April 2003 Management / Leadership Styles (updated) (Continued from
In last month's article, we added to and expanded upon the management styles
from our 1996 articles. This is a continuation of our updates to
Management by Coaching and Development
In this style, managers see themselves primarily as employee trainers.
This management style requires that both
parties participate actively in
- There must be good communication on both sides.
- The coach must be a good listener.
- Constructive feedback must be given � neither judgmental nor autocratic.
- Exploration is the main technique � rather than
instruction � because people have different approaches.
- Both parties must unlearn old "dictatorial" habits by delegating power.
- Both must have a positive view on the outcome.
Management by Consensus (MBC)
Managers construct systems to allow for the individual input of employees.
This management style has an over-emphasis on teams.
Management by consensus has advantages and there should be clear accountability at an
Key attributes of this style:
- Decision-making and
commitment to action resides at the committee level.
- Buy-in is required at
several levels � both broad and deep.
- This style often shows down the decision-making process.
Management by Consensus is often mentioned as
the style most used in Japan. It can be a powerful method for gaining
buy-in from stakeholders. It can also bring a project to a point of
paralysis if there is no method for breaking deadlocks.
Management by Exception (MBE)
Managers delegate as much responsibility and activity as possible to those below them,
stepping in only when absolutely necessary.
- A principle of management in which a management decision that cannot be made at one level is passed up to the next level for a
decision (i.e. exceptional decisions are passed up the management
- The principle used in budgetary control in which items of income or expenditure that show no variances or small variances require no action, whereas exceptional items showing adverse variances to an unacceptable degree require action to be taken.
Source: A Dictionary of Accounting, Oxford University Press � Market House Books Ltd 1999
Management by Empowerment (new)
Authorizing employees to do their work without the need to seek approval from supervisors gives a sense of responsibility and achievement to employee reduces delays in flow of work reduces work-load on manager exception reporting
Management by Executive Fiat
In essence, this is the style of dictatorship, a style that no longer
functions well in modern society. The key decision-maker has the power
to "make the call." This style results in fast decision making and
greatly simplifies the decision-making process. However, if there is any
disagreement by the people affected by the decision, this style does not
allow for discussion or revision.
Michael Maccoby (The Gamesman, Simon & Schuster 1976) used this name to describe the manager who is compulsively driven to succeed.
The goal of the "gamesman" is to rise through the hierarchy and he/she subordinates every other value and relationship to that end.
Mr. Maccoby described 4 primary personalities:
- The Craftsman � an independent perfectionist with a passion for quality and improvement.
- The Jungle Fighter � a power hungry individualist.
- The Company Man � the long term careerist, interested more in security than success.
- The Gamesman � flexible and dedicated to winning.
The gamesman is said to believe in nothing in particular, to be uninvolved emotionally and to hold nothing dear that might interfere with the next promotion.
Such people are common enough in organizations and many reach the very top.
The complaint made about them is that � having few
values � they create organizations that have few values as well.
Based on W. Edwards Deming's theories of management:
- Knowledge or theory must change when new observations refute previous knowledge or theory.
- Knowledge is the engine for instituting improvements in processes and in the organization.
- Knowledge suggests an intervention, which is consequently tested, and which in turn may become the basis of new knowledge.
- The alternative to management by knowledge is to manage by superstition or luck.
W. Edwards Deming's 14 Points for Management
- Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and provide jobs.
- Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, learn their responsibilities, and take on leadership for change.
- Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.
- End the practice of awarding business on the basis of price tag. Instead, minimize total cost.
Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
- Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
- Institute training on the job.
- Institute leadership. The aim of leadership should be to help people and machines and gadgets to do a better job.
Leadership of management is in need of overhaul, as well as leadership of production workers.
- Drive out fear, so that everyone may work effectively for the company.
- Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems in production and use that may be encountered with the product or service.
- Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity.
- Eliminate work standards (quotas) on the factory floor. Substitute leadership.
- Eliminate management by objective. Eliminate management by numbers, numerical goals.
- Remove barriers that rob the hourly worker of his right to pride of workmanship.
The responsibility of supervisors must be changed from sheer numbers to quality.
- Remove barriers that rob the hourly worker of his right to pride of workmanship.
- Institute a vigorous program of education and self-improvement.
- Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.
Managing by performance means describing what needs to be accomplished,
not how it will be
accomplished. People and their goals are the driving
force behind an organization's success. Linking the organizations'
strategic goals with the employee's goals is a critical element of an
Scorecard ( BSC) implementation.
The Management by Performance method uses these techniques:
- Compiles organizational scorecards, departmental scorecards and individual scorecards for each employee, defines the target values and provides analysis against the targets.
- Provides a direct link and allocation of defined measures to any single level of the organization.
- Its increased transparency drives a performance culture.
The Balanced Scorecard, developed by Dr. Robert Kaplan and David Norton in the early 1990s, is becoming more popular in public companies and government
sector agencies where public accountability and stewardship is increasingly important.
We get a small commission for purchases made via links to Amazon.
- The Gamesman: The New Corporate Leaders, Michael Maccoby. Simon & Schuster 1976
(hardcover); Bantam Books 1978 (paperback) ASIN: 0553230999
Related newsletter articles:
October 1996 - Glossary of Management Styles,
November 1996 - Management vs.
March 2003 - Management/Leadership
Styles (Updated Part 1)
There is nothing so useless as doing efficiently that which should not be done at all.
.. Peter Drucker
About our resource
links: We do not endorse or agree with all the beliefs in
these links. We do keep an open mind about different viewpoints and
respect the ability of our readers to decide for themselves what is useful.
If you have comments about this month's topic, please let us know or take our
newsletter survey. If you would like
to receive free notices of the new monthly topic, please sign up for our mailing
This page is http://www.itstime.com/apr2003.htm
Page updated: October 16, 2023
Institute for Management
Excellence, Copyright � 2002 All rights