Business – 2.3 Management – Management and managers | e-Consult
2.3 Management – Management and managers (1 questions)
Login to see all questions.
Click on a question to view the answer
The decision‑making style adopted by a manager influences how employees feel about their work and can affect productivity, innovation and profitability. The table below summarises the main effects of each style.
| Style | Impact on Motivation | Typical Business Performance Outcomes |
| Autocratic | May reduce intrinsic motivation; employees feel less valued and may comply only to avoid conflict. | Quick decisions can be advantageous in crises, but long‑term performance may suffer due to low morale and high turnover. |
| Democratic | Boosts engagement and ownership; employees are more likely to contribute ideas and feel satisfied. | Often leads to higher innovation and productivity, though decision speed can be slower. |
| Laissez‑faire | Can increase autonomy for self‑motivated staff but may cause confusion or lack of direction for others. | Performance varies: high for skilled teams, low for those needing guidance; risk of inconsistent results. |
Overall, a balanced approach—using autocratic style for urgent decisions, democratic style to foster motivation, and laissez‑faire where expertise exists—tends to maximise both employee satisfaction and business performance.