Introduction - How British Firms Use Different Leadership Approaches
One of the main notions behind conducting this study is to show the underpinning theories and concepts related to the context of employment relationships. In order to do so the topic that has been chosen for the study is a discussion on various managerial styles and which approach is most used by the British firm. In order to further do the essay few British company examples will be used like Tesco, Ald, I, and Sainsbury from the retail sector. Overall, the study will help in gaining a deep idea of the concept of managerial style and how it helps companies in achieving their goals.
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Managerial style refers to the approach used by a manager in directing and controlling a team to achieve the set goals and objectives. It is a crucial aspect of management that influences the way a manager interacts with their team, assign tasks, makes decisions, and motivates employees. There are several managerial styles, and each style has its advantages and disadvantages. The most common styles include autocratic, democratic, laissez-faire, and transformational styles (Ghaziasgar, 2021).
The autocratic style is characterized by a high level of control and decision-making power by the manager. The manager takes a directive approach, and the team has little or no say in the decision-making process. This style is most suitable in situations that require quick decision-making, such as in emergencies or when time is of the essence. However, it can lead to low morale, decreased productivity, and high employee turnover.
The democratic style, on the other hand, is characterized by a collaborative approach to decision-making. The manager involves the team in the decision-making process and values their input. This style promotes employee engagement and motivation, leading to higher job satisfaction and productivity. However, it can be time-consuming, and the decision-making process can be slow (Namiq, 2018).
The laissez-faire style is characterized by a hands-off approach by the manager, allowing the team to make most of the decisions. The manager provides minimal guidance and oversight, allowing employees to work independently. This style can promote creativity and innovation, as employees have the freedom to explore different approaches. However, it can lead to confusion, lack of direction, and poor performance if the team lacks the necessary skills and experience.
The transformational style is characterized by a focus on inspiring and motivating employees to achieve their full potential. The manager encourages employees to be creative, take risks, and develop new skills. This style promotes a positive work environment, leading to high employee engagement and productivity. However, it can be challenging to implement, and the manager must have excellent leadership skills and communication abilities (BUCATA, 2022).
It is crucial for a manager to understand their preferred style and adapt it to different situations and team members' needs. For instance, in a crisis, an autocratic style may be more effective, while a democratic style may be more suitable for routine tasks. Overall, it can be said that managerial style plays a critical role in determining the success or failure of a team. The most effective style is one that promotes employee engagement, productivity, and job satisfaction. Managers must strive to find a balance between being too controlling and too hands-off to create a positive work environment that fosters creativity, innovation, and growth.
The link between employment relationship and managerial style
Usually, in the case of employment relationships, it has been seen that the controlling bodies in the work association are the executives, trade unions, the regime as well as EU in the case of the UK. The employment relationship between a manager and their team is closely linked to the managerial style used by the manager. The way a manager interacts with their team assigns tasks, and makes decisions can significantly influence the employment relationship. For instance, if a manager uses an autocratic style, they may make decisions without consulting the team, leading to a lack of employee engagement and job dissatisfaction. This can negatively impact the employment relationship, leading to high employee turnover and low productivity (Mansor, 2012). On the other hand, if a manager uses a democratic style, they involve the team in decision-making, leading to a sense of ownership and empowerment. This can positively impact the employment relationship, leading to high employee engagement, job satisfaction, and loyalty. Furthermore, the manager's leadership style can also influence the level of trust and communication between the manager and their team. A transformational manager who inspires and motivates their team can create a positive employment relationship, leading to high levels of trust and open communication (Suknunan, 2022).
Thus, from the discussion, it can be said that the managerial style used by a manager can significantly impact the employment relationship between the manager and their team. A manager who uses an effective style can create a positive work environment that fosters employee engagement, job satisfaction, and loyalty, leading to high levels of productivity and success (Purcell, 2017).
Classification of managerial style
The classification of managerial styles using individualism and collectivism as the main segment is a reflection of the cultural differences that exist between countries and organizations. Individualism refers to a cultural value that emphasizes individual goals, achievements, and autonomy, while collectivism emphasizes group goals, relationships, and interdependence.
Based on this, the following classification of managerial styles can be made:
Individualistic managerial style: This style is characterized by a focus on individual goals and achievement. The manager emphasizes individual accountability and rewards, and there is little emphasis on group goals or collaboration. The manager may use a more transactional leadership style, providing incentives and rewards for individual performance (Abubakar, 2019).
Collectivistic managerial style: This style is characterized by a focus on group goals and relationships. The manager emphasizes group accountability and collaboration, and there is a strong emphasis on social harmony and cooperation. The manager may use a more transformational leadership style, inspiring and motivating employees to work towards common goals (Felix, 2015).
