The management styles of business owners vary greatly according to the personality, experience and skills of each individual. There’s not necessarily a right or wrong way to manage people as long as it works for your business.
Business Coaching Insight:
It's often true that ‘people join a company but leave a manager’
However, having said that, managing people is a source of difficulty for many small (and even large) businesses and it is something that a good coach can really help with.
Many a small business owner has thrown their arms up in dismay and vowed to go back to being a one-man-band.
It can be a frustrating process learning how to recruit, retain and reward employees as well as getting them to come together as an effective team. There are a lot of lessons to be learned but it's critical to get right because your employees are your most important asset and you can't grow very far without them.
1. Autocratic - where the manager makes all the decisions alone
2. Democratic - where the manager involves employees in decisions
There are pro's and con's to each of these styles. Autocratic management styles, where the boss controls everything, tend to create a culture of dependence which is hopeless for business owners. Businesses can come to a grinding halt when the 'controlling' boss leaves town for a few days.
Not only does this style of management create dependence on the boss to make decisions, it also results in lower job satisfaction because there's less communication and employees feel less engaged.
Business owners are often better served by more democratic management styles that promote proactivity, responsibility and individual leadership.
This creates a happier and more independent team that's able to prosper even in your absence.
Taking on more employees often seems like a lot of hassle for business owners - you can take on more work but you also inherit staffing issues along with it. But being a manager is a necessary part of expanding your business.
Entrepreneurs may be used to leveraging finance but it's also a concept that applies to your team
These 5 specific skills are the basic building blocks for becoming a good manager.
Business owners have to wear several hats including the two most important, those of manager and leader. Understanding the difference between the two can help you understand what tasks need to be done.
All business owners experience having to manage difficult employees at some point.Remote Employees: Tips for Managing From a Distance
Hiring freelancers, contractors and home-based employees is a great way to make cost savings but management styles may need adjusting.
There are many pro's and con's to consider when deciding whether to hire freelancers or employees.
Employees often need a 'sense of progression' to feel motivated and formalizing appraisals is one way to get this need met
Even if you don't have a huge budget to invest in staff training, it is still important to have a structure in place for developing staff.
The not so pretty side of owning a business is that at some point you will probably have to fire somebody