Company Formation Owners Change Their Style

There has been much made of the adversarial management style of many entrepreneurs on the television; from Lord Sugar to Dragon Peter Jones, the media has been quick to draw comparisons between successful business people and being tough talking.

However, according to a recent report conducted by the Chartered Institute of Personnel and Development, since the economic downturn many company formation owners have made radical changes to their management style.

The results of the report revealed that an overwhelming fifty eight per of company formation owners felt that throughout the recession they needed to take the role of team member rather than dictatorial leader, in order to support and motivate their employees in the context of pay freezes and salary cuts.

Oscar Johnston, owner of retail chain ‘SOS’, comments: “The challenges the recession presented to the SME sector have been well documented. However, the challenges it posed to employees have been largely undocumented. Employees have had to deal with the threat of redundancy, pay freezes and in some instances pay cuts, consequently employers have had to become more like team members than bosses.”