Photo AI
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 assumes that decision-making is best kept with managers, who will direct subordinates with little consultation.
This leadership style may suit fast-paced business environments like those in the fast food sector, where high customer service is an expectation and staff might not have the experience to answer questions or make decisions independently.
Given that Hot Chip is a new business in a competitive landscape, an autocratic approach could provide the necessary structure and clarity for staff, particularly during the initial stages of the business. This can help in managing high staff turnover, a common issue in the fast food industry, as new staff may require significant direction.
Thus, an autocratic style could ensure that the owners manage effectively and maintain consistent service quality as they establish their brand.
Step 2
Option 2: Democratic Leadership
Answer
Democratic leadership engages employees based on majority opinions, which encourages consultation and collaboration.
For Hot Chip, a democratic approach might foster inclusivity, improving morale and retention by making employees feel their input is valued, particularly in a market where high staff turnover is prevalent. This leadership style could help managers gain insights into customer preferences and operational efficiencies, enhancing customer service.
Moreover, as the business evolves, such involvement may enable staff to contribute to decisions that directly affect their roles, potentially leading to improved performance over time. If Hot Chip is to establish a unique product, fostering teamwork through a democratic style could be very effective.
Step 3
Recommendation
Answer
In conclusion, while both leadership styles have merits, democratic leadership may be the most suitable for Hot Chip in its early stages.
This approach can help establish a supportive culture that values employee input, ultimately fostering a positive work environment that could enhance customer service and business performance. Though an autocratic style may provide short-term clarity and visibility in operations, the long-term benefits of democratic leadership—such as improved employee satisfaction and retention—could outweigh immediate control needs as the business aims for sustainable growth.