The main advantage of this style is that the direction of the business will remain constant, and the decisions will all be similar, this in turn can project an image of a confident, well managed business. Ford does not implement this form of management as they believe that decisions should be made by all levels.
Paternalistic
A Paternalistic manager is more dictatorial; however their decisions tend to be in the best interests of the employees rather than the business. Feedback from this method is again generally downward; however feedback to the management will occur in order for the employees to be kept happy. This style can be highly advantageous and can engender loyalty from the employees, leading to a lower labour turnover, thanks to the emphasis on social needs.
The main disadvantages of Paternalistic Management styles are that employees become highly dependent on the leader, and if the wrong decisions are made, then all employees may become dissatisfied with that particular leader. At the Ford engine plant Bridgend, management encourages consultation and use ‘suggestion boxes’ for ideas. As an incentive to use the ‘suggestion box’ they can win a car or a cash sum of between £20-£2,500.
Democratic
In a democratic management style, the manager will allow the lower employees to participate in the decision process; therefore everything is agreed by the majority of employees. The communication is extensive in both directions, meaning that lower employees can discuss matters with managers etc… Ford does this through methods of:
Participation
This is where the employee participates in decision making processes that could change the plant. Some employees might not want to participate, but Ford try to get every employee involved. Ford also tries to get workers to participate in the use of ‘suggestion boxes’ these can be used to show to individual employee’s initiative. Also as an incentive to participate they can be entered into a prize draw at the end of each month the win a car or a cash sum of £20 -25,000
Paternalistic
Ford emphasise on teamwork, they know that it is needed to create high quality engines. That is why Managers seek to train teams to work as efficiently as possible. Each team is responsible for their productivity quality.
Laizzez-faire
The Laizzez-faire manger is one who leaves employees to ‘get on’ with their work with little or no interference. A wide range of guidelines may be established, but with the daily role of a manager minimal. By giving employees freedom, it gives them an opportunity to show some responsibility, initiative and creativity. At Ford, they guarantee that their aims are made clear. These are to create engines at the right price, time and to meet demand. Computer aided Manufacture (CAM) is used, to cut job time and to increase the level of quality in engines. Every individual is personally responsible for his/her quality of output.
Reactive
A reactive manager is one who deals with problems and issues when they happen rather than before (like Pro-Active). This form of manager can be described as ‘surviving the seat of you pants’. The only difficulty is that there may not be enough time or resources to deal with a situation because it is simply too late.
Pro-Active
A Pro-Active manager is one who looks to the future and plans ahead, rather than waiting for events to happen. They anticipate recent events and see how they can affect the business. If it looks like it could affect the business then they come up with suitable solutions to overcome it just incase it happens. The proactive manager then communicates with the team so that they are trained and prepared to deal with new situations. Ford tend to use this type management style rather than Reactive.
Leadership Styles
The Autocrat
The autocrat leader sets objectives and allocates tasks and demands obedience. The advantages of this at Ford are that the group will respond quickly and effectively and direction will always be constant. The disadvantages are that the team may become too dependant on the leader and may even become unable to operate machinery without them. Constant supervision of the team will be required and also the team may become dissatisfied with the leader.
The Democrat
The democrat leader encourages participation in the decision making process by consulting team members, delegating where possible and explaining decisions. The disadvantages of this leadership style are that they need to enhance the commitment of the employees and the participation will need to be improved.
