Autocratic Business Leadership In A Recession
This essay will address the question of whether the autocratic style of leader is the best type to have in an economic recession. After giving a definition of what an autocratic is, and what an economic recession entails, the reasons why this is the best style of leadership will be addressed. The points in favour to be examined will be; that quick decisions are reached, there is efficiency, a clear chain of command and a lack of sentimentality. Also, one good example of an autocratic leader will be included. Then the reasons why this leadership style may not be good will be looked at. These will be; the over dependency on one person, the frustration and resentment caused to the workforce and the modern trend towards employee participation in decision making. There will then be a brief look at three other leadership styles, which will lead to the question being answered as a conclusion.
An autocratic leader in business terms is a person who keeps most or all of the key authority for themself. They are very dictatorial or authoritarian and tell their employees exactly what to do. They tend not to delegate very much or share information willingly with their subordinates, and they assume responsibility for all operational aspects'.[1] An economic recession seen through the cycle of an individual business can follow this process; falling sales, intense awareness of competitors, customers becoming very price sensitive, a cut in output, making workers redundant, not implementing expansion plans, postponing capital investment and cutting under-used capital equipment.
Efficiency is a quality inherent in a successful autocrat. They will, in a recession, exploit all the resources available with no sentimentality, and as a leader they will have insured there is a minimal level of bureaucracy and middle management tiers to interfere with this. There is likely to be a high output per worker and a low level of cost per business unit...
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