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Management

Advantages and Disadvantages of Transformational Leadership Style

Last Updated on February 10, 2023 By Methew Harbor Leave a Comment

Every organization requires a particular leadership system to achieve objectives and goals. Some do this using coercive and strict leadership, whereas others choose a more employee-friendly innovative approach like laissez-faire leadership.

A few organizations also opt for transformational leadership. Transformational leaders work by motivating their employees to do better instead of micromanaging them. It is not so common in small-scale organizations as transformation leadership success requires time and patience.

This article has everything you need to know about this style, including the advantages and disadvantages of transformational leadership.

Table of Contents

  • What is Transformational Leadership?
  • Characteristics of Transformational Leaders
    • Visionary
    • Communication Skills
    • Passionate
    • Role Model
  • Advantages of Transformational Leadership Style
    • Transformation
    • Freedom
    • Improves the Morale
    • Learning and Development
    • Better Engagement 
    • Realistic Visions
    • Absence of Coercive Mindset
    • Low Turnover Rate
    • Effective
  • Disadvantages of Transformational Leadership
    • Loss of Influence
    • May Cause Negative Outcomes
    • Slow Decision Making
    • Need for Consistent Feedback
    • Employee Burnout
    • Change is Inevitable
    • Less Focus on Short-Term Goals
    • Rebellious Behavior
    • May be Deceptive
  • The Bottom Line
  • FAQs
    • What are the Elements of the Transformational Leadership Style?
    • How to be an Effective Transformational Leader?
    • What is the Difference Between Transformational and Transactional Leadership?

What is Transformational Leadership?

A political scientist James MacGregor Burns conceptualized this leadership system based on motivation. The transformational leadership style motivates the employees from within by setting examples for them. Transformational leaders must perform their roles so well that the employees trust their abilities. The leader provides their employees with a clear vision of the future, and they think of their leader as a role model.

Transformational leadership transforms the behavior of its employees.

It is completely opposite to the transactional style of leadership that pushes the employees to perform better by offering rewards. This leadership style also believes in punishment for poor performance instead of the transformational style. Transformational leaders put in their effort to change the way their team takes the job. They make it something they would look forward to every day.

Characteristics of Transformational Leaders

Visionary

A transformational leader can only be successful when he is visionary. They must have a realistic vision to inspire their team. When the team believes in the vision of their leader, they work hard to achieve that vision.

Communication Skills

Communication skills are an inevitable characteristic of a transformational leader. They might not be able to transform the thought process of the employees with poor communication skills. Always remember that communication is a two-way road. You do not only inform of what you want but also what your team wants to say. You can only make your team understand the reality of your vision when you know how to communicate.

Passionate

Transformational leaders are passionate and persistent about their jobs. They are optimistic about the vision and goals of their employees. The team members see the passion in their leaders and wish to achieve the same.

Role Model

A transformational leader has to be role model for their employees. They are similar to coaching leaders. Transformational leaders set high standards for the team to follow. The team looks up to strong values and ethics in their leader. Make sure not to be a boss testing their team members and shout at them all the time.

Advantages of Transformational Leadership Style

Transformation

The most evident advantage of the transformational leadership style is the change it instills in the organization. Transformational leaders modify the processes if the company has been working on traditional leadership methods. Such leaders alter the old patterns in the company, which encourages the team to perform well. Organizations must be ready to accept this transformation to improve the outputs.

organization leadership

Freedom

Authoritative leadership styles typically do not allow innovation and freedom in the organization. Transformational leaders offer freedom of innovation and expression to their teams. It lets them give better suggestions to their leaders that they appreciate. Transformational leaders do not fear change and welcome innovation.

Improves the Morale

Traditional organizational leadership styles do not care much about the employee’s interests or morale. They are concerned about the results only. On the contrary, a transformational leader improves the team’s confidence by encouraging them. They utilize the two-way feedback system to praise their team and inform them of their shortcomings.

Learning and Development

Transformational leaders contribute to learning and development in the organization. The leaders instill emotional intelligence and required skills in their team to give them confidence. Engaging the team in team-building and intellectual activities encourages learning in the company.

Better Engagement 

Transformational leaders push employees to develop intrinsic motivation. Every team member works to achieve their self-decided goals that contribute to organizational growth. The employees do not work for their personal motives only. They realize the importance of teamwork and engage in processes.

Realistic Visions

Transformational leaders do not believe in unrealistic visions and create new visions for the company. They understand the problems in the existing concept and take adequate measures to fill the gap. They communicate the importance of the new corporate vision to their team to work on it together. The team follows their leader when they see them working towards their vision passionately.

Absence of Coercive Mindset

While coercive leaders take pride in controlling their employees, transformational leaders detest this approach. They do not use their position to control the team members. They consider their employee’s individual and organizational problems while making changes in the system. Such leaders do not like the idea of fear within the team. Instead, they prefer being respected for their ethics and values.

Low Turnover Rate

Transformational leaders do not push their teams beyond their abilities and limits. Instead, they utilize their emotional intelligence to motivate and inspire their employees. The team works together and does not feel burdened. Thus, transformational leaders can retain their employees through authoritative or autocratic leadership styles.

Effective

This leadership style is quite effective compared to other techniques. The changes in the organization give a new direction to the employees without coercion. Employees trust their leaders and follow in their footsteps to reach their goals.

Disadvantages of Transformational Leadership

Loss of Influence

A transformational leader can keep the team united when they understand the vision and strategy to hit the goals. Poor communication may not influence the team, and they lose interest in the vision. A transformational leadership system cannot perform with extrinsic motivation. They must motivate the team intrinsically to keep the employees engaged.

May Cause Negative Outcomes

Sometimes, transformational leaders do not impart morals and values to their team. They work in a transformational style but lead to negative outcomes instead of positive ones. They utilize their charisma and motivational power to push their employees to work in negative ways. As a leader, you must drive positive results instead of adverse outcomes.

Slow Decision Making

Transformational leadership does not require instructions from functional management. Yet, this kind of leadership involves all team members before deciding. Transformational leaders wish to see how they have transformed the mindset of their employees. Thus, they prefer input from all team members, causing a delay in decision-making.

Need for Consistent Feedback

A transformational leadership system requires consistent feedback due to the lack of micromanagement. The leaders must provide feedback now and then to keep their team on track and have high enthusiasm levels. The input allows the employees to understand their shortcomings and work on them.

Employee Burnout

Modern leadership styles like visionary, coaching, and transformational inspire their teams by setting high standards. While they encourage their team to do better, the employees may tire of working hard to achieve the goals. Unreasonable deadlines to produce quick results may also lead to burnout. It benefits you for the time being but may cause harm in the long run.

Change is Inevitable

Any organization opting for transformational leadership must know that change is inevitable. If you are looking to incorporate a transformational leadership style without considering organizational changes, that’s not possible. This leadership style requires changes in team management and strategies to modify how the employees think.

Less Focus on Short-Term Goals

Transformational leaders focus less on short-term goals and work towards their vision. The team members also tend to ignore short-term goals, following the footsteps of their leader. Such leaders may fail to structure strategies to cope with long-term goals.

Rebellious Behavior

Sometimes the team members might not agree with the vision or strategy of their leader. If the leader fails to communicate the need and importance of a new concept, the team may not agree with them. This may result in rebellion in the organization and cause negativity.

May be Deceptive

Transformational leaders are skilled at understanding the strengths and weaknesses of their employees. However, they sometimes overlook the capability of the team members to keep production running. The leaders may push the employees to do work they cannot do. It can lead to disruption within the team and eventually reduce productivity.

The Bottom Line

The transformational leadership style is a modern technique that engages and motivates workers. It differs from traditional leadership styles as it does not micromanage or push employees beyond their capability. It focuses on communication, better engagement, and learning for better growth. It helps reduce employee turnover when the team respects and follows the manager. Yet, it may cause burnout or lead to negative outcomes if not managed properly. The advantages and disadvantages of the transformational leadership style can help you make better decisions.

FAQs

What are the Elements of the Transformational Leadership Style?

Transformational leadership consists of four elements according to the Full Range Leadership Model. They include IC (individual consideration), IS (intellectual stimulation), IM (inspirational motivation), and II (idealized influence).

How to be an Effective Transformational Leader?

An effective transformational leader takes time to understand their team. They communicate their concerns and listen to the employees as well. Influential transformational leaders are passionate and persistent about their job.

What is the Difference Between Transformational and Transactional Leadership?

