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Management Style
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Autocratic leadership style is often considered the classical style of management in which managers do not delegate the responsibility or authority to their subordinates and keeps the final decision-making power in their own hands. There is no consultation between employees and their management, there is no input from employees in the normal routine of business. Employees are only meant to receive directions and act upon them without any further explanations. The level of motivation is raised by making a proper set of rewards and punishments. There is a danger that the business using autocratic style may see higher turnover but on the other hand, it will also have things under control. Management does not trust employees and this style works best if there is any kind of secrecy to be maintained in the business. People from generation X do not like this style of leadership because they are supposed to be lazy and dislike work whereas an autocratic leader will make them work by force. Shareholders will have good control over the business and they will have the access to audited financial statements. They can check the way business is managed and run. Management can implement any of their policies with ease because there will be no one to challenge their decisions. Making laws for an organization and implementing them effectively will require autocratic leadership. An example can be given of the current business where a rule is set that no stale materials will be used by the business to make smoothie. This will be implemented most effectively with the autocratic leadership style. There will be minimal room for discussions between managers and owners who will be the shareholders. Shareholders will have the last say in decision making so that no other party may interrupt their decision-making power. All the staff members in our business will know their responsibilities or things that they must do. There will be optimal job security for the people who follow rules in true spirit. Discipline will be maintained in the organization because everybody will know what is expected from them CITATION Muh15 \l 1033 (Khan & Khan, 2015).
As far as the suppliers are concerned, their bargaining power will be stronger because there will be a large number of smoothie makers in the market. Although we will provide a healthy drink to them but there will be a tight competition in the market. This competition will not allow our management to take their autocratic style of leadership and deal with suppliers because they will not like to work with them if they are guided too much. In case of suppliers, communication will be two way and managers will have to give due importance to opinion of suppliers so that they can retain them for a longer period of time. Managers will have to see the suppliers as a part of theory Y which assumes that people like to work and do not need any unnecessary guidance to complete the assigned task. In essence, leaders of this business will have to follow two different styles of leadership while dealing with the employees and suppliers. Employees will be paid by them so they may follow their orders out of fear but suppliers are needed b y business itself so losing them will mean that business will have to find other suppliers. The nature of business is such that it cannot afford a cut on supply for a single day so it has to make positive relations with the suppliers. Employees will adapt to the management style taken up by the management but suppliers simply do not have to. Another difference is that employees get paid to survive but suppliers are not.
References
BIBLIOGRAPHY Khan, M. S., & Khan, I. (2015). The Styles of Leadership: A Critical Review. Public Policy and Administration Research, 86-92.
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