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Autocratic/Democratic Leadership

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One way to explore leadership is in terms of the use of authority by the leader and the amount of freedom given to their direct reports. Clearly, as one increases the other will decrease and this will have a major impact on the way the leader leads. With this in mind, we can recognise two distinct styles of leadership:

  • Autocratic Leadership – someone who likes to centralise and control. They derive their power from their position of authority and control.
  • Democratic Leadership – someone who delegates authority, encourages participation and empowers employees. They derive their power from their personal qualities and team members’ respect.

These two leadership styles are not necessarily mutually exclusive. Skilled leaders will blend the use of authority and empowerment of their team to different degrees appropriate to the situation. Some situations, such as an emergency, require quick decision making in an autocratic style. On the other hand, there are times when a more consultative or democratic approach may be better suited, e.g. when reviewing quality initiatives.

Style
When best to use it
Strengths
Weaknesses
Autocratic
Best used in crises where decisions must be made quickly and without dissent.

Incredibly efficient – decisions are made quickly, and work gets done.

 

People resent being treated in this manner. Often leads to high levels of absenteeism and high staff turnover.
Democratic
Most suitable when working in a team is essential and when quality is more important than efficiency or productivity.
Team members have high job satisfaction and are more productive as they are involved in decisions. Staff are engaged and creativity is encouraged.
Decision-making can be slow. Hinders situations where speed or efficiency is essential. Team members may not have expertise to provide high-quality input.

It is important for you to remember that no leader can ever have total authority, since their team members can always ‘vote with their feet’. By the same token, you can never give total freedom since you remain accountable for your team’s actions.

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Syllabus BHM308

01 Organizational Strategy

  1. Mission
    1. Mission Statement Elements and its importance
  2. Objectives
    1. The necessity of formal objectives
    2. Objective Vs Goal
  3. Strategy
    1. Developing Strategies
      1. Adaptive Search
      2. Intuition search
      3. Strategic factors
      4. Picking Niches
      5. Entrepreneurial Approach

02 Environmental and Internal Resource Analysis

  1. Need For Environmental Analysis
  2. Key Environmental Variable Factors<
  3. Opportunities and Threats
    1. Internal resource analysis
  4. Functional Areas Resource Development Matrix
  5. Strengths and Weaknesses
    1. Marketing
    2. Finance
    3. Production
    4. Personnel
    5. Organization

03 Strategy Formulation

  1. Strategy (general) Alternatives
    1. Stability Strategies
    2. Expansion Strategies
    3. Retrench Strategies
    4. Combination Strategies
  2. Combination Strategies
    1. Forward integration
    2. Backward integration
    3. Horizontal integration
    4. Market penetration
    5. Market development
    6. Product development
    7. Concentric diversification
    8. Conglomerate diversification
    9. Horizontal diversification
    10. Joint Venture
    11. Retrenchment
    12. Divestiture
    13. Liquidation
    14. Combination

04 Strategic Analysis and Choice (allocation of Resources)

  1. Factors Influencing Choice
    1. Strategy formulation
  2. Input Stage
    1. Internal factor evaluation matrix
    2. External factor evaluation matrix
    3. Competitive profile matrix
  3. Matching Stage
    1. Threats opportunities – weaknesses – strengths matrix (TOWS)
    2. Strategic position and action evaluation matrix (SPACE)
    3. Boston consulting group matrix (BCGM)
    4. Internal – External matrix
    5. Grand Strategy matrix
  4. Decision Stage
    1. Quantitative Strategic Planning Matrix (QSPM)

05 Policies in Functional Areas

  1. Policy
  2. Product Policies
  3. Personnel Policies
  4. Financial Policies
  5. Marketing Policies
  6. Public Relation Policies

06 Strategic Implementation Review and Evaluation

  1. McKinsey 7S Framework
  2. Leadership And Management Style
  3. Strategy Review And Evaluation
    1. Review the underlying bases of Strategy
    2. Measure Organisational Performance
    3. Take corrective actions