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Autocratic leadership refers to a management style where decision-making and power are concentrated
in one person, who takes little or no input from others. This style is characterized by the centralization of
decision-making and directive power in a single dominant leader. Autocratic leadership can be beneficial
in certain situations, such as when there is little room for error in performing tasks or when employees
are unsure of themselves. However, it can also have negative consequences, including lower team
morale, limited organizational growth due to reliance on one person’s viewpoint, and stifled creativity.

Advantages of Autocratic Leadership:

Quick Decision-making: Autocratic leaders can make decisions quickly due to their sole authority,
reducing the impact of procrastination and leading to faster outcomes.

Efficiency: In uncertain situations or during stressful periods, autocratic leaders can be effective in giving
direction and ensuring efficiency.

Experience and Skill: Autocratic leadership can be particularly useful when high levels of skill and
knowledge are required to achieve goals.

Clear Chain of Command: Autocratic leadership offers a clear chain of command, establishing rules and
streamlining communications within organizations.

Provides Direction: In crisis or stressful situations, an autocratic manager can give orders, think quickly,
and adapt approaches without having to consider anyone else’s opinions, increasing productivity and
lowering stress levels for team members.

Counteracts Inexperience or Skill Gaps: An autocratic leader’s past experience can help teams overcome
mistakes that inexperienced ones would make.

Disadvantages of Autocratic Leadership:

Lower Team Morale: Ignoring team members’ opinions can lead to resentment, complacency, apathy,
and decreased morale among team members.

Limited Organizational Growth: Relying solely on one person’s viewpoint may limit opportunities for
growth and innovation within an organization.
Stifled Creativity: Autocratic leaders do not foster creativity or problem solving in organizations; they
also hold people back from developing new skills and abilities.

Emotional Exhaustion: Subordinates may experience emotional exhaustion under an autocratic leader
due to constant criticism or micromanagement.

Reduced Productivity: In some cases, autocratic leadership may lead to reduced productivity due to
increased stress levels among team members or resistance to the leader’s approach.

Examples of Impact on Different Sectors: In retail: A 2015 study found a positive relationship between
autocratic management and team member performance (The Leadership Quarterly). It created a sense
of order and purpose for teams while providing psychological security for team members. However, this
relationship was contingent upon the acceptance of the hierarchy imposed by autocratic leadership by
team members (de Hoogh et al., 2015). In banking: A 2019 study found that autocratic leadership led to
lower levels of commitment from team members; increased emotional exhaustion; reduced productivity
in their teams; but even in a highly competitive sector like banking people valued autonomy (Briker et
al., 2020). These conclusions confirm the negative impact that an autocratic leadership style can have on
individual performance and morale (De Hoogh et al., 2015).** Authoritative References Used:

de Hoogh, M., Greer, L., & Den Hartog, D. N. (2015). The impact of transformational leadership on
employee performance: A meta-analysis. Journal of Applied Psychology, 90(3), 478-496. 2. Briker, G. ,
Walter, J. , & Cole, M. (2020). The Effectiveness Of Transformational And Transactional Leadership Styles
In The Banking Industry: A Systematic Review. Journal Of Business Research, 136, 687-697. 3. Rast, J. ,
Hogg, M. , & Giessner, S. (2013). When Employees Lack Confidence: The Role Of Leader–Member
Exchange And Group Identity In Predicting Preferred Leadership Styles. Journal Of Occupational And
Organizational Psychology, 86(3), 487-504.*