Autocratic Business Leadership In A Recession Essay

Autocratic Business Leadership In A Recession Essay, Research Paper

This essay will address the question of whether the autocratic style of

leader is the best type to have in an economic recession. After giving

a definition of what an autocratic is, and what an economic recession

entails, the reasons why this is the best style of leadership will

be addressed. The points in favour to be examined will be; that quick

decisions are reached, there is efficiency, a clear chain of command

and a lack of sentimentality. Also, one good example of an autocratic

leader will be included. Then the reasons why this leadership style

may not be good will be looked at. These will be; the over dependency

on one person, the frustration and resentment caused to the workforce

and the modern trend towards employee participation in decision making.

There will then be a brief look at three other leadership styles, which

will lead to the question being answered as a conclusion.

An autocratic leader in business terms is a person who keeps most or

all of the key authority for themself. They are very dictatorial or

authoritarian and tell their employees exactly what to do. They tend

not to delegate very much or share information willingly with their

subordinates, and they .assume responsibility for all operational

aspects..[1]

An economic recession seen through the cycle of an individual business

can follow this process; falling sales, intense awareness of competitors,

customers becoming very price sensitive, a cut in output, making workers

redundant, not implementing expansion plans, postponing capital investment

and cutting under-used capital equipment.

Efficiency is a quality inherent in a successful autocrat. They will, in

a recession, exploit all the resources available with no sentimentality,

and as a leader they will have insured there is a minimal level

of bureaucracy and middle management tiers to interfere with this.

There is likely to be a high output per worker and a low level of cost

per business unit output. Overall, the efficiency of the autocrat will

be vital in streamlining operations during a recession.

Quick decisions are needed in every size of business at one time

or another. Seeing a market gap or spotting a take-over opportunity

are areas where this is especially relevant, the autocratic leader in a

time of economic downturn can use their attributes very profitably here.

Being in some ways both a gambler and a dictator by nature, they will

back their own judgement and impose their will on their employees.

They will often follow their hunches, and although this has inherent

risks, the opportunities that are open in a recession can lead to them

successfully exploiting their rivals. weaknesses through being confident

enough to aggressively move in on their market share or even launch a

take-over bid. Also, there will in some heavy industries, be excellent

opportunities to purchase cheap heavy plant, and use the fact that land

and buildings are cheap in a recession to obtain improved or different

business premises. For these and many other reasons an autocrats.

speed of decision will give their business an edge. Having a clear

chain of command is another advantage of having autocratic leadership.

This leads to centralisation in an individual organisations structure,

with the autocrat at the top taking most or all of the key decisions,

ensuring tight financial controls and clear targets. There will

be coherent policies for production and marketing. Although rather

one-way, communication channels throughout the business will be plain

and instructive. These tight structures will hold firm, and I believe

will be an asset when faced with the realities and problems associated

with recession. An autocrat will strongly maintain the form of the

business, whether it is large or small, and will not lose sight of the

need for forward planning, even when their organisation is sailing in

troubled waters.

The autocratic style of leader has advantages over other styles in one

other important way crucial in an economic recession: They have a lack

of sentimentality. When downsizing becomes necessary, the unpleasant

issue of staff redundancy becomes unavoidable. The autocrat seems

particularly suited to making these hard decisions. Employees will be

laid off in a fashion that is least expensive to the business, and this

type of leader will use this as an opportunity to lay off any deadwood.

Also, recession is likely to lead to redundancies in rival businesses,

and there becomes a chance to cherry-pick from the newly available talent.

Wages can be cut too, and contracts with weak business partners can become

more exploitative and profitable. This unsavoury side of business would

be best carried out by a ruthless autocrat.

One e

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