A management style is summary of specific behaviors exhibited by managers. There are hundreds of theoretical models describing what makes a good manager or leader, typically based on personality or temperament traits such as directness, empathy, flexibility, and agility.
Some management styles are better suited than others for certain scenarios and business types. There’s no ‘one size fits all’ leadership style when it comes to management.
Here are the best management styles for small business owners:
This article is an edit of the original first published by Fit Small Business
1. Strategic Management Style
Strategic managers focus on the big picture, the long term, in terms of the vision of the company and the brand. They not only communicate that vision, but actively seek feedback on the steps necessary to get there. They involve managers, staff, and customers into their planning process and gain buy-in from them.
Strategic managers are typically ‘hands-off’ once they have transferred the vision to those who will execute it. They are the opposite of micro-managers because once they determine and communicate a vision, they tend to trust their employees’ progress toward those goals.
Pros and Cons of Strategic Management Style
- A benefit of this style is that it communicates well and helps employees buy into the company’s vision, brand, and direction. Employees are motivated to jump on board.
- A downside of this style is that it sometimes fails to focus on the details, such as implementing systems to measure progress toward goals.
How To Know If Strategic Management Style Is Right For You
Many entrepreneurs are naturally strategic. If you were bureaucratic, you’d likely never have opened a business and subjected yourself to so many ‘unknowns’. Most businesses benefit by having at least one strategic leader, often the owner at the helm. If you are visionary, can see opportunity and can create a road map to get there, then this leadership style might be best for you. But, in addition, you’ve got to be good at communicating and listening to others who can help – customers, marketers, advisers.
You have to be excellent at not only sharing your vision but delegating, because the enthusiasm your employees feel about what they do will be undermined if you start micromanaging how they do it.
2. Servant Management Style
Servant management style, or servant leadership, is a management style rooted in spirituality, with the business leader being one who serves not only their customers, but their employees. Managers who use this style care for employees on a personal level.
A servant leader demonstrates by their behavior that her employees are her most important assets, and puts them first, knowing that if she satisfies their needs, the customer needs will also be satisfied, and the business will thrive.
Pros and Cons of Servant Management Style
- A benefit of this style is that employees and customers will feel heard and their needs will be met
- A downside of this style is that unscrupulous employees may take advantage of you
How To Know If Servant Management Style Is Right For You
This style works well in businesses that focus on service where you want all employees to follow your service example when working with clients. It also works well in non-profits, where all employees are focused on a common good — such as feeding the hungry or advocating for seniors.
If you are a naturally empathetic person, a good listener, focused on the physical and emotional wellness of your employees, this might be the best leadership style for you.
3. Transformational Management Style
Transformational management focuses on leading transitions, adopting innovation, and getting ahead of the curve.
Managers with this style are aware that no matter how well they plan, things will change, and they not only expect those changes, but lead their organization through them, up to and including modifying their business model if need be.
Pros and Cons of Transformational Management Style
- A benefit of this style is that it’s futuristic, willing to adapt, and innovative – likely to remain relevant even as the industry changes.
- A downside of this style is that the status quo and institutional wisdom have value, and some employees may not want to adapt — they may jump ship if too much change happens too fast.
How To Know If Transformational Management Style Is Right For You
If you like new ideas, are a fan of innovation and are often on the cutting edge of your industry, this management style might suit you. It works well in startups where rapid change is occurring.
4. Lead by Example Management Style
Leading by example is a management style employed by many successful small business owners and department heads when bringing new employees on board or developing employees for future leadership roles. The focus is on modeling the behavior you want your employees to adopt by ‘being the example’ yourself.
Pros and Cons of Lead by Example Management Style
- A benefit of this style is that it’s easy. You get to be yourself.
- A downside of this style is that mistakes and missteps you make will be repeated by your employees. You must make sure your work ethics are demonstrated in your business and that you don’t behave in ways you don’t want your employees to copy.
How To Know If Lead by Example Management Style Is Right For You
If you have the temperament, skills, experience and abilities that you want your employees to learn from, then this style is for you. It allows you to demonstrate, as a coach or trainer would, how best to perform work tasks. It can work in any business where your employees are not necessarily experts themselves and need your example.
Even if you employ subject matter experts, your personal style might motivate them to be more friendly, empathetic, patient, or customer focused — or demonstrate any other behavior you’d like to see become a part of your organizational culture.
5. Collaborative Management Style
Collaborative management style is based on the philosophy that two heads are better than one. Managers using this style share ideas and problems, and encourage employees to participate regardless of their level or job title — by sharing thoughts, concerns, suggestions and solutions — to help the business grow.
Using this style, a leader retains decision-making authority, but gives much more weight and credit to the opinions and ideas of others.
Pros and Cons of Collaborative Management Style
- A benefit of this style is that it makes employees feel like ‘part of’ the business and encourages them to contribute their best ideas and their best selves at work
- A downside of this style is not all employee ideas are good, and you have to be a master at facilitation to prevent hurt feelings when you choose to go a different route
How To Know If Collaborative Management Style Is Right For You
If you are in a highly creative industry this style might work best to encourage employees to contribute their enthusiasm, passion, and ideas to the business.
In addition, this style is great if you’ve hired industry experts to work for you, such as in many technology-based industries, where you need ‘all brains’ to contribute to your business success and everyone in the business is equally qualified to participate.
6. Authentic Management Style
Authentic management style allows people in your organization to be themselves, whether it be by demonstrating awesome skills or a having a quirky personality. When the leader behaves in an authentic manner, not ‘acting’ like a manager but being a ‘real’ person, it allows employees to relax and be themselves too.
Pros and Cons of an Authentic Management Style
- A benefit of this style is its openness; everyone is aware of and appreciates what others bring to the table.
- A downside of this style is it may not mesh with your employees who are uncomfortable with candor, or prefer to have a bit of separation between their private and work lives.
How To Know If Authentic Management Style Is Right For You
This style is excellent for those who consider themselves extroverts, open, and honest. If you love people and enjoy talking to them, learning about them, and bringing out the best in them, this might be your management style. It’s less focused on bottom line metrics and more focused on identifying gifts and talents in your team.