The autocratic management style involves manages making all the decisions and the employees having no real input. Often when employees are in an autocratically run organisation would become very dependent on their leaders. Staff do not have the information, support and confidence to act on their own initiative (Carnall, 1997). Henry (1979) describes a situation in which an autocratic style is applicable. For most entrepreneurial businesses, there is only one person who is responsible for the whole organisation and makes all decisions. This kind of firms typically operates in rapidly changing environments so they require quick decision makings. Autocratic management is helpful for entrepreneurial organisation because managers in this type of management style have power to make all important decisions and they do not need to wait for the opinions from employees.
Autocratic management styles are also criticised. When applying the autocratic management style to make decisions, autocratic managers make all decisions without any consultation with employees, even sometimes they only depend on their own subjective experience, knowledge and understanding. This implies a high risk when the decisions are not suitable for the current situation. Financial crisis has an impact on the economy of whole business, if manager make a wrong decision it may result in huge financial loss.
Autocratic management style tends to cause an increased number of staff turnover. Autocratic managers frequently ignore and not hearken to the opinions of their subordinates, so employees feel them are not consulted and valued. These reasons cause employees leave their jobs. The study points out that when employees expect to have their opinions to be heard, the autocratic style might not be suitable for the organisation. Therefore, an autocratic management style may not be appropriate in a dynamic market place.
The study points out that an autocratic style can be successful if the business is successful with good pay rates and offers job security. Moreover, when work is unskilled and people have little ambition and motivation beyond obtaining their regular pay. This might suitable for the UK mass production as this kind of companies are all un-skilled and have good pay rates.
References
Wilson, Fiona M. (2004) Organizational Behaviour and Work: A Critical Introduction. Oxford University Press Inc., New York.
Kast, F.E., and Rosenzweig, J.E. (1985), Organization and Management: A systems and Contingency Approach (4th edn.), New York: McGraw Hill.
Henry, M. (1979) The Structuring of Organizations: A synthesis of the research, Prentice-Hall, New Jersey.
Carnall (1997) Managing Change in Organizations. (5th edn.) Pearson Education Limited.
