Internal factors
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Internal company factors that determine a management style include, but are not limited to, policies, priorities, corporate culture, staff skill levels, motivation and management structures.[1][2]
In order to be effective, a manager’s style and outlook must fit into the business’s organizational culture. Their style must adhere to the policies and procedures set forth by the organization, and they must be able to achieve company objectives. They are responsible for controlling an effective work team and must uphold organizational beliefs within that team. A manager who cannot do this would likely be deemed ineffective and be removed from the position.[2]
Staff skill levels and motivation greatly affect management styles as it is necessary for a manager to accomplish objectives while maintaining a content and effective work team. Less skilled or motivated employees would require a style that is more controlling and fosters consistent supervision to ensure productivity. Highly motivated or skilled employees require less supervision and direction as they are typically more technically skilled than management and have the ability, and desire, to make more autonomous decisions. These employees would benefit from a management style that is less controlling or hands-off.
Hierarchical management structures call for decision to be made solely by upper management, and within the scope of a manager’s position in the hierarchy. These types of organizations require more controlling management styles in order to meet objectives and get things done as specified. Flatter structures with more decentralized decision-making benefit from management styles that encourage team communication and employee’s contribution with regard to decision-making.
External factors
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External factors affecting management styles are those that are outside of the control of the organization. These include, but are not limited to consumers, suppliers, competitors, the economy, and the law.[1]
Some examples of these factors are a competitor who offers a more autonomous environment for skilled employees and control the job pool; the economy for a specific manufactured good results in a spike in demand causing a production crisis; the laws for a specific industry change and require employees who have extensive knowledge and certification causing the company employees talent and motivation to change.