Transformational and transactional leadership styles are considered the absolute opposites of each other. Transformational leadership focuses on growth and long-term vision. Contrarily, transactional leadership works for better productivity and short-term goals. The former is motivational and engages the employees. Yet, the latter works on incentives and punishments.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

Advantages and Disadvantages of Authoritative Leadership Style

Last Updated on March 2, 2023 By Methew Harbor Leave a Comment

Leadership and management are considered essential elements of running a business. Whether you are an entrepreneur or work for someone else, leadership qualities are a must for success. Studies show that every individual is a leader in their capacity and must exhibit leadership qualities like taking responsibility and initiative. Yet, things are slightly different when you are in a leadership role. When you are the CEO of your business or your higher management chooses you to be in a leadership role, you are responsible for your team. You are questioned for your performance and progress as your individual performance impacts your role as a team member as well.

As a leader, the main goal is to increase the productivity of your team and make sure everything goes smoothly. However, every leader is different from the others. Some leaders are autocratic or authoritative that keep the control in their hands. Alternatively, transformational and visionary leaders do not micromanage their teams. They allow the team members to give their best in whatever way they find convenient.

Let’s tell you more about authoritative leadership, including the advantages and disadvantages of the authoritative leadership style.

Table of Contents

  • What is the Authoritative Leadership Style?
  • Qualities of an Authoritative Leader
  • Advantages of Authoritative Leadership Style
    • Better Productivity
    • Relieves Burden from the Team
    • Time-saving
    • Lesser Mistakes
    • Clear Communication
    • Consistency
    • Suitable for Inexperienced Employees
  • Disadvantages of the Authoritative Leadership Style
    • Displeasure Within Team
    • Lesser Group Input
    • No Flexibility
    • Low Morale
    • Lesser Room for Improvement
    • Blame Falls on the Leaders
    • High Dependency
    • Weak Team Engagement
    • Insecurity
    • Higher Turnover Rate
  • What are the Best Authoritative Leadership Practices?
    • Improve Communication
    • Be Fair
    • Treat Team with Respect
  • The Bottom Line

What is the Authoritative Leadership Style?

The most precise way to explain an authoritative leadership style is an authoritative leader’s motto, “My Way or the High Way.”

Authoritative leaders are also known as autocratic leaders. These leaders create specific operating guidelines and work according to the pre specified guidelines only. Authoritative leadership does not appreciate free thinking and creativity. Such leaders like to keep control in their hands and do not offer leadership opportunities to their team members.

While authoritative leadership is not considered the best practice, it is still widely used in a few organizations. It is a preferred choice of leadership style in government structures where people must align to a specific method as changes may lead to problems. The leadership is centralized without empowering others to make decisions.

Qualities of an Authoritative Leader

Before we talk about the advantages and disadvantages of the authoritative leadership style, let’s look at the qualities of authoritative leaders.

  • Authoritative leaders can take on challenges and finish projects without entirely relying on the team. They do not wait for the team members to update them about the progress and ask for it themselves before delegating further tasks.
  • These leaders are confident in their decisions and are most unlikely to change their working methods. They are sure of their conduct and processes as those practices have provided outcomes throughout their career.
  • They take the responsibility seriously and do not distribute the burden among the team. They carry most of the workload on their shoulder, and their team depends on them as the main decision-makers.
  • Authoritative leaders have good communication skills to communicate all tasks down the hierarchy. Dealing with a lot of people at once can often lead to miscommunication. Thus, these leaders possess assertive communication skills to ensure proper communication among all channels.

Now that you know all about authoritative leaders, let’s talk about the pros and cons of this leadership style. Authoritative leaders are not only responsible or strict in their conduct. There’s a lot more to this leadership style. Here are all the advantages and disadvantages of the authoritative leadership style.

Advantages of Authoritative Leadership Style

Better Productivity

All the characteristics of authoritative leadership lead to improved productivity within the team. Each team member gives their best in the particular role they are assigned. Employees working under authoritative leaders are aware of their duties and typically produce results as expected. Meeting deadlines on time with no loopholes in the process leads to better productivity from the working. It directs the energy from problem-solving or managing other team members to finding perfection in their assigned tasks.

Relieves Burden from the Team

Authoritative leaders do not only take responsibility but also pressure from higher management. The team members are only expected to focus on the designated tasks without worrying about other aspects of the process. These leaders do not expect their team members to keep an eye on other factors affecting the project. Everyone has to ensure they are giving their best while the leader takes the complex decisions. This pushes the team to perform their tasks vigilantly.

Time-saving

Organizations that follow laissez-faire or visionary leadership styles may sometimes take more time to produce results compared to authoritative leadership. While studies often show that ideas created through brainstorming within ideas have a better impact, it is time-taking. On the contrary, the authoritative leadership style produces quicker results. It is suitable for companies that need to generate results in a shorter time. The leaders assign work along with strict deadlines. The team members do not have to spend a lot of time brainstorming new ideas. Eventually, it also reduces the time to consult with other people to find solutions to problems.

Lesser Mistakes

When everyone in the team follows a pre-designed model for working in the department, the chances of mistakes are less. The leader’s communication skills ensure that the team does not deviate from the given pathway and performs their task accordingly. Moreover, considering their responsibility, authoritative leaders go through each phase of the process to point out any errors and fix them immediately.

Clear Communication

As mentioned earlier, authoritative leaders have articulate communication skills to convey their message to the staff. They are responsible for communicating the progress to the team and higher management. So, employees working under an authoritative leader understand that they cannot instruct other teammates about their tasks. It prevents miscommunication within the team and makes way for better performance when the instructions are clear. It also avoids issues within the team as no team member tries to take the lead over the other by authorizing tasks.

Consistency

The authoritative leadership style provides consistent results, especially when working in small groups. It can be difficult to manage small groups as every member tends to make decisions themselves. Often, workers do not even inform the leaders before deciding on an important matter. In such situations, an authoritative leadership style provides a direction and pathway for the members to work on. There are lesser chances of miscommunication, and the group produces consistent results.

Suitable for Inexperienced Employees

The authoritative leadership style is suitable for inexperienced employees who may not be able to make decisions independently. It gives them a push start and offers an insight into how leaders work to keep the team running smoothly. It will also help them polish their skills of working in a team and utilize the expertise of their leader where needed.

people-smiling

Disadvantages of the Authoritative Leadership Style

Displeasure Within Team

While the authoritative leadership style is a good choice for some organizations, every employee might not appreciate it. Employees coming from a free-reign environment do not like being micromanaged or controlled. This can lead to displeasure and rebellion within the team about the leader being too bossy.

Many people do not like to be dictated to and expected to follow the rules word by word. It halts their creative abilities, and they believe they have been pushed into a small box. Such employees also think that any little mistake can lead to the blame falling on their heads as they failed to care for a minor problem. Thus, many employees prefer working under transformational leaders instead of authoritative ones. On the other hand, Laissez-faire leadership promotes creativity and leadership within leadership.

Lesser Group Input

The lack of involvement from the team also leads to a lack of interest within the team. Often, team members feel demotivated when their experiences or suggestions are not welcome. They stop taking an interest in the processes within the company and only focus on the assigned tasks. It may result in issues the leader does not anticipate. Allowing the team members to give their input to improve the process can benefit the department and the organization.

No Flexibility

Authoritative leaders are highly concerned about receiving the designated tasks on time and usually offer little flexibility to the workers. The employees feel stuck in the company and look for better places to move to. The lack of flexibility may also harm their mental and physical health, resulting in more errors instead of better productivity.

Low Morale

Have you seen how team members love to give their opinions when asked?

Most employees appreciate it when their leaders and managers ask for their suggestions and opinions. Authoritative leaders typically lack this quality. Thus, the workers feel dissatisfied with their job as they find it robotic to only follow a given schedule. Many employees also leave their companies for the same reason they are not able to enjoy their job under authoritative leaders.

Lesser Room for Improvement

Persons, teams, and companies improve through feedback and criticism. However, authoritative leaders reduce the room for improvement within the team to a great extent as they do not ask for feedback. The members avoid offering feedback when not asked due to the nature of the leaders. It hinders the growth of the employees as individuals and the organization as a whole.

Blame Falls on the Leaders

People who are a part of teams run by authoritative leaders fear mistakes. Authoritative leaders do not spare employees minor mistakes and might not refrain from pointing you in front of the rest of the team. It is not so with the team only. Autocratic leaders are held responsible for any problems caused by the team. The higher management does not ask the team members about the issue as they understand the leadership style being followed. They believe it is the leader’s responsibility to deliver the required results.

