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Evaluate these two options and recommend which is the most suitable leadership style for a business such as Hot Chip. - Edexcel - A-Level Business - Question 1 - 2018 - Paper 1
Question 1
Evaluate these two options and recommend which is the most suitable leadership style for a business such as Hot Chip.
Worked Solution & Example Answer:Evaluate these two options and recommend which is the most suitable leadership style for a business such as Hot Chip. - Edexcel - A-Level Business - Question 1 - 2018 - Paper 1
Step 1
Option 1: Autocratic Leadership
Answer
Autocratic leadership is characterized by centralized decision-making, where managers direct subordinates with minimal consultation. This approach may be effective in fast-paced environments like Hot Chip, where quick decisions are crucial for customer satisfaction. Autocratic leadership can also be beneficial in addressing high staff turnover; it provides clarity in roles and expectations, which can be critical in the early stages of a new business. However, its effectiveness may diminish if employees feel disengaged from the decision-making process.
Step 2
Option 2: Democratic Leadership
Answer
Democratic leadership involves consulting employees and considering their opinions in the decision-making process. This style can be advantageous for Hot Chip, as it encourages open communication and allows insights into customer preferences and operational improvements. Given that Hot Chip is a new business, involving staff in decision-making could enhance employee morale, reduce turnover, and ultimately lead to better customer service. Furthermore, this approach aligns with the need for adaptability in a competitive market.
Step 3
Recommendation
Answer
Considering the context of Hot Chip as a new business facing challenges with staff turnover and the need for high-quality customer service, a democratic leadership style may be more suitable. This approach not only provides staff with a voice in the decision-making process but also fosters a collaborative environment that can improve employee retention and customer satisfaction. As the business establishes itself, integrating elements of autocratic leadership where necessary could provide additional structure.