Help

[PolySquared]

Hi guys,

I have two questions that I would appreciate if you answered.

1. What are ideal scenarios/businesses for each management style

2. What is an example of conflicting stakeholder interests, other than employee and shareholder expectations?

Thank you

[Globe]

Hey!

For your first question, the examples are kind of endless. An autocratic management style works best if the employees are relatively in-experienced and therefore do not have the ability to be involved in making decisions relating to the firm. As you work through the management styles, you'll find that the more experienced and capable employees are, the more responsibility they are given in terms of decision-making. Hence employees who are highly skilled in their area of expertise are typically managed under the laissez-faire management style. Of course there are other factors to this too, but this is just a simple explanation.

A good example of conflicting stakeholder interests would be customers and management. Customers want cheaper and more affordable prices, whilst management is concerned about making a profit. If the prices are indeed lowered to satisfy the customers, then the business will of course be making less profit - or they would be required to sell more products to achieve the same profit they would have been achieving prior to lowering their prices, which also brings extra costs. Of course, this works the same way in reverse, as if management maintains their current prices, when customers are pushing for cheaper more affordable prices, this can also cause a conflict.

[PolySquared]

Hey!

For your first question, the examples are kind of endless. An autocratic management style works best if the employees are relatively in-experienced and therefore do not have the ability to be involved in making decisions relating to the firm. As you work through the management styles, you'll find that the more experienced and capable employees are, the more responsibility they are given in terms of decision-making. Hence employees who are highly skilled in their area of expertise are typically managed under the laissez-faire management style. Of course there are other factors to this too, but this is just a simple explanation.

A good example of conflicting stakeholder interests would be customers and management. Customers want cheaper and more affordable prices, whilst management is concerned about making a profit. If the prices are indeed lowered to satisfy the customers, then the business will of course be making less profit - or they would be required to sell more products to achieve the same profit they would have been achieving prior to lowering their prices, which also brings extra costs. Of course, this works the same way in reverse, as if management maintains their current prices, when customers are pushing for cheaper more affordable prices, this can also cause a conflict.

Thank you for your response! For the first question, I was asking what type of businesses are ideal for each management style (eg. laissez faire for a scientific setting where research scientists conduct individual studies with little or no interference from management).