High Dependency

What happens in authoritative leadership when the leader fails to respond to the team on time?

You guessed it right – the team misses deadlines, and productivity decreases. When the team is so dependent on the leader and not authorized to make any decisions, a delay in communication can stop the operation. It often leads to missed deadlines, delays in project delivery, and loss of clients.

Weak Team Engagement

It has been seen that teams with visionary leaders can perform better together even when no one is specifically authorized. They depend on each other and trust the other person to make the best decision. It also increases their sense of empathy, and the team members may cover another teammate’s task if they are not available. This cycle continues, and the work is not affected even if an employee is unavailable for a short period.

Insecurity

While we mentioned that authoritative leaders are confident in their conduct and methods, it is not always the case. Being humans, sometimes authoritative or autocratic leadership may also make wrong decisions. As authoritative leaders put themselves forward as confident, and experienced, it can be difficult for them to admit their mistakes. It develops a sense of insecurity in them that someone else might take their position if they cannot prove their expertise. The failure to consult with the team and take advantage of experienced members can harm the team’s reputation in the long term.

Higher Turnover Rate

A high turnover rate is common in organizations that follow authoritative and bureaucratic leadership. When an employee has worked in the same environment, performing the same task for some time, they will try to move to another place to learn more. Yet, companies do not typically mind this change as they also believe that they have made the best use of an individual’s capacity. When they receive the productivity they look forward to; such companies are open to recruiting new people interested in the task. However, recruitment is a costly and time-taking process, and it is better to retain employees than hire new ones.

What are the Best Authoritative Leadership Practices?

Being an authoritative or autocratic leader does not mean you only have to be strict in your conduct. You can maintain a healthy relationship with your team by following experts’ practices. Here are the best authoritative leadership practices you can follow:

Improve Communication

To be an authoritative leader to your team, it is important to improve your communication skills. All the matters in the department depend on your communication skills. A flaw in communicating the tasks to the workers to update the higher management can cause serious trouble. Active listening can also help you improve your communication skills while listening to others. Consider the ideas and suggestions of your employees even if you do not find them suitable enough to follow. It gives a message that you care about your team members.

Be Fair

An important factor that authoritative and autocratic leaders often forget is that they must be fair to everyone on the team. While the team does not put in extra input besides the designated tasks, sometimes a few employees feel that the leaders are being unfair. Put great effort into treating everyone in the team fairly and stop anyone who tries to be the leader when following authoritative leadership.

Treat Team with Respect

Often the team members in an autocratic setup also feel like they are not respected as the leaders do not give importance to their suggestions. You may clear to the team that you are the final decision-making authority, but do not make them feel less. Enable them to express themselves and show empathy, so they do not feel disrespected or ignored.

The Bottom Line

Authoritative leadership, also known as autocratic, provides complete authority and control to the leadership only. Some advantages and disadvantages of the authoritative leadership style include increased productivity, less time consumption, clarity, less group input, and weak team engagement. Some people like working under autocratic leadership, but most find it intimidating and dictating. You may choose this leadership style if it suits the organization’s setup.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

Signs of a Bad Manager

Last Updated on February 2, 2023 By Methew Harbor Leave a Comment

It’s no surprise that a study comprising LinkedIn participants showed that 88% of them were happy when their boss was absent from work. A bad manager is everyone’s nightmare! We often think that getting into a multinational is the most important goal in one’s professional life. But, working in an esteemed organization with a bad manager is worse.

You do not need a magnifying glass to spot a bad manager in your organization. You can easily point out the signs of a bad manager. Here are a few to help you understand if you are working under a toxic boss.

Table of Contents

  • Over-Work is Routine
  • Regular Outbursts
  • Does Not Give You Credit
  • No Empowerment
  • Does Not Support You
  • Micromanagement
  • No Feedback
  • Favoritism
  • Innovation is Not Welcome
  • Lack of Clarity
  • Insulting Employees
  • Under Delivering
  • Demotivating
  • Lacks Ownership
  • Ungrateful
  • Does Not Say “No”
  • Gossips
  • Over-Dependent
  • Fails to Resolve Conflict
  • Poor Listening
  • No Team Building
  • Unprofessional Behavior 
  • High Turnover Rate
  • How to Survive a Bad Manager?

Over-Work is Routine

Good bosses realize the importance of work-life balance in their employee’s life. Thus, if your boss keeps asking you to stay for a longer time in the office or adds more workload without considering your health they are not a good boss.

Sometimes, a project may require long sittings. However, it must not be a norm in the workplace.

Regular Outbursts

One of the most common traits of a stressful boss is their continuous yelling. Some managers believe that shouting at their employees will gain more respect. On the contrary, it shows that they want to exhibit their power. Yelling in the workplace is a big no.

Does Not Give You Credit

You worked day and night for a project your boss had to present to the CEO. But, he did not credit you for your research and composition.

Haven’t we all experienced it?

It is common for toxic bosses not to credit their teammates. They believe that the employees are working for them and there is no need to give credit. Although, considerate leaders make sure that they provide credit to their team where due.

No Empowerment

Many organizations play a significant role in grooming their employees to excel in their professional life. One of them includes empowering them. Bad managers usually do not want to distribute power as they fear being taken over. While your boss may think otherwise, empowering talented individuals increases growth rates and revenue.

Does Not Support You

If you have not had a great boss, you may not relate. But, let us tell you that supportive bosses make sure to be your best advocate. They understand the strengths and weaknesses of their team and defend them in front of other managers. They do not let others degrade you and emphasize your strong points. Unfortunately, bad bosses with a coercive mindset often lack advocacy. They think it will reduce their authority over the employees.

Micromanagement

There is nothing worse than having to report every moment to your boss. We all expect our managers to trust us a little, right?

If your boss wants to know everything you are doing in the project, they might not have good intentions. Sometimes it is habitual, while managers often want to take credit for the work done. Linked In reports show that 79% of employees have been micromanaged at least once in their careers. It reduces innovation and interest in giving the best.

No Feedback

While bad managers may believe in micromanagement, they often forget about the feedback. They fail to conduct one-on-one meetings for their team. How does one improve their performance without constructive feedback from the leaders?

Favoritism

Favoritism is a common issue in workplaces where bosses like to divide and rule. Managers may choose a few favorites in the office and assign important responsibilities to them only. They justify this irrational delegation of tasks by overstating their favorite’s abilities. This behavior in an office is quite unprofessional and must be conveyed to higher management or the HR department.

Innovation is Not Welcome

How many times has your boss rejected an efficient working strategy? Uncountable times? Don’t worry. You are not alone in this boat.

Autocratic leaders with an authoritative mindset are often against innovation in functioning. They prefer giving strict instructions to comply with. An unappreciative manager neither encourages your ideas nor conveys them to higher management.

Lack of Clarity

As opposed to authoritative leaders, some bosses are not interested in the company’s benefit. They do not clarify the objective, mission, strategy, or expected outcomes. They might not give clear instructions about the task or change their mind too often. It is one of the most alarming signs of a bad manager. Influential leaders always have a game plan and clear goals communicated to their team.

Insulting Employees

Man pointing as blaming

Insulting someone publicly is the worst thing to do. Yet, some bosses do it intentionally. It could be due to favoritism in the department or a minor mistake. Many bosses exhibit their authority by publicly criticizing an employee over a slight error or miscommunication. Run away from such a boss immediately.

Under Delivering

A good boss always calculates and promises only what is possible. Alternatively, toxic managers do not consider the possibilities beforehand and usually overpromise. It leads to mistrust and an inability to deliver work on time.

Demotivating

It is a given with bad managers that they fail to motivate their employees. Laissez-faire leaders encourage their teams to innovate and give their best. However, self-centered bosses do not care about the morale of their employees and want to use them as much as possible. This work environment can be mentally and physically draining for the employees.

Lacks Ownership

Lack of ownership is among the most prominent signs of a bad leader. Typically such bosses hold the team for blunders regardless of their mistakes. While they fail to give credit for success and offer feedback, they also lack ownership of mistakes.

Ungrateful

If your boss says Thank you to you for staying extra hours, you are lucky. And your boss is definitely not a bad manager. However, it’s a rare sight.

Most people encounter toxic managers in their careers who are never thankful to their employees. They do not care if you work from home, stay extra hours in the office, or sacrifice your weekend. They believe that they are entitled to these services because they are an employee.

