Autocratic management can be demotivating.
If you have an autocratic manager, you don't need a textbook to define this type of management style. You know through experience that decisions are made top-down, often without input, and that working for an autocratic manager can, at times, be difficult. However, you may not be aware of the advantages and disadvantages of autocratic management or why, in some cases, a leader may choose this style.
Advantage: Effective in Making Quick Decisions
In a time of crisis when the boss needs to make quick decisions, autocratic management can be effective. For example, Leonard D. Schaeffer writes in the "Harvard Business Review" at HBR.org that his autocratic management style helped transform the "floundering" Blue Cross of California into WellPoint Health Networks, one of the largest health organizations in the United States. In the article The Leadership Journey, he says, "When a business needs to change relatively quickly, it's much more important to just make a decision and get people moving than it is to take the time to conduct a thorough analysis and attempt to influence others to come around to your way of thinking."
Disadvantage: Decisions Are in the Hands of a Few
Henry Ford once fired a top executive for warning him about the decline of Ford Motor Company's signature Model T. But the executive was right. And according to Professor Richard S. Tedlow in the article Leaders in Denial at HBR.org, Ford's failure to see the situation and include others in his decision making "allowed Chrysler's Plymouth to gain market share and permitted General Motors to seize market leadership." This is one example of how unquestioned power in the hands of one or a few can have dire consequences.
Advantage: Autocratic Management Can Be Reassuring
Especially in a time of crisis, some people prefer autocratic management because it offers direct, immediate authority. You can see this during times of war or strife when governments and military leaders are often expected to take charge.
Disadvantage: Can Cause Stress and Demotivate
Autocratic management can be demotivating, demoralizing and, as Leonard D. Schaeffer writes in The Leadership Journey, "Often causes pain and arouses antagonism." Unfortunately, says Schaeffer, there may be no way "for a chief executive to escape the resentment and blame that will be directed toward him or her."
Advantage: Presents a Cohesive, Driven Organization
Autocratic management can project the image of a consistent, cohesive business or organization. For example, from cupcakes to crafts, Martha Stewart's attention to detail and notorious autocratic management style has helped to create an undeniably successful brand and business.
Disadvantage: Success Is Dependent Upon Management
In 2004, when a jury found Martha Stewart guilty of obstructing justice and lying to investigators about a stock sale, her legal troubles and tabloid presence threatened to overwhelm Martha Stewart Living Omnimedia. As Kenneth N. Gilpin points out in "The New York Times" article Martha Stewart Indicted on Criminal Charges, her indictment and controversy leading up to it cost the New York-based company millions of dollars in legal fees and drove away advertisers and consumers. This is an example of how autocratic management can jeopardize the business or organization if the leader is corrupt or involved in scandal.
Conclusion
If you've worked for a difficult, autocratic manager, it might be hard to believe that this management style can be an effective strategy. It's important to note, though, that ideal management adapts and evolves according to the needs of a business or organization. As Leonard D. Schaeffer points out in "Harvard Business Review," The Leadership Journey, "The top-down, autocratic style I had to adopt to turn around the business gave way to a more hands-off style that focused on motivating others to act rather than managing them directly."
Tags: autocratic management, management style, Martha Stewart, autocratic manager, business organization, Leadership Journey, Leonard Schaeffer