease in motivation and an increase in dependence on the part of employees.
Paternalistic style is one where managers make decisions in the best interest of the people rather than the business. They focus on the social and leisure needs of their employees, enhancing motivation and loyalty. On the negative side, this management style makes people even more dependent on the manager than the autocratic style.
The most obvious characteristic of the democratic style is that employees take part in the decision-making process, which is not the case with the two above mentioned styles. Communication is extensive in both directions. Job satisfaction and quality is improved, but the decision-making process is slowed down.