Management Style as a Strategic Tool and Its Effects on Organizational Results

Management Style as a Strategic Tool and Its Effects on Organizational Results

İlknur Taştan Boz (Trakya University, Turkey)
DOI: 10.4018/978-1-5225-7180-3.ch009

Abstract

Achieving her targets regardless of whatever sector a business has been operating depends on the way she converts various organizational outcomes into favorableness. Organizational outcomes that may affect the performance of businesses include job satisfaction, organizational commitment, corporate reputation, strategic orientation, organizational creativity, and other points. In the literature, it is seen that the management style is one of the variables that are effective for favorable or adverse organizational outcomes. There are different classifications related to management style. According to many researches, it can be said that the most commonly used classification of management styles includes democratic, participatory, laissez-faire, and autocratic. When the results of researches have been examined, it is regarded that making a generalization related to which management style can always be applied as the most appropriate one is tough.
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Introduction

The management concept is the subject of every field where the people have been present from past to present. Management can be defined as the process of making or carrying out work effectively and efficiently through others (Robbins & DeCenzo, 2008). The concept of productivity in this definition is to produce the desired output with the minimum resources (raw material, money, human) without wasting them and productivity is related with the means. It means “doing things right” and refers to the relationship between input and output. The concept of effectiveness is the degree to which the stated goals are achieved and concerns the outcomes. It means “doing the right things”. A decent administration is about both achieving the goals and making it as efficient as possible (Daft & Marcic, 2009). It is not easy to create a collective understanding even if the activities to be carried out in the enterprises are determined correctly. Management practices are often based on a complex understanding shared within the organization. Today, businesses are experiencing various changes both from the source of work and from the environment. These changes consist of shifts in competition and globalization strategies, processes initiated or restructured by organizations related to business law, business ethics, approaches in management philosophy areas, developments in information management and information technologies, start of new management techniques, differences in organizational structures, organizational behavior and human resources, labor mobility, and demographic changes. One of the ways to cope with these changes is seen as strong administrative processes. Surveys indicate that productivity, profitability, growth and life span are better in organizations with strong managerial processes. Creating a strong managerial process brings a management style that can cope with the changes both inside and outside the organization.

In terms of employees, a positive or negative attitude by the manager is perceived as a sign of corporate activity because the manager must have a say in management authorities and assessing performances. Several studies exhibit that managers can take on a different role for each factor affecting the performance of employees and improve the performance. It can be argued that because managers influence employees and their performance in organizations, it is necessary to underline their tendencies and behavioral patterns, in other words, the conscious approach to the management styles they use when managing. In terms of organizations, management style is the way a company’s management controls and manages its employees based on attitude and leadership and the employees’ perception of the corporate identity, image, and culture (Olmedo Cifuentes & Martinez Leon 2014). Managers adopt different management styles when performing their duties. While some of them show the same management style, some managers show different management styles according to the circumstances and employees. Some managers want employees to participate in decisions, while some just want them to fulfill given orders. Some managers do not decide, they seem to leave the work and the way the works is done to the employees. These approaches of the managers reveal distinctive styles. Descriptive and integrative information on the effects of distinctive styles are not adequately included in the literature. It is important to address the shortcomings mentioned, to understand the concept of management style, to determine what kind of management styles exist and to show its effects in terms of organizational results.

For this reason, the concept of management style is explained after introduction. In the section secondly, there are classifications on management styles. Moreover in this section, using previous research findings about the relationship between the management style and organizational results are found. Finally, in the last section, necessary recommendations and conclution are given

Key Terms in this Chapter

SME: It means non-subsidiary, independent firms which employ fewer than a given number of employees. This number varies across countries. The most frequent upper limit designating an SME is 250 employees, as in the European Union.

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