Chapter 6: Leadership

Question 1

What is leadership in a business context?

Answer 1

Leadership is a management skill that encourages people to work towards a specific goal.

Question 2

What are the three main types of leadership?

Answer 2

Autocratic, Democratic, and Laissez-Faire.

Question 3

Describe the autocratic style of leadership.

Answer 3

Autocratic leaders have complete power and control. They do not consult employees in decision-making, do not trust employees, and believe employees are lazy and avoid work. They often use threats and punishment to motivate.

Question 4

What are the advantages of an autocratic leadership style?

Answer 4

Quick decision-making
• Rapid task completion
• Improved productivity due to tight control

Question 5

What are the disadvantages of an autocratic leadership style?

Answer 5

Increased management stress from handling all responsibilities
• Low staff motivation due to lack of involvement
• Potential for industrial action as employees may feel undervalued

Question 6

Describe the democratic style of leadership.

Answer 6

Democratic leaders delegate tasks to employees, involve them in decision-making, trust their abilities, and empower them to make independent decisions, which increases motivation.

Question 7

What are the advantages of a democratic leadership style?

Answer 7

• Encourages intrapreneurship
  • Develops employees’ skills, increasing chances for promotion
  • Boosts motivation as employees feel valued and involved

Question 8

What are the disadvantages of a democratic leadership style?

Answer 8

• Slower decision-making process due to consultations
  • Possible frustration if employees’ ideas are not used
  • Managers may feel a loss of control when empowering employees

Question 9

Describe the laissez-faire style of leadership.

Answer 9

Laissez-faire leaders set goals for employees but allow them to decide how to achieve them. Managers outline business objectives and trust employees to work independently without close supervision.

Question 10

What are the advantages of a laissez-faire leadership style?

Answer 10

• High employee motivation due to empowerment
  • Improved skills and knowledge as employees work independently
  • Fosters intrapreneurship within the business

Question 11

What are the disadvantages of a laissez-faire leadership style?

Answer 11

Risk of reduced productivity if employees misuse their independence
• Potential for poor decision-making by some employees
• Management may blame employees if goals are not met or mistakes are made