Management Styles Affect an Organizations' Thesis

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The coercive style: decisions are made top-down with little emphasis on individual ideas; it is best used in situations of crisis, but in the long run, it negatively affects the employees' morale levels

The authoritative style: sets clear goals and directions; rewards based on performances; individuality; it is stimulating for the dedicated employees; does not work if the manager is too demanding or when the employees work in teams

The affiliative style: based on the creation of a pleasant working environment; may lack control and stimulation; high performances only in a compact and hard working group, sharing common goals

The democratic style: employees' ideas are listened to; team work and participation are encouraged; could create a pleasant environment, but may lack control and direction

The pacesetting style: rapid pace of work, high expectations and performance-based rewards; might stifle creativity and generate a tense environment

The coaching style: based on roles and responsibilities; delegates and sets long-term goals; implements change and may be reluctantly accepted by the employees.

The previous pages have demonstrated that the managerial style directly impacts the organizational performance in terms of employees' motivation and morale and that the participative leadership styles are preferred in the detriment of more autocratic managerial approaches. Taking one step further, V.S.R. Vijayakumar (2007) points out that the performance is also influenced by the way in which the employees perceive the managerial style. "Conceptually, the results imply that organizational climate a key contributing factor for organizational performance, is influenced by the way employees perceive the style with which the management directs and coordinates work activities and their inclinations for accepting diversity and orientation towards individual or team work. If employees perceive the style of management as command and control, [..

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.] then the climate perceptions are negative [...]. On the other hand, if the style is perceived as empowering and support [...] then positive perceptions of organizational climate emerge" (Vijayakumar, 2007). The favorable climate and perceptions positively influence overall organizational performance.

Accepting then the idea that the participative managerial style is more appropriate for registering high levels of corporate performance, the next question that is being posed refers to the levels of actual participation. M. Jamshidian and M. Rahnama (2004) found that these levels are not consistent, generating then the conclusion that the performance of an organization is not only impacted by the managerial style adopted, but also by the characteristics of implementing the particular style, the personal features of the managers or the collective and individual responses from the employees.

3. Conclusions

All the studied sources agree that the implemented style of management has an impact upon the overall organizational performances. In further addressing the matter however, the scholars and practitioners have looked at the issues through various indicators of performance. Some analyzed performance in light of output, budget constraints, stakeholder relations, agency costs relative to the overall goals or organizational effectiveness. The majority of the academicians have nevertheless concluded that the impact of the managerial style upon corporate performance is best revealed through the lenses of the working environment and the human resource strategies (i.e. motivation or training).

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