Business Studies – 2.2.3 Leadership styles | e-Consult

Autocratic Leadership: While quick decision-making is beneficial in manufacturing, the potential for low morale and reduced creativity could hinder innovation and problem-solving within the company. This could lead to lower quality products and reduced competitiveness. Therefore, autocratic leadership is generally not suitable.

Democratic Leadership: This style could be beneficial in fostering a sense of ownership and encouraging employees to contribute ideas for improving processes and product quality. However, the slower decision-making process could be a disadvantage in a fast-paced manufacturing environment where quick adjustments are often necessary. It requires a skilled and engaged workforce.

Laissez-faire Leadership: This is highly unsuitable for a new manufacturing company. Lack of direction and coordination would likely lead to inefficiencies, errors, and delays in production. A new company needs clear guidance and strong leadership to establish processes and ensure quality control. It would be extremely risky and likely result in failure.

Recommendation: A hybrid approach, combining elements of democratic and autocratic leadership, would likely be most suitable. The leader could empower employees to contribute ideas and participate in decision-making regarding process improvements, while retaining autocratic control over critical operational aspects such as quality control and safety procedures. This allows for both employee engagement and efficient production.