Types of Management Philosophy

Office space with employees greeting each other
Office space with employees greeting each other (Image: Robert Churchill/iStock/Getty Images)

Management philosophies organize your business around specific goals and govern all areas of your company. Different philosophies direct each aspect of your business, including the overall organization of your company, your methods for motivating your employees, the way your company prepares for and addresses problems and your company philosophy for customer relations.

Working Toward Maximum Efficiency

This approach focuses on how a business is organized, the power structure between management and employees and the division of labor within a company. Organizational philosophies ask the question, “How should the work of your business be divided for maximum efficiency?” Organizational philosophies also specify a clear chain of responsibility. For example, the bureaucratic management style is a tiered system of management that organizes a company into specific sets of responsibilities. It divides responsibilities between managers, each with their own division of employees who work as subordinates under their manager.

Motivating Your Employees

Motivational philosophies focus on methods to inspire employees to improve performance, accept personal responsibility for their work and work toward the overall success of their company. Motivational philosophies seek to develop a work environment that promotes strong employee-driven ideals. As an example, the goal-work philosophy holds that if employees are given high goals and the knowledge of how to reach those goals, they can improve their performance and work to achieve those high goals.

Managing a Crisis

Companies use crisis management techniques when something goes wrong in their business. These philosophies focus on identifying potential dangers, planning for those dangers and responding to them with a clear goal once the problem occurs. They begin with a careful assessment of potential dangers by assessing them and suggesting methods for reducing the impact of future dangers. They then provide crisis-reaction strategies that respond to immediate dangers once they have occurred.

Understanding Your Customer Relationships

Consumer philosophies focus on the way your customer relates to your company. These philosophies include transactional marketing, relationship marketing and mixed-marketing philosophies. Transactional marketing involves large ticket items, which are expensive purchases your customers make infrequently. Relationship marketing focuses on less expensive but regularly purchased items, such as groceries, clothes or household items. As an example, a relationship-based company model requires a philosophy that considers merchandise cost, employee presentation and a history between customers and your store.

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