Does Not Say “No”

These managers are difficult to classify as bad or good managers because they are good for some and bad for others. For example, your boss’s boss asks for a presentation due next week. He might know that it is impossible to give it to him by the deadline but commits anyhow. Overpromising and the inability to say “no” increase your workload. Such a boss can be huge trouble sometimes.

Gossips

While leaders usually stay out of politics within the department, some enjoy the gossip. Your toxic manager may indulge in office gossip, leading to miscommunication and trust issues. It is preferable to avoid giving personal information to employers who do not respect your privacy.

Over-Dependent

Managers who lack clarity are more liable to over-dependence on their employees. They might look to their team to perform the tasks independently without proper guidance. The lack of direction in the team may cause distress and failure to meet deadlines.

Fails to Resolve Conflict

Affiliate leaders are well-known for their ability to resolve conflict and promote harmony within the company. But, your manager might not have the same mindset and fail to resolve conflict among team members. Prolonged resentment within the team may lead to issues in work processes.

Poor Listening

A bad manager is not only bad at resolving conflicts but also does not listen to their employee’s concerns. The inability to listen to and understand the team’s problems discourages the team from putting their input toward the functioning.

No Team Building

The lack of listening, miscommunication, and favoritism in the organization causes problems among the workers. They do not appreciate each other’s roles and try to be among their boss’s favorites. This tug-of-war between employees disturbs the working atmosphere and lacks teamwork.

Unprofessional Behavior 

A less-talked-about crucial element of having a bad boss is unprofessional and unethical behavior. Some bosses are evil beyond the functional issues and try to hit on or date their staff. They do not only ask to date but also threaten job security and make false allegations when refused. It’s a sad aspect of working under a toxic boss.

High Turnover Rate

Before you join a company, you must check the turnover rate. The retention or leaving of employees speaks a lot about the management and the bosses. A high turnover rate within the department is a critical sign of a bad manager. Supportive managers usually make an effort to keep their employees instead of letting them go immediately.

How to Survive a Bad Manager?

Once you know the signs of a bad manager, you can beat them and survive in the environment using a few techniques. Some of the best ways to survive a bad manager include ignoring them if they say anything bad, acting like you do not understand what they mean, mentioning their mistakes to them, and improving your skills. Improving your skills will allow you to look for better jobs and get rid of this toxic atmosphere.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

Advantages of Affiliate Leadership Style

Last Updated on February 2, 2023 By Methew Harbor Leave a Comment

The most suitable word to describe an affiliate leadership style is “harmonious.” Unlike autocratic leadership, affiliate leadership does not focus on a rigid working style. Affiliate leaders work to keep their team gelled. They have excellent communication skills that enable them to resolve conflicts within the company. Affiliate leaders carry optimistic weather within them and give positive energy to the people around them. Let’s tell you further about this style and the advantages of affiliate leadership.

Table of Contents

  • What is Affiliate Leadership
  • Advantages of Affiliate Leadership Style
    • Creates Harmony
    • Improved Morale and Trust
    • Reduces Workplace Stress
    • Employees Feel Valued
    • Better Emotional Recovery
  • Characteristics of Affiliate Leadership
    • Focuses on People
    • Flexibility
    • Communication
    • Strong Moral Values
    • Continuous Feedback
  • The Bottom Line

What is Affiliate Leadership

The Merriam-Webster Dictionary defines affiliative as “Relating to the formation of social and emotional bonds with others or the desire to create such bonds.”

Affiliate leadership is one of the six leadership styles by Goleman. It is a less stern type of leadership where the focus lies on the people and their relationships within the workplace. The leaders ensure harmony and positive relations to improve job satisfaction among employees. Following this type of leadership model allows the managers to understand the concerns of the employees about each other and the organizational structure. The leaders resolve conflicts between the employees where needed. They prove to be immensely useful during a crisis when the employees look for a confidant.

Advantages of Affiliate Leadership Style

Creates Harmony

The main advantage of the affiliate leadership style is that it creates harmony among employees of one or different departments. It enables them to communicate easily and understand underlying issues. Effective communication and a sense of inclusiveness help build close-knit teams. It helps improve job satisfaction and reduces the employee turnover rate.

Improved Morale and Trust

Affiliate leaders motivate employees and build trust in them. They enable the workers to use their abilities to their best by allowing innovation and creativity. Transparency among the employees contributes significantly to morale building. Lack of innovation and decision-making in different organizational systems may cause disappointment.

Reduces Workplace Stress

An affiliate leadership structure does not push the employees to follow a specific set of rules. When the employees are under no stress working per strict instructions, they perform better. They intake the positivity around them and resonate with the same energy. The exchange of positive energy in a workplace just makes everything better instantly.

Employees Feel Valued

Employees in an affiliate leadership system feel valued because of the appreciation from their employers. The managers trust their workers and give them due appreciation for their performance. The trust and encouragement from the leader boost their confidence. They strive to work better to make their leader happy as it makes them satisfied too.

Better Emotional Recovery

Sometimes businesses face crises, and that affects everyone. However, when your employees play an active role in sharing ideas and making decisions, they feel responsible for it. The knitting and gelling between the teammates come into play in these situations. They realize the problems the company is facing and own them. An affiliate leader informs them that the team can get over it together. They do not blame individuals. Instead, they support their team and push them to move forward.

Characteristics of Affiliate Leadership

Affiliate leaders also have specific characteristics that distinguish them from other leadership styles. While laissez-faire also offers a rather informal leadership system, they do not primarily focus on harmony and conflict resolution. Affiliate leadership focuses on better communication and relations in the company. Other characteristics of affiliate leadership include

Focuses on People

Affiliate leaders make their employees a priority in the system. They understand and value the emotions and feelings of individuals and teams. Focusing more on the people tells them that they are important to the company and work more efficiently. As an affiliate leader, you may also remember the birthdays of your workers and ask about their families in case of crisis. Many leaders prefer team dinners and lunches to celebrate milestones with their employees. Focusing on people is the fundamental characteristic of the affiliate leadership style.

Flexibility

Many employees do not like coercive or authoritative leadership styles because they do not offer flexibility. Alternatively, the affiliate leadership style focuses on flexibility to ensure harmony in the company. This kind of leadership has a high level of trust, resulting in better flexibility within the organization. Affiliate leaders do not hesitate to change or bend the rules a little for the employees. Their goal is not to bind the employees to particular guidelines but to allow freedom and innovation.

Communication

No affiliate leader can be successful without effective communication skills. When you are responsible for resolving content and promoting harmony, you must try to communicate with both parties. Any miscommunication can wipe away all your efforts and give rise to further issues. Building bonds also improve communication within the department and with others.

business meeting

Strong Moral Values

Strong moral values are an essential trait of a good human, but they are also critical for affiliate leaders. An affiliate leader must have strong moral values to differentiate the good from the bad conduct in the company. They have to make sure that unethical behavior is discouraged in the beginning to avoid complications. The affiliate leadership style focuses highly on empathy and understanding. As a leader, you must be able to open up to your employees in a friendly manner, so they confide in you for their problems.

Continuous Feedback

If you wonder what makes an affiliate leader successful, providing feedback to your employees matters significantly. This exhibits your knowledge and interest in the employee’s behavior and progress. Offering positive criticism and appreciation to the employees also promotes cooperative behavior.

The Bottom Line

Affiliate leaders are among the most liked managers in an organization. They work to knit the team together by resolving conflicts and improving communication. One of the most fundamental advantages of the affiliate leadership style is a morale and confidence boost in the employees. Affiliated leadership managers possess strong moral values to sort the issues adequately. This leadership style focuses on people and makes them feel valued. Appreciated employees give their best and understand the position of their managers as well.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

Advantages and Disadvantages of Strengths-Based Management

Last Updated on February 4, 2023 By Methew Harbor Leave a Comment

As they say, “do what you love and love what you do.”

However, not everyone gets the opportunity to do what they love. The managers often do not let the employees love what they do because of their behavior.

According to a survey by Gallup, managers do not appreciate their employees’ strengths and try to fix their mistakes instead. The reports show that only one out of three employees say that they have the freedom to perform what they excel at.

Another study shows that strength-based management improves the organization’s engagement and productivity.

Let’s tell you about the advantages and disadvantages of strength-based management in detail.

