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Summary IB Business: Leadership styles (notes for essay)
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1. concise notes 2. suitable for essay-writing
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IB Business Management Unit 1 (Notes, Case Studies and Tools)
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IB Business Management Unit 1 Notes
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IB Business Management Unit 1 (Notes, Case Studies and Tools)
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Leadership stylesLeadership styles - ways in which decision makers behave or reveal their behaviour
1. Autocratic
2. Paternalistic
3. Democratic
4. Laissez-faire
5. Situational
1. Autocratic
● Leaders who adopt an authoritarian approach by making all the decisions rather than
delegating any authority to their subordinates.
● Suitable - situations that require quick decision-making or when critical decisions
have to be made e.g. during a crisis or when dealing with a hostile takeover/when
workers are unskilled so depend on directions and instructions of leaders
● Disad
- communication is top-down so opinions or suggestions of workers are ignored
- can cause resentment among employees as they have little opportunity to
make a real contribution
- Alienate and demotivate the workforce which can cause high levels of
absenteeism and labour turnover
2. Paternalistic
● Treat their employees as if they were family members, guiding them through a
consultation process and acting in the perceived best interest of their subordinates.
● Exceptional organisational skills and build trust with their teams
● Positive paternalistic style - when leader perceives workers as highly capable so
nurtures and develops workers.
● Negative paternalistic style - when leader perceives workers as less capable so leads
by guidance and control.
● Workers are expected to be loyal and obedient.
● Suitable - in countries e.g. Japan and India where cultural setting has enabled people
to work hard out of gratitude to their leaders
● Unsuitable - organisations that have flatter, informal structures where creative
thinking is required.
3. Democratic
● Involves employees in the decision-making process. They consult staff and consider
their views before making any final decision
● Result - better morale and job satisfaction as employees can express their views and
have input into decision-making
● Suitable - when leader cannot always be present to ensure employees remain on
task
● Unsuitable - when dealing with a large workforce or when there is dependence on
clear leadership e.g. dealing with trade union strike action or a public relations crisis
● Disad - delay decision-making because more people are involved in the process
4. Laissez-faire
● Minimal direct input in the work of employees. Instead allow subordinates to make
their own decisions and complete tasks in their own way.
● Leader sets the objectives but employees can decide how best to achieve these
using resources available to them.
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