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Autocratic management and Democratic management

Business owners who use an autocratic management style keep most of
the authority to themselves, making decisions without consulting
others. More inclined to give orders than to seek advice, they
generally adopt a take-charge approach to management. When the
situation calls for fast, decisive action, they are ready to move. The
autocratic management style works best in fast-paced, volatile
industries where there isn’t time to confer with others and in
situations where employees lack experience or motivation. The drawback
to this style is that it can generate resentment and frustration among
workers who feel that their input is being ignored. Furthermore, by
making all the decisions alone, entrepreneurs can end up limiting
their businesses growth potential by failing to develop the employee
management talent needed to run a larger operation.

A democratic management style gives employees a much greater say in
decision making. Rather than making unilateral decisions and expecting
employees to carry them out, the democratic entrepreneur encourages
employees to get involved in the process. Business owners who take a
participative approach to managing delegate authority whenever
possible but retain the final right to approval. The democratic
management style works best with employees who have strong job skills
and require only minimal supervision. Among its advantages are the
feelings of belonging, pride, and commitment it can instill in workers
and its ability to tap employees’ ideas and ingenuity for the good of
the business. The main disadvantages of this management style are the
time it takes to get employees’ input and the weakening or watering
down of decisions that can occur in reaching consensus.
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