Page 103 - Cambridge IGCSE Business Studies

7: Organisation and management

ACTIVITY 7.8

Work in pairs to discuss which of the three leadership styles might be the most appropriate in each of the following
circumstances. Justify your choice.

1 A business that designs and creates television advertisements.
2 A business facing a potential financial crisis.
3 A manufacturing business where workers are highly skilled.
4 A business that operates in a market where competitors are constantly changing their marketing decisions.

5 The Research and Development Department of a games software design company.

6 A large department store with several departments selling different types of goods.

Features of the main leadership styles
The main features of the three leadership styles are shown in Table 7.4.

Autocratic Democratic Laissez-faire

Objectives Set by leader without any Set by the leader, but workers Usually set by the leader with
input from workers. are oft en consulted. or without any input from
workers.

Decision-making Taken by the leader without Workers are encouraged to Delegated to workers who
any input from workers. take part, but leader still take the decisions. 101
takes the final decision.
Communication One-way, from leader to Two-way – feedback Communication is most oft en
worker. No opportunity for encouraged. upwards from subordinates
feedback. to leader. Little feedback
from manager.
Supervision of workers Closely supervised by the Leader is available to solve No supervision by leader.
leader. problems, but otherwise
close supervision is not
needed.

Availability of information Workers are given very Workers given information Workers provided with all the
limited information about the which allows them to fully information they need to take
business. participate in the business. decisions.

Motivation levels Likely to be low. Likely to be high. Could be high or low
depending on the task and
skills of workers.

Table 7.4 Main features of autocratic, democratic and laissez-faire styles of leadership

Choosing a leadership style

There is no one ‘best’ leadership style that fits every business situation. Each of the
TOP TIP
styles discussed above have their strengths and weaknesses and which one is best
Don’t just describe leadership will depend on a number of factors, including:
styles. Think about how they
might link to worker motivation ■ The skills and experience of the workforce – the more skilled and experienced
and business eff ectiveness. workers are, the less important it is for the manager to make all decisions and
supervise workers. A more democratic leadership style may be ‘best’.