Photo AI
Evaluate these two options and recommend which is the most suitable leadership style for a business such as Hot Chip. - Edexcel - A-Level Business - Question 1 - 2018 - Paper 1
Question 1
Evaluate these two options and recommend which is the most suitable leadership style for a business such as Hot Chip.
Worked Solution & Example Answer:Evaluate these two options and recommend which is the most suitable leadership style for a business such as Hot Chip. - Edexcel - A-Level Business - Question 1 - 2018 - Paper 1
Step 1
Option 1: Autocratic Leadership
Answer
Autocratic leadership is characterized by central decision-making, where managers direct subordinates with little consultation. In fast-paced environments like fast food, this can be beneficial as quick decisions are required for customer satisfaction. Staff might not be equipped to answer customer queries autonomously, making clear directives essential. This leadership style can also help reduce staff turnover, providing stability, particularly in a new business like Hot Chip. With experienced managers guiding inexperienced staff, the risk of operational failures can be minimized.
Step 2
Option 2: Democratic Leadership
Answer
Democratic leadership involves consultation and collective decision-making based on majority opinions. This style allows the business to gain insights from employees who understand customer preferences and operational challenges. For Hot Chip, a new venture striving to establish itself, engaging staff in decisions about menus and service can enhance morale and improve service quality. This leadership style fosters a responsive environment that can quickly adapt to customer feedback, a crucial aspect in the competitive food market.
Step 3
Recommendation
Answer
Considering Hot Chip's status as a new business, a blend of both leadership styles may be most effective. Autocratic leadership can provide the necessary structure during the initial establishment phase, ensuring clarity in operations. As the business matures and staff become more experienced, incorporating democratic elements could enhance innovation and adaptability. Therefore, starting with an autocratic approach, then gradually shifting towards more democratic practices as the team grows, would likely yield the best results for Hot Chip.