Democratic - Advantages and disadvantages table in A Level and IB Business

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Created by: L157
Created on: 29-10-23 22:53

Democratic

Advantages

There is an increase in productivity as employees have more creativity and are not being constrained by supervisors.
Employees are involved in decision making processes which can make them feel more included in the company and therefore more committed and loyal to them.
There is a decrease in demotivation and turnover as employees enjoy their working conditions and feel valued in the business.

Disadvantages

Decision making processes will be more slower as employees are ncluded so there are more opinions to be considered. This can cause the business to fail in situations where immediate actions is needed.
Because employee ideas are not only listened to but alos implemented by the company, it can cause the business to fail due to decreased productivity levels etc, as employees may care more for their needs than the business.

Evaluation

A democratic leadership style can be an advantage to employees as it may work in their favour, but it can also be a disadvantage for the business as it can lead to decreased productivity levels, which reduces revenue and therefore business profits.

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