Page 322 - Business Principles and Management

Chapter 12 • The Manager as Leader

leader, employees usually do not make decisions about the work they perform.
When questions or problems arise, employees look to the manager to handle them.
The autocratic manager seldom consults with employees about what should be
done or the decisions to be made.
Efficiency is one of the reasons for using the autocratic style. The employees
are supposed to do the work exactly the way the manager says—no surprises.
Employees generally know what the manager expects. If they are in doubt about
what to do or how to do it, they consult the manager. The autocratic leader
believes that managers are in the best position to determine how to achieve the
goals of the organization. They also assume that workers cannot or do not want
to make decisions about their work.
Some workers prefer leaders with autocratic styles, but many do not. A major
disadvantage of the autocratic style is that it discourages employees from think-
ing about better ways of doing their work. As a result, some employees become
bored. This type of leadership may lead to employee dissatisfaction and a decline
in their work performance. Human relations problems arise, especially between
managers and employees, when managers use an autocratic leadership style
extensively. Finally, the autocratic style does not prepare employees for leader-
ship opportunities or promotion, because they do not gain experience in deci-
sion making or problem solving.
The autocratic style is effective in some situations. For example, it is often
the best style to use in emergencies. Getting out a large rush order, for example,
may not allow time for a supervisor to discuss the necessary procedures with
employees. It is much more efficient for a supervisor to give specific orders
and expect a rapid response. Managers may also need to use an autocratic
style with temporary employees, such as part-time workers hired for short
periods of time. The effective leader is one who knows when a situation
calls for an autocratic style of leadership and uses it only until that situation
is over.
Can you think of a business
DEMOCRATIC LEADERSHIP situation in which an auto-

The democratic leader is one who encourages workers to share in making cratic leader may be more
decisions about their work and work-related problems. When using the demo- effective than a democratic
cratic style, managers communicate openly with employees and discuss prob- or open leader? Explain why.
lems and solutions with them rather than merely
announcing decisions. The manager may still make
the final decision, but only after discussing pos-
sible solutions with employees and seeking their
advice. Even when a decision is not involved, the
democratic manager provides workers with assis-
tance or encouragement and offers reasons about
why certain work changes must occur. The princi-
pal characteristic of the democratic style, however,
is that it encourages employees to participate in
planning work, solving work problems, and
making decisions.
Many people say they prefer a manager who
uses a democratic style of leadership. Involvement
in planning and decision making helps employees
feel like active members of a team striving to reach PHOTO: © DIGITAL VISION.
common goals, rather than just workers putting in
their time. They are more likely to carry out plans
and decisions that they helped to create. Employees

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