Table of Contents

  • What is a Strength-Based Management Approach?
  • Core Principles of Strength-Based Approach
    • Everyone has Potential
    • We Become what we Believe in
    • Your words Determine your Reality
    • Change is Necessary
    • Better Relationships Lead to Positive Changes
    • Every Individual is the Author of their Story
    • Begin with Acknowledgment
    • Change has no Shortcut
    • Change is Inclusive
  • Advantages of Strength-Based Management
    • Improved Skills
    • Increased Productivity
    • Less Time Consumption
    • Builds Self-Esteem and Confidence
    • Higher Engagement
    • Better Mental Health
    • Less Turnover Rate
  • Disadvantages of Strength-Based Management
    • No Scientific Evidence
    • Increase in Competition
    • Over Confidence
    • Ignores Weaknesses
  • The Bottom Line

What is a Strength-Based Management Approach?

A strengths-based management approach considers the employee’s strengths over the weaknesses. This management system does not ignore shortcomings but assigns tasks based on the worker’s strengths. When the managers focus on the employee’s strengths, the team works on their weaknesses to turn them into strengths.

Core Principles of Strength-Based Approach

The definition of a strength-based approach gives nine guiding principles that act as the backbone and guiding practice.

Everyone has Potential

One of the main characteristics of the strength-based approach is that limitations do not define a person. Each team member has strengths and capabilities that differentiate them from others.

We Become what we Believe in

Strength-based management encourages seeing challenges as opportunities. Such leaders, like coaching leaders, push their teams to take on challenges and believe in their potential.

Your words Determine your Reality

One of the most common issues with traditional coercive leaders is their choice of work. They do not care about using bad language with their employees to get the job done. Modern leaders opt for a friendlier approach and use thought-out words to motivate their teams.

Change is Necessary

Changes are critical in any transformational leadership to change the way people think and behave. It allows them to improve and do better in their jobs.

Better Relationships Lead to Positive Changes

When people trust in their management, they change per needs. They are ready to accept challenges and do their best to succeed. On the contrary, unsupportive management cannot bring the best out of its people.

Every Individual is the Author of their Story

One of the nine guiding principles contributing to the advantages and disadvantages of strength-based management is understanding by the management. You must understand that each person creates their own story. You may guide them but do not shape them.

Begin with Acknowledgment

Begin the change and strength-based approach by acknowledging what the person already knows. They may be more willing to take on challenges relating to what they are familiar with.

Change has no Shortcut

It suggests that there is no single method for change. It is a journey and process with several steps. It requires patience and flexibility.

Change is Inclusive

When you are working to bring changes in an organization through a transformational or strength-based approach, it must be inclusive. The leaders should inform the team of the expected changes and discuss how to cope with them.

Advantages of Strength-Based Management

Improved Skills

Improvement in skills and job roles of the employees is among the most prominent advantages of strength-based management. It gives them the confidence to explore different domains and expand their skill set. Highlighting your employees’ natural abilities pushes them to give their best and take on new job roles faster. This approach gives rise to better leaders for the future with better hard and soft skills.

Increased Productivity

A positive environment in the organization always allows the employees to be more productive. Another survey by Gallup also suggests that employees working on areas of their strength are 7.8% more productive. When the teammates learn new skills and take up challenges, they perform better and give improved results.

Less Time Consumption

Many managers often focus more on fixing the weaknesses of the employees than strengthening their skills. However, enhancing and utilizing existing skills takes less time than fixing imperfections. Often employees do not cooperate with the management, resulting in time wastage. Thus, it is better to focus on the skills and abilities of your team and work to improve them.

Builds Self-Esteem and Confidence

Strength-based management helps build self-esteem in the company. It also improves emotional intelligence and teamwork in the organization. The workers believe in their skills and abilities, which gives them the confidence to believe in themselves.

Higher Engagement

Every department in a functional organization performs a specific function. The tasks are divided among different team members. The division of tasks among the team members according to their expertise and area of interest brings them together to accomplish goals. It keeps everyone in the team engaged and offers better solutions utilizing their strengths. Reports show that the strength-based approach engages double the employees as the average engagement of 30% in the US.

Better Mental Health

Mental Health

The strength-based approach focuses on the team members’ strengths but does not drain them. Employees feel less stressed, upset, and tired when the right strategies for strength-based management are used. One method is not to keep them working for hours continuously if you want to adopt a strength-based approach in your organization, ensure not to burn out your employees.

Less Turnover Rate

Helping employees improve the skills they feel confident about instills trust in them. It enables the team members to contribute to organizational success in the best possible way. Happy employees do not leave your company to move to another.

Disadvantages of Strength-Based Management

No Scientific Evidence

There is no scientific evidence regarding employees in a strength-based management company. While different studies suggest that people in a company work better when their managers focus on their strengths, no studies show exact results. The absence of scientific backup does not mean this approach is ineffective.

Increase in Competition

This management approach allows employees to identify their strengths and improve them further. It drives a sense of competition among peers as well as the higher personnel. However, it may become a disadvantage of strength-based management when the executives see the juniors as a threat. They might think the juniors will become experts and take over their position.

Over Confidence

Overused strengths have the tendency to become toxic in the long run. Team members who work hard on their skills believe that the company cannot survive without them. This overconfidence can lead to unreasonable demands and issues within the organization. The managers might not realize when some of their teammates become toxic because of their overconfidence.

Ignores Weaknesses

The suitable strength-based management approaches make sure that you do not ignore the weaknesses of your employees. Sometimes the leaders entirely focus on their strengths without understanding how their shortcomings can hinder their progress. Successful strength-based management highlights and improves the string points without neglecting the weaknesses.

The Bottom Line

The advantages and disadvantages of strength-based management depend on how you implement the system. It can help boost productivity, increase engagement, improve skills in less time, and reduce turnover. Alternatively, you may neglect the weaknesses of your team workers leading to overconfidence and a sense of competition. Thus, it is essential to apply strength-based management considering the guidelines to get the best out of it.

Tom Ruth mentions, “If you focus on people’s weaknesses, they lose confidence.” So, focus on their strengths and see how it facilitates organizational growth.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

Disadvantages of Affiliative Leadership Style

Last Updated on January 27, 2023 By Methew Harbor Leave a Comment

Affiliative leadership is considered one of the best leadership styles. Apart from people who have been working in an autocratic leadership environment, almost all employees prefer affiliative leadership. Affiliative leaders do not consider themselves the only authority and allow the team to participate in conversation and brainstorming sessions. It creates a sense of responsibility and increases the team’s morale. However, this leadership style also comes with a few cons and challenges. The leader and the team may face problems sometimes, like all other leadership styles. Sometimes, these leaders may be more lenient than needed or avoid confrontation to keep the atmosphere friendly. This can lead to problems in the long run.

Keep reading to understand all the disadvantages of the affiliative leadership style. But first, let’s tell you briefly about this leadership style.

Table of Contents

  • What is the Affiliative Leadership Style?
  • Disadvantages of Affiliative Leadership Style
    • Overlooking Underperformance
    • Reduced Productivity
    • Lack of Leadership
    • Avoiding Conflict
    • Complacent Team Attitude
    • Deviation from Company Mission
    • Avoiding Uncomfortable Situations
    • Difficulty in Managing Complex Problems
    • Emotional Dependence on Leader
    • Bad Choice for Transformational Changes
  • How to be an Effective Affiliative Leader?
    • Be a Life-Long Learner
    • Offer Constructive Criticism
    • Do not Avoid Conflict
    • Track Employee Performance
    • Share Goals Clearly
    • Watch their Body Language
  • The Bottom Line

What is the Affiliative Leadership Style?

Affiliative leaders focus on the employees within the team and maintaining healthy relationships within the department or organization. Thus, the main interest of affiliative leadership is to create a friendly atmosphere instead of being overly strict. It enables the team members to give their suggestions and improve functioning through feedback.

Affiliative leadership can be defined as a people-first approach to creating and sustaining a harmonious environment. These leaders make sure to get tasks done through teamwork and build emotional connections and bonds within the team. It helps the leaders avoid conflict among employees and solve problems within the team easily. The leader also connects to every employee personally to develop meaningful relationships that do not seem fake.

These leaders become friends with their subordinates or team to prevent communication barriers. Yet, these characteristics of affiliative leaders can sometimes be more harmful than good for the organization and the team. The team members might not realize that they still have to consider the orders of their leader. Eventually, these leaders may also overlook underperforming employees to avoid confrontation. It can lead to significant problems for the company in the long term.

Let’s tell you about all the disadvantages of the affiliative leadership style in detail.

