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Question C
(C) Outline two styles of leadership and illustrate how each of these styles may be appropriate in different business situations. (20 marks)
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Answer
Autocratic Leadership: This style is characterized by a leader who makes decisions unilaterally, without consulting team members. Leaders dictate instructions and expect compliance. While this can provide quick, decisive action during crisis situations, it may lead to low morale among team members who feel their input is not valued.
Appropriateness: Autocratic leadership is effective in situations requiring urgent decisions, such as during a business crisis or financial emergency. For instance, if a company faces bankruptcy, a strong directive approach can streamline actions and reduce delays, ensuring the organization can respond swiftly.
Democratic Leadership: In this style, leaders share decision-making responsibilities with team members. Feedback and ideas are encouraged, fostering a sense of trust and inclusion. However, this may result in slower decision-making as it requires consensus.
Appropriateness: Democratic leadership suits collaborative environments, like tech companies (e.g., Google), where teamwork and innovative ideas are pivotal. This approach allows team members to feel valued and engaged, which can enhance creativity and employee satisfaction.
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