Management style is a unique way through which organization leaders go about accomplishing the set objectives of the business firm. Various styles of management differ from a company and are employed effectively to give the desired results. The performance and success of any business are primarily affected by the management style. This is because it lays the business structure and critical operations essential for the growth of the organization.
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John Smithers operates an automobile leasing company, implying that it is a service-based business because no direct products are involved. In a service-based organization, few clients have established their revenue and royalty with the company. Therefore, single mistakes and errors can lead to the business losing potential customers with long-term damage to its operations. When much responsibility is vested in employees, it gives them a window of opportunities to start a similar business as they have mastered the processes and functionality from the transparency (Sreih et al., 2019). This will open competition to the initial firm and rivalry that can lead to the company’s collapse. Such loosely organized business firms are influential compared to organizations with defined jobs and monitored performance.
The merits of this management style described are that employees can take care of the business organization without top leaders. There is high morale and confidence from the staff because they feel trusted, which yields high performance. The owners and management can run and focus on various ventures at the same time. Employees learn to be responsible, which makes them great stakeholders to the business as delegating to the right staff grows. This management style has a high risk of being cheated on and encourages competition from employees. There is a depreciating value of the CEO when the managers take full charge, a significant drawback of this style.
This style positively impacts employees’ morale because they are happier and able to offer high expertise services. According to Portovaras et al. (2020), employees feel confident and valued when not closely monitored and followed to take up their duties. They are highly like to perform assigned duties as part of the process and not based on the outcome. This plays a significant role in building leadership qualities in employees for a long engagement.
Working for such an organization is ideal as a young individual with minimal experience and full of dreams and energy. This is because there is a chance of getting involved in responsibility duties and decision-making that impact the company. In addition, there is an opportunity to sharpen leadership characteristics because one is directly involved in pivotal roles (Maliranta & Nurmi, 2018). Therefore, working for such a company is the optimum decision in the 21st century to develop entrepreneurship skills and acquire the necessary experience for career growth.
In conclusion, the management style used by John is effective in maintaining a high level of morale among the employees. They are entrusted and fully involved in all business operations and decisions, giving them a sense of belonging and identity. This style poses a high risk of being cheated since the staff understands the full functionality and running and operating a similar business. This management style has a high-performance return because employees can bring new and innovative ideas to solve different problems. In addition, the CEO and owner can leave the business function without the worry of breakdown in service operations.
Maliranta, M., & Nurmi, S. (2018;2019;). Business owners, employees, and firm performance. Small Business Economics, 52(1), 111-129. Web.
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Portovaras, T., Harbar, Z., Sokurenko, I., & Samoilyk, I. (2020). Management of small business entities. Independent Journal of Management & Production, 11(8), 680-694. Web.
Sreih, J. F., Lussier, R. N., & Sonfield, M. C. (2019). Differences in management styles, levels of profitability, and performance across generations, and the development of the family business success model. Journal of Organizational Change Management, 32(1), 32-50. Web.