SUBJECT: BUSINESS MANAGEMENT

YEAR 1 - TERM 3

CASE STUDY: DISASTER AT THE BAKERY - KEY

1. Outline the characteristics of an autocratic leadership style.

• Individual control over all decisions (authoritarian control).

• Little or no input from group members.
• Choices made based on the manager’s ideas and judgements.
• Rarely accepts advice from the employees.
• High level of centralization.
• Manager gives orders and expects the employees to follow them without questions.

2. Explain why an autocratic leadership style would be suitable in this situation.

• Fast decisions to be made – The business cannot stop.

• It is suitable to handle crisis situations effectively, especially to deal with short-term problems.

3. Evaluate Eli’s decision of applying an autocratic leadership style.

Advantages
• Eli’s knowledge and experience to run the business. He knows how to continue operating.
• Efficiency in terms of time to act.
• Improves overall communication. Clear information is given directly to employees.
• Improves productivity – the business continues operating.
• Reduces the workers’ stress. Workers may not have the experience to handle crisis.
Diploma Programme - Business Management
Disadvantages
• It creates a system of dependency. Workers get used to following orders and not taking decisions on
their own. Lack of initiative. The business depends on Eli.
• Workers might feel not trusted by Eli. They are willing to help and their ideas or advice are not taken
into account.
• It discourages group input.