1.4 Leadership Flashcards
What is leadership
It is the ability to influence and direct people in order to meet the goals of a group
What is management
Deciding how company resources are used in order to meet the objectives of the firm
What are the key points of an autocratic leadership
Leader makes decisions without consulting others
Information is kept between senior managers
Sets objectives and allocates tasks
One way communication
Useful for quick decisions
What situation could a business be in where it’s useful to have an autocratic leadership system?
Dynamic markets and when they are struggling
What are the key points of a democratic leadership style?
Running a business on the decision of the majority
Leader consults the team but makes the final decision
Encourages participation and uses delegation
2 way communication
When is a democratic leadership style useful?
When a business makes complex decisions
Positives of an autocratic leadership
Quicker decisions
Decisions are made by senior managers who are likely to have more experience and skills
Decisions are based on what is good for the firm
Negatives of autocratic leadership
May miss out on ideas from lower level employees if leaders lack an understanding of customer needs
Lower level employees may become demotivated
May lead to conflict between leaders and other employees
Positives if democratic leadership
May lead to better ideas and innovation
Can help motivate lower level employees -> link to Maslow
Negatives of democractic leadership
Could lead to slower decisions
Leaders may make the wrong decisions or go against the majority which can lead to conflicts
Key points of paternalistic
Dictational but makes decisions for the workforce
Leader explains decisions
Communication is downwards
Considered soft
Negatives of paternalistic leadership
Relationship between leader and employees may become blurred
Staff could abuse relationship
Staff may become too reliant on the leader
Conflicts may arise when deciding between employees and the firm
What are the key points of laissez faire?
Hands off approach
Leader has a more peripheral role
Staff are given the freedom to make decisions themselves
Horizontal communication
Can encourage creative works
Positives if paternalistic leadership
Staff feel valued and looked after
Attract more high skilled staff due to good rep
Decisions are autocratic -> faster and better
Reduced backlash from decisions due to explanation
Positives of laissez faire
Staff have more autonomy in decision making could lead to innovation and better decisions from being closer to the customer
Increased staff motivation from staff feeling more valued and trusts
Can be highly effective if staff are highly skilled
Negatives of lassez faire
Some employees may lack experience can’t cope with extra responsibility and make mistakes
More freedom can lead to less productivity if abused
Lacking consistency across the firm
Employees may not want the extra responsibility
Could happen as a result of poor leadership