Disadvantages of Affiliative Leadership Style

Overlooking Underperformance

Overlooking underperformance is a major problem in affiliative leadership that exhibits their conflict-avoiding attitude. It can sometimes be difficult to manage underperforming employees as leaders. Most underperforming team members come up with excuses that the managers and leaders might not be able to question further. Affiliative leaders avoid such situations by avoiding confrontation with low-productive employees.

Reduced Productivity

Most teams run under affiliative leadership have one or two underperforming employees. But, the leaders avoid confrontation and let them be as they are. The other team members observe this and wonder why they are putting in the extra effort. There is a high chance that other team members will also become unproductive when the low-performing employees go unnoticed. Thus, affiliative leaders need to be more attentive and straightforward without being rude to their team.

Lack of Leadership

Talking about a leadership style, it does not really make clear sense how there could be no leadership. Right? But it is so in the case of leadership styles that are not centralized. Sometimes, the team members take up leadership and make decisions without consulting the leaders. This leads to issues within the team when one or some of the team members start dictating orders to others. The affiliative leadership style does not work well for employees who need constant constructive feedback to perform well.

Avoiding Conflict

As mentioned above, affiliative leaders focus on creating relationships and bonds between team members to avoid conflict. The primary reason is to prevent conflict in the team or department because they are not the best at handling conflict. Affiliative leaders avoid dealing with conflict and prefer if the team members sort out the issues on their own. Confrontation is one of the aspects of leadership these leaders dread. Eventually, they may also ignore underperforming employees as mentioned earlier.

Complacent Team Attitude

Almost all leadership workshops tell you to provide positive feedback to the team members and tell them how they are an important part of the team. But, like everything else, excess praise can also be detrimental to work. When the leaders keep telling their team how they are amazing at what they do, the team does not find gaps in their skills. Another approach is the complacent attitude leading to halted growth. The team members stop learning to improve themselves and may be left behind. When the employees think they have reached their high of working in an organization, they may also move to another company.

Deviation from Company Mission

Sometimes affiliative leaders are so concerned about the welfare of their team that they forget the mission and vision they are working towards. Their team becomes their main focus, and the leadership puts efforts into their team instead of company welfare. While they might not see or understand it initially, it begins to show eventually. Their team also ignores the big picture and only focuses on solving problems that arise within the group. It restricts their ability to see how their performance is impacting company operations.

Avoiding Uncomfortable Situations

Similar to their efforts to provide negative or constructive feedback, these leaders also avoid other situations that make them uncomfortable. Besides focusing on the relationship and emotions in the team, affiliative leaders also care for their feelings. When they provide an easygoing atmosphere to the team, they also want to feel happy at the end of the day. So, they tend to avoid situations that would cause discomfort to them. It may build irritation in the team when the leaders avoid the problems that have been pointed out by the team.

Difficulty in Managing Complex Problems

Affiliative leaders are not adept at solving complex problems as they require the accountability of the team members. Usually, these leaders offer positive feedback to keep the morale high in their teams. Yet, besides offering positive feedback, they eliminate constructive feedback. When the problems are not fixed in the initial stages through constructive feedback, they keep growing. The leader’s inability to deal with complex issues can cause serious problems for the team as well as the company.

Emotional Dependence on Leader

As the leader acts as a bonding gum between the team members to keep them gelled, the team might start depending on the leader for emotional support. They might be unable to give their best in situations where the leader is unavailable to support the team. Conflicts may arise, and things may fall because of the unrealistic emotional dependency on the leader.

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Bad Choice for Transformational Changes

Some companies undergo revolutionary changes when they merge with another company or are acquired by different management. It is challenging for everyone to adjust to a new environment immediately. But, the dependency of employees on affiliative leaders adds to the trouble. Their team members do not welcome the change and try to run away from it. They are more resistant to changes and do not want to work under another leader.

Now that you know all the disadvantages of affiliative leadership, it is time to learn how to avoid these problems and be an effective affiliative leader.

How to be an Effective Affiliative Leader?

Be a Life-Long Learner

The first step to being an effective leader is becoming a life-long learner. When people get leadership roles, they believe they know everything they should know. With changing times, leaders also need to improve their working methods and efficiency to avoid problems within the team and organization. However, a lack of learning attitude may prevent them from being effective leaders. Thus, you must be open to learning new techniques and strategies to lead your team better.

Offer Constructive Criticism

Affiliative leaders are more focused on giving positive feedback to keep the team motivated all the time. Yet, sometimes, it leads to uncommunicated issues in processes that should have been addressed in time. Affiliative leaders should focus on providing constructive feedback so the employees can fill in gaps that can cause trouble later.

Do not Avoid Conflict

Typically, it is better to avoid conflict within the team by creating a harmonious and positive environment. But, it is also important to face conflict when it arises within the team. Be confident in your abilities and confront the team members when needed without thinking twice. These conflicts may keep growing and impact the relationship between the employees.

Track Employee Performance

One of the reasons why employees like working under affiliative leadership is that these leaders typically tend to overlook underperforming employees. To be an effective leader, make sure to track the progress of all employees and discuss it with them. When you ignore underperforming employees, other team members get the message that it is okay not to give the required input. Monitoring employee performance will let them know that you will not put up with consistently low-performing employees.

Share Goals Clearly

Affiliative leaders must communicate clearly and share the goals with their team. When you share the mutual goals the team needs to work towards, they trust you and are motivated to work to achieve the goal efficiently. Make sure to communicate the aim of the team as well as the mission and vision of the organization.

Watch their Body Language

Your team members might come up with excuses for confrontation about their idle behavior. You can judge their honesty and integrity by analyzing their body language to see if they are telling the truth. Their body language when working in the team also shows how seriously they take their work.

The Bottom Line

Affiliative leadership is one of the most powerful leadership models that has its strength in feedback from the team. It offers creativity and leadership-within-leadership while creating friendly relationships between employees. However, there are also a few disadvantages of affiliative leadership. These leaders tend to overlook underperforming employees, leading to reduced productivity.

Furthermore, they may promote complacency, avoid conflict, prevent transformational changes, and increase emotional dependence on the leader. However, you can avoid these situations by learning strategies to help you to be an effective affiliative leader. Affiliative leaders share the goals with the team and deal with conflict where needed. Ask for suggestions and provide constructive feedback when needed.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

Advantages of Matrix Organizational Structure

Last Updated on January 27, 2023 By Methew Harbor Leave a Comment

Companies usually follow a centralized or decentralized organizational structure. Yet, sometimes organizations also adopt the matrix system. The matrix system pushes the team to work towards their goals more efficiently as they report to more people. It allows the managers to keep in touch with the teams and their members.

The matrix structure has disadvantages but still, it is more suitable for interconnecting different departments and having them on board about company activities. Let’s tell you all the advantages of matrix organizational structure to know why big names like Starbucks use the matrix system.

Table of Contents

  • What is Matrix Organizational Structure?
  • Components of a Matrix Organizational Structure
  • Advantages of Matrix Organizational Structure
    • Inter-Departmental Harmony
    • Flexibility
    • Steady Flow of Information
    • Less Time Consumption
    • Efficient Use of Human Resources
    • Adaptation Per Need
    • Consistent Functional Roles
    • Employee Growth
  • The Bottom Line

What is Matrix Organizational Structure?

The matrix organization is a fusion of functional and project management systems. It consists of an organizational structure where the employees report to multiple people simultaneously. It comprises a functional and a project manager. The project and functional managers supervise members of the same team. It enables the functional manager to have details of each project at the root level. Having a matrix organizational structure also gives insight into each employee’s performance.

Components of a Matrix Organizational Structure

The two fundamental components of a matrix structure are a functional manager and a project manager.

  • The functional manager oversees the horizontal structure according to the department. They represent the traditional organizational structure.
  • The project manager manages a cross-functional team. It is usually a different team for each project with representatives from each department.

In a matrix organizational system, these hierarchy systems work side by side. It gives equal, more or less opportunity to both according to the type of matrix structure.

Advantages of Matrix Organizational Structure

Inter-Departmental Harmony

A matrix system brings different skilled and experienced workers together for a particular project. It improves communication between different departments and allows them to communicate openly. As more companies move towards specialized job roles, employees from different departments form a team. Employees from varying departments trust each other’s abilities under the functional and project managers.

Flexibility

Besides specialized jobs, the matrix system allows workers to perform different tasks in a project. While the right people perform the right task, they also get an opportunity to understand the working of other departments. This encourages the employees to give their input on the project based on previous experiences. You may also utilize a specialized person for another task per need as they understand the working through matrix system.