Also, considering the managerial style unitarism is a type of management approach that emphasizes the importance of a unified and harmonious workplace where all employees work towards common goals. Unitarianism is a management philosophy that assumes that all employees share the same goals and values as the organization and that there is no conflict of interest between them. Managers who adopt a unitarist managerial style tend to view employees as partners in the success of the organization (Famá, 2017). They work towards creating a collaborative work environment where employees are motivated to work together towards common goals. This managerial style emphasizes communication, cooperation, and consensus-building, where the manager plays the role of a mediator and a facilitator. In the unitarist managerial style, the manager encourages open communication and dialogue among employees, creating a culture of trust and mutual respect. The manager recognizes that employees have different skills, experiences, and perspectives, and values diversity in the workplace. This style promotes a positive work environment where employees feel valued and motivated to contribute to the success of the organization (Nwadukwe, 2012).
Figure 2: Managerial style using unitarism
Which approach is most likely to be utilized by British organizations
Individualism and collectivism are cultural dimensions that reflect the extent to which individuals are integrated into groups or prioritize their own individual needs and goals. In a collectivist culture, individuals are more likely to identify with and prioritize the needs of their group, such as their family, team, or organization. In contrast, in an individualistic culture, individuals prioritize their own goals and aspirations over the needs of the group. The approach most likely to be utilized by British organizations can vary depending on the industry, the size of the company, and its overall culture. However, in general, British organizations tend to have a collectivist approach towards management. Collectivism is a management approach that values the collective good over individual needs and interests. It emphasizes teamwork, collaboration, and group decision-making. In a collectivist culture, employees are more likely to prioritize the needs of the organization over their own personal goals, and the manager is seen as a facilitator of the team's success (Bloom, 2021).
One example of a British company that employs a collectivist approach to management is Tesco. Tesco is one of the largest retailers in the UK and has a workforce of over 300,000 employees. The company has a strong culture of teamwork and collaboration, and its management approach reflects this. For example, Tesco has a strong emphasis on employee engagement and empowerment. The company encourages employees to share their ideas and feedback through various channels, such as employee surveys and focus groups. Tesco also provides training and development opportunities to help employees grow and advance within the company (Crowe, 2011).
Another British company that employs a collectivist approach is Aldi. Aldi is a discount supermarket chain with over 900 stores in the UK. The company's management approach is based on teamwork and collaboration. Aldi has a flat organizational structure, with a small number of managers overseeing a large number of employees. The company's focus on teamwork and collaboration is reflected in its culture of cross-functional working. For example, employees from different departments work together to develop and implement new products and initiatives (Khadka, 2017).
Sainsbury's is another example of a British company that has a collectivist approach towards management. Sainsbury's is one of the largest supermarket chains in the UK, with over 1,400 stores and a workforce of over 170,000 employees. The company places a strong emphasis on employee engagement and empowerment. For example, Sainsbury's has a program called "You Said, We Did," which encourages employees to provide feedback and suggestions for improving the company's operations. The company also has a training and development program called "Learning and Development," which provides employees with opportunities to improve their skills and advance their careers (Khadka, 2017).
While collectivism is the dominant approach to management in British organizations, some companies may also adopt individualistic approaches, particularly in industries that value innovation and entrepreneurship. For example, technology companies such as Google and Amazon tend to have more individualistic cultures, where employees are encouraged to be creative and take risks. However, even in these companies, there is still a strong emphasis on teamwork and collaboration. In conclusion, British organizations tend to have a collectivist approach to management, emphasizing teamwork, collaboration, and group decision-making. This approach is reflected in the culture of companies such as Tesco, Aldi, and Sainsbury's, which place a strong emphasis on employee engagement and empowerment. However, individualistic approaches may also be utilized in some industries, particularly those that value innovation and entrepreneurship (BUCATA, 2022).
Conclusion
Concluding the study, it can be said that, managerial styles play a critical role in shaping organizational culture and employee behaviour. Different managerial styles are adopted by managers based on their personal preferences, organizational goals, and cultural norms.
The most common types of managerial styles include autocratic, democratic, laissez-faire, transformational, transactional, paternalistic, and bureaucratic. These styles differ in terms of their leadership approach, decision-making, and communication styles. Moreover, managerial styles can also be classified based on the individualism-collectivism dimension. Collectivist cultures emphasize teamwork, collaboration, and group decision-making, while individualistic cultures prioritize individual needs and goals. British organizations tend to adopt a collectivist approach to management, which emphasizes teamwork, collaboration, and employee empowerment. Understanding different managerial styles can help managers to choose the most appropriate style for their organization and work effectively with their employees. It can also help employees to better understand their manager's leadership approach and expectations. Ultimately, adopting a managerial style that fits the organizational culture and values can lead to higher employee satisfaction, improved productivity, and better organizational outcomes.
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