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Leadership styles

IB Business Management • Unit 2

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👔 Leadership Styles

Big Idea: A leadership style is the way a leader makes decisions and interacts with their team. Different styles suit different situations -- there is no one best style.

Autocratic leadership

  • Leader makes all decisions alone without consulting employees
  • Expects employees to follow instructions without question
  • Communication is top-down only (one-way)
  • When it works: crisis situations, unskilled workforce, time pressure, need for quick decisions
  • Weaknesses: demotivates skilled employees, no input from those closest to the work, creates dependency on the leader

Democratic/participative leadership

  • Leader consults employees and considers their views before making decisions
  • Employees feel involved and valued in the decision-making process
  • Communication is two-way (up and down)
  • When it works: skilled and experienced workforce, complex decisions benefiting from multiple perspectives, when employee buy-in is important
  • Weaknesses: slower decision-making, not suitable for emergencies, some employees may not want the responsibility

Laissez-faire leadership

  • Leader gives employees freedom to make their own decisions with minimal interference
  • Employees have high autonomy -- they set their own goals and methods
  • Leader provides resources and support but steps back from day-to-day control
  • When it works: highly skilled, creative, self-motivated employees (e.g. innovation teams, research departments)
  • Weaknesses: lack of direction can lead to confusion, does not work with unskilled or unmotivated workers, accountability can be unclear
The DA case study is a goldmine for leadership styles. Viv was autocratic when rebuilding DA after the war -- quick decisions were needed and she had clear determination. Pierre is democratic/consultative -- he listens to directors' views before deciding. Salah uses laissez-faire with his innovation team -- creative employees work best with autonomy. The exam asked about BENEFITS of each style -- not just what they are.
Exam questions about leadership styles often ask for BENEFITS, not just features. Always explain WHY a style is suitable for the specific situation. For example: 'Salah's laissez-faire approach benefits DA because creative employees in the innovation division work best when given autonomy to experiment and develop new ideas without constant supervision.'

Situational leadership

The best leaders adapt their style to the situation. There is no single best style -- effective leaders switch between styles depending on the context.

  • Crisis -- autocratic may be best (quick, decisive action needed)
  • Creative project -- laissez-faire may be best (autonomy encourages innovation)
  • Strategic planning -- democratic may be best (multiple perspectives improve decisions)
  • New/unskilled team -- autocratic or close supervision may be needed initially
  • Experienced team -- democratic or laissez-faire allows them to use their expertise
In exam discussions, showing you understand that leadership style should match the SITUATION scores higher than simply listing features of each style. The DA case study demonstrates situational leadership perfectly -- different leaders used different styles for different contexts. 🎯

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