Business Studies

Unit 4 A level business studies leadership styles

Autocratic Leadership

Manager sets objectives

Group members are dependant on manager and are often dissatisfied with the leader

High levels of supervision, little cohesion

Needed in circumstances such as the armed forces

+ By allocating tasks there is less to query

+ Job completion focused on

- Requires lots of supervision which can be expensive

- Employees tend to be demotivated by autocratic leadership

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Democratic Leadership

Encourages employees to participate in decision making

Can be either
Persuasive > leader makes decision and encourages employees it's a good idea
Consultative > leader consults others before decision making and views are taken into account

Requires good communication skills

+ Successful as people enjoy freedom and being listened to

+ Staff are involved and feel motivated

- Decision making is slower

- Decisions have less focus

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Paternalistic Leadership

Similar to autocratic as manager makes ALL decisions

Importance is placed on the welfare of workers

No decision making power given to subordinates but what they want to happen is discussed and considered

For example building low rent houses for workers

+ Decisions have clear focus

+ Staff feel valued and put trust in managers

- Managers under pressure to make decions so may be demotivated

- Taking workers into account takes time and effort

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Laissez-faire Leadership

Allows employees to work freely within broad limits

Offers a relaxed atmosphere

Very few guildelines and directions

+ Employees may feel trusted and free and so be more motivated

+ Less supervision, lower management costs

- Can result in poor productivity as there is no incentive to work hard

- Low accountability, whose to blame if things go wrong?

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