Steady Flow of Information

The flow of information is more efficient and quick when it goes both horizontally and vertically. It also prevents miscommunication as the employees report to two managers at once. All the team members are in the loop about the process and status of tasks.

Less Time Consumption

One of the most significant advantages of matrix organizational structure is how it speeds up the process. Communication between departments and the higher hierarchy makes the process quicker. Every person within a team performs the assigned task and reports to the managers. They command the next step to avoid hindrance in the process.

Efficient Use of Human Resources

When the employees are flexible and understand the process of different departments, they can be used more efficiently. The employees can be used in another domain if required. This saves you from hiring a new workforce for a short period.

Adaptation Per Need

The matrix system is of three types; weak matrix, strong matrix, and balanced matrix system. Each of them gives different authority to the functional and project managers. Organizations may choose from one of these according to their need for every project.

Consistent Functional Roles

This system combines functional and project roles. While the project roles may end with the project, the functional roles stay consistent. The team may participate in other projects. Thus, it provides better job security to the employees.

Employee Growth

Working in a diversified environment in various projects enables the employees to learn more skills. They can utilize these skills in their job role or participate in other projects. It provides growth opportunities to the employees while excelling in their respective fields meanwhile.

The Bottom Line

The matrix system is a combination of functional and project management. In such a system, the members of each project team report to the functional and project managers. The advantages of a matrix organizational structure include less time consumption, open communication, flexibility, and choosing the right structure. It also empowers the employees by securing their jobs in functional roles and enabling them to acquire new skills.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Management

10 Reasons why you Should Use Your PTO

Last Updated on January 17, 2023 By Jason Obrien Leave a Comment

PTO (or paid time off) is a critical part of any company’s benefits package. It provides employees with a much-needed break from their day-to-day job duties and allows them to get away from the office, relax, and recharge. PTO can also be used to travel, volunteer, attend personal events, and more.

While it may be tempting to put PTO off until later in the year, it is important to use it regularly. Here are 10 reasons why you should use your PTO:

Table of Contents

  • Improved Well-Being
  • Quality Time with Family and Friends
  • Personal Development & Growth
  • Travel Opportunities
  • Increased Job Satisfaction
  • Opportunity to Network
  • Improved Productivity
  • Improved Mental Health
  • Increased Happiness
  • Improved Work-Life Balance
  • Conclusion

Improved Well-Being

Taking time off from work can improve mental and physical health by reducing stress and fatigue. It also allows for more balance between work and leisure activities, which can help reduce burnout and increase productivity when you return to the office.

Ways PTO Improves Well-being:

  • Improved concentration
  • Reduced stress and fatigue
  • Increased creativity

Quality Time with Family and Friends

Scheduling time away from work allows for quality time to be spent with family and friends. Whether it’s a weekend getaway or a day devoted to doing something special together, PTO gives you the opportunity to strengthen relationships and create lasting memories.

When you use your PTO for quality time with family and friends, you can:

  • Spend more time with loved ones
  • Catch up on conversations that have been put off
  • Enjoy activities together as a family or group

Personal Development & Growth

PTO is a great opportunity to invest in yourself. Use it to pursue hobbies and interests, visit a museum or art gallery, attend workshops and lectures, and more. Taking time away from the office to focus on personal growth can help increase motivation, creativity, and productivity when you return.

PTO solutions for Personal Development & Growth:

  • Take a class or workshop
  • Attend an event related to your field
  • Go on an adventure to explore a new place

Travel Opportunities

PTO is the perfect time for travel, whether it’s for business or pleasure. It allows you to get away from the office and explore the world, while also gaining new experiences, learning about different cultures, and making new connections.

Travel Opportunities provided with PTO:

  • Visit family or friends in other cities or countries
  • Take a road trip to explore nearby attractions
  • Attend conferences or other professional events
Travel Opportunities

Increased Job Satisfaction

Having job satisfaction is key to maintaining a work-life balance. Spending some of your PTO to do something you enjoy can make work more enjoyable when you return. It also shows your employer that you value your job and are committed to doing it well.

Ways PTO Increases Job Satisfaction:

  • Take time off to do something fun or relaxing
  • Use vacation days for volunteer opportunities
  • Take a mental health day and practice self-care

Opportunity to Network

Using your PTO to attend industry events or conferences is a great way to network with other professionals in your field. This can open up new career opportunities and increase job satisfaction.

Networking Opportunities with PTO:

  • Attend local networking events
  • Connect with professionals on social media
  • Participate in online or in-person industry events

Improved Productivity

Taking regular time off can help you come back to the office feeling refreshed and ready to work. Being away from the day-to-day stress of your job can also help spark new ideas and give you a fresh perspective on projects.

Ways PTO Improves Productivity:

  • Schedule time off to recharge and refresh
  • Take a mental health day to reduce stress and anxiety
  • Prioritize tasks and set personal goals for the week ahead

Improved Mental Health

Regularly taking time away from work can help reduce stress, anxiety, and depression. It allows you to have time for yourself to relax and unwind, practice self-care, and engage in activities that make you happy.

Ways PTO Improves Mental Health:

  • Take a break from work to do something enjoyable
  • Spend time outdoors or practice mindfulness
  • Connect with family and friends for social support.
mental health

Increased Happiness

Taking a break from work can help improve your mood and increase happiness. Studies have shown that taking regular vacations can reduce the risk of depression and other mental health problems. It can also help improve overall well-being and life satisfaction.

Ways PTO Increases Happiness:

  • Spend time doing activities that you enjoy
  • Take a vacation to explore new places or try something new
  • Learn a new skill or hobby.

Improved Work-Life Balance

Having a healthy work-life balance is essential for long-term success and well-being. Spending time away from work can help reduce stress, increase productivity and boost job satisfaction. It also allows you to have more time to spend with family and friends, engage in hobbies or activities that make you happy, and practice self-care.

Ways PTO Improves Work-Life Balance:

  • Take regular breaks throughout the day to stay focused and productive.
  • Schedule time off in advance to plan ahead.
  • Use vacation days for activities that will improve well-being.

These are just a few of the benefits that can come with taking advantage of your paid time off. Taking regular time away from work allows you to rest, recharge and reconnect with what matters most in life.

It can help improve your physical and mental health, increase job satisfaction, and provide opportunities to network and explore new places. So use your paid time off to prioritize your well-being and create a better work-life balance.

Conclusion

Paid time off is an important benefit that can help improve job satisfaction, productivity, and overall well-being. Taking regular breaks from work can reduce stress, increase happiness, and provide opportunities to network and explore new places. So don’t forget to make the most of your paid time off by taking advantage of all the benefits it has to offer.

Whether you use it to rest, recharge, or explore new opportunities, taking time away from work can help improve your physical and mental health and provide a better work-life balance. Use your PTO to prioritize self-care and create the life you want to live.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

Filed Under: Management

How a Virtual Mailbox can Declutter Your Life? 15 Ways

Last Updated on January 17, 2023 By Jason Obrien Leave a Comment

A virtual mailbox can help declutter your life in many ways. Managing day-to-day mail and other correspondence is made much easier with a virtual mailbox. It makes it easier to stay organized, track important documents, and save time. Here are some ways how a virtual mailbox can declutter your life:

Table of Contents

  • Digital Access
  • Mail Forwarding
  • Scanning Services
  • Storage
  • Junk Mail Reduction
  • Automated Reminders
  • Email Notifications
  • Billing Management
  • Security
  • Automation
  • Paperless Storage
  • Improved Organization
  • Automated Receipts
  • Time Savings
  • Document Archive
  • Conclusion

Digital Access

A virtual mailbox provides you with access to all of your mail online. You can view, manage, and organize all of your mail information from one place.

It also offers secure access to your mail and other documents, so you know it’s safe. There are various virtual mailbox software solutions that provide a secure way to access and manage mail.

So, it could be difficult to choose an ideal mailbox. For this purpose, try to read reviews about virtual mailboxes and select the best one that suits your needs.

For instance, you can search anytime mail box review and learn what actual users say about this mailbox.

Mail Forwarding

A virtual mailbox provides you with the ability to forward mail from your current address to another location. This allows for more flexibility and convenience when it comes to receiving your mail.

Mail forwarding also means you can keep your current address while traveling, so that all of your mail is still delivered to the same place.

Scanning Services

Many virtual mailbox services offer scanning services that allow you to view, download, and store digital copies of your mail. This is an effective way to declutter your physical mailbox and keep track of important documents without having to store them in a physical location.

