BUSINESS REPORT OF MEGABUCKS LTD

Executive Summary:

The report comprehensively analyses Megabucks Ltd's commitment to environmental

sustainability and its responsibilities towards the local community. The purpose of this report
is to provide an outline of Megabucks Ltd's utilisation of a bureaucratic management
approach and to explain the impact of leadership style on the workforce. Additionally, it
discusses the results that can be achieved by implementing a democratic leadership approach.
Furthermore, it describes the importance of integrating corporate social responsibility
initiatives into the operations of Megabucks Ltd.

Demonstration of Bureaucratic Management Approach:

It has been observed that Megabucks Ltd is currently utilising a bureaucratic management
approach. Bureaucratic management entails a structured hierarchy and a chain of command
that adheres to stringent regulations and formal protocols. The autocratic leadership approach
entails top-level authorities making decisions within the hierarchy. The absence of employee
involvement in Megabucks Ltd's decision-making process suggests a restricted level of
autonomy in their work, resulting in diminished motivation and job discontentment. My
analysis shows Megabucks Ltd has a hierarchical structure with multiple levels in its chain of
command. The time required for the decision-making process is considerable.

Impact of Leadership Style on Employees:

Leadership style plays a significant role in an organisation's management and has a crucial
impact on the efficiency and output of its workforce. This, in turn, has a direct bearing on the
revenue and expansion of the business. It helps achieve business objectives efficiently by
managing employee requirements and the resources necessary to complete the task. The
former CEO had made unilateral decisions without seeking input from the workforce, leading
to employee demotivation and being undervalued. The autocratic leadership style tends to
concentrate power and control in the hands of the leader, which can result in reduced
employee empowerment. It hinders productivity, contributing to higher rates of absenteeism
and lower levels of employee job satisfaction. This results in a significant attrition rate, as
employees seek a work environment that values their contributions and fosters creativity. The
long chain of command creates communication barriers, as employees may hesitate to
express their concerns and ideas. The lack of transparent communication results in
misinterpretation of directives and reduced teamwork, ultimately impeding efficiency.
Engaging in repetitive tasks can foster a sense of stagnation, resulting in reduced motivation
and boredom. Consequently, it results in an elevated attrition rate.

Adoption of Democratic Leadership Style:

The democratic leadership style is characterised by high employee involvement and

empowerment. It actively engages employees in the decision-making process and motivates
them through recognition of their accomplishments. Research shows that fostering a sense of
inclusion among employees can positively impact job satisfaction, ultimately retaining
valuable talent. When employees feel like a part of the business, they give their best by
committing to deadlines and working overtime to meet business goals and push the business
towards success. Group discussions can be valuable in reinforcing the company's vision to
employees and promoting progress towards a shared goal. The limitations of the democratic
leadership style are that the decision-making process may be hindered by the need to obtain
validation from employees and potential disparities in viewpoints, resulting in a time-
consuming process. The success of this approach is contingent upon the willingness of
employees to contribute to the advancement of the organisation actively. It is recommended
that the new CEO consider implementing a participatory culture that involves employees in
the decision-making process. It can be done by organising group discussions to brainstorm
ideas and solutions to address business challenges. For instance, convening meetings centred
on tackling declining sales and devising strategies to enhance customer satisfaction can yield
positive outcomes. Fostering open discussions among employees can generate innovative
ideas and potential implementations, improving employee motivation and empowerment.

Importance of Corporate Social Responsibility (CSR):

Corporate social responsibility entails adhering to objectives that guide a business in its
decision-making process. This, in turn, leads to the betterment of society, employees,
consumers, and the environment. It is important to note that the outcomes of these decisions
go beyond the economic progress of the business. Megabucks Ltd can establish a favourable
corporate reputation by adhering to CSR policies. By showcasing a dedication to
environmental sustainability and social responsibility, Megabucks Ltd can show a good
image among conscientious consumers and gain a competitive edge in the market. It is
imperative that Megabucks Ltd adheres to the expectations of its consumers and explores
alternative means, such as incineration or pyrolysis, which is the heating of toxic substances
at high temperatures such that the inorganic compounds break down and are safe to dispose
of, for disposing of toxic waste in local water bodies. Failure to do so has resulted in a
decrease in sales, and thus, it is crucial to take appropriate measures to address this issue.
Failure to adhere to environmental responsibility standards can result in legal consequences.
Upholding CSR objectives, particularly diversity and employee inclusion, can foster a
positive work culture that attracts skilled employees who can become valuable business
assets. Incorporating CSR objectives into your business strategy can aid in preserving
favourable connections with regulatory bodies, attracting and cultivating potential
collaborations, and upholding enduring goodwill.

Recommendations:

It is recommended that Megabucks Ltd consider adopting a more streamlined management

approach to improve the flow of information and boost employee satisfaction. A democratic
leadership style is recommended as it aligns with employee expectations, resulting in job
satisfaction and increased productivity. Formulating CSR objectives for Megabucks Ltd is
recommended to maintain a positive image among consumers and remain competitive in the
long run. Megabucks Ltd is recommended to reserve job positions for employees from
diverse backgrounds to display its commitment to diversity and social responsibility. It is
recommended that Megabucks Ltd consider implementing sustainable practices to optimise
resource utilisation and minimise waste. This approach can lead to cost savings and increased
operational efficiency.