.. liography A business seeks profit by provided customers with goods and services (Schoell, et al 15). There are various types of businesses that differ according to their ownership. The three basic forms of private ownership businesses are the sole proprietorship (i.e. sole trader), partnership, and corporation (Schoell, et al 132). The type of ownership that a business organization would apply is dependent on the owner’s financial status and objectives.
Apart from the different types of ownerships, there are various styles of management and leadership. The organization’s management and leadership style has a great effect on the working environment and the employees’ motivation. The development of an optimal leadership style and managerial skills that is the most appropriate to an organization is crucial, having a major effect on its life span. The working environment affects the employees’ motivation, which in turn influences the overall progress and well being of the organization. According to a management consultant, called Peter Economy, It all comes down to keeping employees enthusiastic and energized, which is accomplished by developing a leadership style that would endorse the ideal environment in the business firm (Buchanan 1). A Manager’s leadership style contributes directly to the subordinates’ motivation and work satisfaction, and the work progress in the organization.
There are two types of leadership styles, one that is task-oriented and the other that is employee-oriented. A manager with a task-oriented style will have work results as his biggest concerns; and therefore, he will develop rigid regulations that would lead the subordinates into working their tasks, exactly as he taught them, to reach his desired results. On the other hand, the manager with an employee-oriented manner will be concerned with the employees’ condition. This manager’s objective is to boost the employees’ self-esteem and persuade them on working together to help him in decision-making and on ways to solve problems. However, not all leaders develop a style that is an absolute task-oriented or employee-oriented, their style is consisted of different characteristics from each styles. Hence a manager would be referred to as a more task-oriented or a more employee-oriented, rather than solely describing him as either one (Schoell, et al 284). There are three main types of leadership styles that shape all kinds of leaders.
The three types are the autocratic, democratic, and free-reign styles of leadership. The autocratic style of leadership would be considered the most task-oriented type, in which the manager carry out all the decision-making process without any consultations from subordinates. Communication is one-way, where the work provided by the manager is to be done without any modifications by the subordinates. In this style of leadership, the delegation of authority is centralized, meaning that the decision-making is only performed by top-line managers and is rarely delegated to subordinates along the chain of command (Bovee, et al 476-8). The democratic leadership style is more of a participative type of leadership (Schoell, et al 286).
It is a two-way communication leadership, in which employees are allowed to contribute in the decision-making; however, the manager makes the final decision. The delegation of authority in this style of leadership is less centralized and more decentralized than in the autocratic style. Employees feel more flexible, since they are allowed to modify in the methods of accomplishing the tasks and to contribute in the decision-making. This changes the working environment; making it an environment with a lot of team working, where each employee feels that he plays an essential role in the well being of the business (Bovee, et al 476-8). The free-reign style of leadership is the most lenient style, in which the employees have the complete freedom by having the right of making the final decision-making. When assigned tasks, they finish them using their desired method, making the final decision and adding any innovations.
The leader creates a very friendly environment where each subordinate is accountable for his job, without the involvement of the leader, except in some situations. However, the manager in this case adopts this style of leadership when there is great honesty and trust between the employees and managers. Ideal leaders follow the motivational theories to enhance the working environment and to make the employees not only satisfied, but also highly motivated. Employees’ motivation is the force that initiates, directs, and sustains personal behaviors and actions, which is the force that moves employees and managers to higher performance (Bovee, et al 436). There were different motivational theorists, which included Maslow’s hierarchy of needs, Herzberg’s two-factor theory, Mayo, and Taylor’s Hawthorne effects. Abraham Maslow believed that the human needs are all categorized in his hierarchy of needs.
He addresses that to become highly motivated, one has to have climbed a ladder of needs by satisfying each need. His hierarchy is consistent of five categories, which include the physiological, safety, social, esteem, and self-actualization (Bovee, et al. 440). The physiological needs lie in the lowest level in his hierarchy. These needs are the basic human needs, such as the need for shelter, warmth, food, and drink.
A person that is not satisfied with these needs will not be interested in moving on to the higher-level needs. As these needs are satisfied, one pursues the safety needs. The safety needs are the needs for security, the protection from deprivation and from danger. The social needs come after the fist two needs have been met. They are the needs for affection, friendship and companionship. Once these levels of needs are satisfied, one seeks for recognition so as to satisfy his ego needs. Self-actualization needs are at the highest level of the hierarchy, the hardest to reach, and never completely achieved (Schoell, et al 293-4). Herzberg’s two-factor theory is a further step of Maslow’s theory.
Fredrick Herzberg, who is also a psychologist, divided Maslow’s hierarchy of needs into two sets of needs, a higher-level set of needs and a lower-level set of needs. He named the hygienes to be the incentive factors that would satisfy the lower set of needs (Schoell, et al 294). They are factors in the working environment itself, such as the working conditions, regulations, interpersonal relations, pay, and supervision. For example, (Bovee, et al 443). However, the incentives that would fulfill the higher-level of needs are called the motivators (Schoell, et al 294). Business Essays.