It also allows you to access important documents from anywhere, anytime.

Storage

Many virtual mailbox services offer storage options so that you can store documents, packages, and other items safely and securely. This helps to free up space in your home or office and makes it easier to keep track of important items.

Virtual mailbox storage is a great way to declutter your life and manage important documents in one place.

Junk Mail Reduction

A virtual mailbox can help reduce the amount of junk mail you receive. By using a virtual mailbox, you can easily manage what types of mail are sent to you and filter out unwanted solicitations.

Virtual mailbox services are usually equipped with advanced filters, so you can keep track of what type of mail is sent to your inbox and block any unwanted solicitations. This helps to reduce clutter and save time.

Automated Reminders

A virtual mailbox service might also offer automated reminders that let you know when important documents or packages need to be signed for or collected. This helps to keep you organized and ensures that important tasks are completed in a timely manner.

Email Notifications

A virtual mailbox service can also send you email notifications when mail is received or sent out. This helps to stay on top of all your correspondence, remind yourself of important tasks, and respond quickly to emails.

man using a laptop

Billing Management

A virtual mailbox makes it easy to manage your bills and other financial documents. You can view, track, and pay bills online with the help of a virtual mailbox.

It also allows you to store documents securely and create notifications for when bills are due.

Security

A virtual mailbox provides an additional layer of security that helps protect you from identity theft and fraud. All activities are monitored closely and sensitive information is kept secure.

This mailbox also helps to protect your privacy by keeping your personal information from being exposed online.

Automation

A virtual mailbox makes it easy to automate repetitive tasks such as sending out thank-you notes or forwarding mail. This simplifies the process and saves time so you can focus on other important tasks.

Paperless Storage

A virtual mailbox helps keep paper clutter to a minimum by enabling you to store your mail digitally. You don’t have to worry about storing paper documents or taking up space in your home with file cabinets and folders.

Improved Organization

A virtual mailbox makes it easier to stay organized. With digital access, you can easily organize and categorize your mail in order to quickly find what you’re looking for. It also makes it simple to keep track of important documents and find them quickly when needed.

Automated Receipts

Have all incoming mail scanned and made available to you as soon as it arrives. Never worry about missing important documents or having them lost in the shuffle.

It also means that you’ll never forget to save receipts or tax documents ever again.

Time Savings

With a virtual mailbox, you don’t have to wait in line at the post office or run around town picking up packages. You can access your mail from anywhere with an internet connection.

Virtual mailbox services make it easy to manage your mail in a fraction of the time.

Document Archive

Store all of your important documents in a secure online archive so you can retrieve them anytime you need them. Virtual mailbox services make it easy to keep all of your documents organized and accessible.

A virtual mailbox can help you stay organized and declutter your life. By using a service like this, you can simplify your mail management and enjoy the convenience of digital access to all of your important correspondence.

These are just a few of the ways how a virtual mailbox can help declutter your life and make it easier to stay organized. If you are looking for a way to simplify managing your mail and other correspondence, consider investing in a virtual mailbox.

Conclusion

A virtual mailbox can help you stay organized, declutter your life, and save time. It provides you with digital access to all of your mail information and allows you to easily track important documents, automate payments, and simplify shipping.

With a virtual mailbox service, managing day-to-day mail is made much easier and more efficient. So, why not give it a try and see how it can improve your life?

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

Filed Under: Management

4 Payroll Frauds Your Business can’t Afford to Ignore

Last Updated on January 16, 2023 By Jason Obrien Leave a Comment

It is almost inevitable, given that large amounts of money are regularly being received and transferred out, that payroll systems and processes can be subject to potentially fraudulent activity, both from within an organisation and from without. It can be perpetrated both by employees and employers alike, as well as outsiders with no connection to an organisation.

The way in which payroll processes are set up and organised, plus the fact that a large number of people can have access to payroll systems (especially in enterprises with large numbers of employees and/or contractors based in multiple jurisdictions around the world), are also significant contributing factors as to why payroll is regularly subject to attempted fraud.

In particular, this is why global payroll, i.e., when you engage and pay people in multiple locations simultaneously, can be susceptible to fraud, simply through the fact that it is often very decentralised, with teams in different locations operating without appropriate oversight or auditing. Not having up-to-date fraud prevention and detection systems in place can also encourage fraud both from within and without.

This can be exacerbated in cases where payroll processes are carried out to a large extent manually or using basic payroll software packages. Paper documents can be easily forged, stolen, altered, or lost, for instance, while it can be challenging to control access to physical or unsecured documents and data, especially in small in-house teams located away from central admin services.

Automated payroll services can, however, go a long way toward mitigating such risks.

Table of Contents

  • How is Payroll Fraud Committed?
    • Onboarding
    • Identity Theft
    • Payments
    • Payroll

How is Payroll Fraud Committed?

Essentially, there are four key areas where frictions are most apparent, and where organisations are most vulnerable to payroll fraud: onboarding; identity theft; payments; and payroll. However, you can reduce these risks by using payroll providers with high-standard data security.

Onboarding

One of the most common forms of payroll fraud, which is committed by employers in order to take advantage of workers, occurs during the onboarding process.

In this scenario, employees are not classified correctly and so may not receive the appropriate rate of pay and workplace benefits to which they are entitled, as well as not paying tax, superannuation, and other deductions correctly. This can have a long-term impact on employees, who because of not making sufficient contributions to social security, for instance (through no fault of their own), have difficulties claiming a pension or other state benefits later in life.

This type of fraud is often committed by employers as a means of saving money on payroll taxes and employee benefits and can go undetected for some time. It is a serious offence in most jurisdictions, and so if uncovered can lead to significant penalties.

Identity Theft

Employers too can be victims of payroll fraud in a variety of different ways, often involving a form of phishing or identity theft.

A common way in this sort of payroll fraud is perpetrated through the stealing (via a hack or data leak) of an employee’s personal information. A fake email, that for all intents and purposes looks as though it is coming from an employee, is then sent to the payroll department notifying it of a change in bank details and asking for subsequent pay checks to be credited to this new, bogus account. This enables the hacker to steal an employee’s wages, and then withdraw the money from the account before the fraud is detected.

Payroll managers can take some relatively simple steps to prevent this type of fraud from being successful. In the first place, all bank accounts should be validated when a new employee is taken on. Then, it should ideally be company policy that an employee’s banking details cannot be changed by HR or finance teams unless any requested change has been validated by the employee in person. In the case of remote, hybrid, or foreign workers, this should be done using teleconferencing software.

Payments

Payroll fraud can also be perpetrated against a company by its own employees, very often by those working in HR or payroll departments. Most commonly this is through the creation of what are known as ghost employees.

A ghost employee can be a non-existent person who has been created and then added to the company’s payroll, or alternatively take the form of a former employee who has left the organisation but who has been intentionally kept on the payroll as a means of defrauding the company. In both instances, the wages of the ghost employee will in fact usually be claimed by the corrupt member of staff who has falsified the records.

payment method

This type of payroll fraud can generally be gotten away with more easily in organisations that do not use a payroll provider but instead manage things in-house. It is also more likely to occur in businesses where payroll is largely managed manually with a generic software package, or in enterprises where the workforce is remote and located around the globe, making accurate record keeping more difficult.

A regular payroll audit (at least every 12 months), where employee records are reviewed and cross referenced with HR, is one of the simplest and most effective ways of preventing ghost employee fraud.

Payroll

Another similar form of payroll fraud is when the actual amount a worker is paid is deliberately altered and increased. This may be done so that the person who falsifies the records is the direct beneficiary, or they may alter records on behalf of someone else.

In this scenario, it can be that the rate of pay recorded in the system is altered so that a worker is being paid more per hour than they should be, or are paid for hours they didn’t in fact work. It might also be the case that they are falsely awarded bonuses, or receive commissions to which they are not entitled. The fraud could also take the form of deductions not being correctly applied.

In some cases, a worker could add extra unworked hours on the timesheet of their own accord without any collusion from payroll staff, or they can indulge in what is widely known as ‘buddy punching’ where a colleague punches in on the time clock on behalf of another employee who is not actually present at work.

Payroll auditing is the most effective and efficient way of discovering these and similar payroll frauds. This is because a key task in any such audit is to review the accuracy of all employee records, especially rates of pay. Any changes should have been recorded when they occurred and why, so anomalies between what a worker is receiving and what they are actually entitled to can be easily spotted.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

Filed Under: Management

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