Article ID Journal Published Year Pages File Type
983223 Procedia Economics and Finance 2014 8 Pages PDF
Abstract

ObjectivesIn the article we analyze how managerial style impacts satisfaction of employees and their adherence to the organization's objectives, by means of a controlled in-class experiment. Methodology: We exposed subjects to six scenarios based on combination of: (1) two managerial styles (authoritative vs. participative) and (2) three levels of manager's readiness to provide benefits for employees. Than we measured overall employees’ satisfaction and adherence to the organization's objectives. We also enacted supplementary psychometric testing (MBTI), widely used in managerial research. Results were processed: (1) Empirically, as micro case-studies; with direct managerial and pedagogic implications. (2) Statistically, using correlation analysis; bringing wider theoretical generalizations. Findings: Best managerial strategy is based on a naturally equilibrated relation between manager's authority and readiness to provide benefits. It's when the employees manifest highest overall satisfaction and adherence to the company objectives. Other interesting finding: Level of current employee's benefits does not primarily affect their overall satisfaction; low level of benefits could be outweighed by a good managerial communication strategy, and vice-versa; high level of benefits will not generate maximum employees’ satisfaction if manager does not show certain authority.ConclusionBased on the results, we suggest a new theory of “leadership triangle”, consisting in an equilibrated relation between manager's authority, respect to employees’ needs and adherence to the common objectives. This is applicable at the level of individual interpersonal communication as well as at the global organization level.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics