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Autocratic leadership style Essay Sample

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Autocratic leadership style Essay Sample

In the case above, the main issue that can be observed is the leadership style carried out by Yusuf Chang ,the CEO of Bunga Raya bank which is autocratic leadership style. According to Rotemberg (1993), Autocratic leadership style is observed when a leader makes a crucial decision on behalf of the company. Yusuf Chang has been hired with a main purpose which is to generate even greater profits for Bunga Raya Bank. Due to following autocratic leadership style, Yusuf Chang has been quietly analysing Bunga Raya Bank’s financial position without input from anyone and has come to the decision to downsize and completely close several branches in order to increase profit.

Decision making process is another issue that can be observed from the case mentioned. In this case study, Analytical model of decision making process has been implied by Yusuf Chang. This model consist of three phases which is Decision formulation,decision consideration,and decision implementation process. The first phase took place when Yusuf Chang analysed Bunga Raya bank’s financial position to identify the problem faced by the organization.

Decision consideration phase was carried out when Yusuf Chang reasoned out that the use of technology and internet banking should be promoted at a higher pace in order to downsize employees and shut down several branches completely. The final phase which was Decision implementation phase can be observed when Yusuf came up with a solution which is to close several branches and downsize the employees to increase the profit of the organization . Eventhough Yusuf Chang implied this decision making process, he still risked the chances of losing customers and did not look into the situation where a big number of employees losing their jobs.

Another issue which is visible is the communication gap between top management and the employees in the organisation. It can be observed that Yusuf Chang as the CEO did not inform the employees regarding the issues of downsizing or shutting down some of the branches whereby he just arranged a meeting with Latifa to inform her regarding his decision and asking her to inform the workers since she is the one who is closest to them.

Question 2
Based on the case, elaborate the difference on Yusuf’s and Latifa’s approach in communicating the changes to their staff. (10 MARKS) According to the case, It can be observed that Yusuf and Latifa has different style of approach to communicate changes to their staff. Yusuf is a leader who is more to the directive approach. Directive approach is a leader who wants everything in his way. For example, Yusuf made the decision to close branches without asking input form others and he even targeting to settle the issue within six month. This show that he already set the goals that needs to be attained by just instructing the subordinates without giving them a chance to voice out their opinions which is the main reason he has a fewer admirer.

On the other hand, Latifa differs from Yusuf because she prefers to use supporting approach in communicating changes with her staffs. A leader which follows supporting approach plays a motivational role in managing team. In the case study, the employees prefer to work with Latifa due to her tolerant personality. She is concerned about her subordinates and always give her staff chance to share their point of view and problem whereby before making any attempt to communicate changes to the employees , Latifa looks for the best way to make decision which is beneficial to all parties involved.

In this situation , Yusuf Chang is portraying the Top Down decision making which is top management of an organization makes a vital decision without giving any authority to the employees. Latifa was called for a meeting by Yusuf with a purpose of informing regarding the decision made which is to downsize the employees and shut down of several branches. This is because eventhought the decision made is by the CEO , Latifa is the one who is responsible to implement changes plan to employees and customers. Yusuf Chang follows this decision making style due to his leadership style which is autocratic whereby he was influenced by the reward that will be received if he reaches his target without considering the consequences of workers losing job and also the risk of losing customers as well.

As a conclusion,the difference that can be observed in the approach of communicating the changes between Yusuf Chang and Latiffa is that Latiffa’s approach is better than Yusuf due because her approach is more humane than Yusuf Chang. The difference in the approach is influenced by the leadership style and decision making style as well.

Question 3
Yusuf is a directive leader – he wants the job done, and done in his time frame. However, he obviously has not thought the whole process through and has decided to leave that to Latifa because of her excellent rapport with the banking staff. What advice would you give to Latifa about handling the situation? Firstly, Latifa need to focus on the retention of corporate reputation of their bank. This is very important because the consequences of such a decision upon the local community will appear among the employers and the employees. The managers must protect the reputation and the legacy of the organization and also consider the impact of the decision upon the employees of the organization.

Downsizing employees is a very crucial decision because a job is the main source for individuals to earn for a living. If they are stopped from work, it may leave bad implications to the employees. Due to this factor, Latiffa should arrange for a meeting with the employees to discuss about the compensation they would like to request upon the downsizing process. This is a professional manner practiced to inform the employees regarding the dismissal of work to ensure the workers are given time to plan their career before the downsizing process.

As a manager, Latiffa needs to have a proper and efficient way of communication. The external communications should consist of accurate and timely information about what capacity management decisions have been made and the reasons for those decisions while the internal communication aims to keep employees informed fully about the planned changes to be made to the number of people employed by the bank and why the organisation is downsizing.

In this era of modernization , Latifa has the benefits of using social media to reach out to the external parties to inform the downsizing of the bank because social media is one of the fastest way to reach the public. In addition, she also need to manage the actual closure to set the vision for the closure or downsizing, planning its timing and the run-down of operations, determining the reduction of employee numbers clarifying and informing employees of their role in the immediate future.
Last but not least, she also need to manage the investment in employees and manage the continuity of operations in order to rebuilding the motivation of the employees due to the downsizing.

Question 4
Discuss Yusuf’s and Latifa’s differences in their approach to Leadership. Justify your answer.
Leadership is not about a title or a designation. It’s about impact, influence and inspiration. Impact involves getting results, influence is about spreading the passion you have for your work, and you have to inspire team mates and customers. According to the case study , the leadership style of Yusuf and Latiffa differs in approach towards their employees. Yusuf Chang , the CEO of Bunga Raya Banks portrays the qualities of a directive leadership style.

This explains that he makes decisions without discussing with employees and usually the decision made is beneficial for himself and it will have consequences on others. In this case, he has come to a decision whereby he wants to downsize the employees and shut down several outlets. By implementing this , he will be able to increase the profit of the company and receive reward from the top management of the organization but he fail to look at the consequences where many employees may lose their job and the risk of losing customers is also high which explains why he has very less admirers in the organization. Moreover , this clearly shows that Yusuf does not make a good solution to solve problem yet there are many other problems that may arise from his decision.

On the other hand , Latifa is a leader who gives importance to her subordinates. As a leader , She is willing to hear for ideas and complains of employees who works under her and before making any important decisions, she gives the workers a chance to voice out their opinion and ideas. To become a great leader, we must be concern about everyone to ensure the final decision is accepted by all.

This is a good approach because as a leader, we should give the staffs chance to voice out their opinion in order to achieve organizational goals. By giving employees a chance to voice out their opinions, this will boost the morale of an employee and it will increase the performance of workers that will result in high productivity in the organization.
As a conclusion , the leadership styles followed by both the top managements has their pros and cons, but Latifa’s approach is more likely to be favoured by majority. This is because the style has more humane characteristics whereby it gives importance to everyone equally instead of giving prominence to the leader’s thoughts and decision.

Question 5
How would you see the conflict between Yusuf and Latifa be solved? Based on my opinion, the type of conflict that occur between Yusuf and Latifa is process conflict. This type of conflicts can be solved through effective communication and negotiation. Effective communication is a process of selecting the correct channel that has the richest impact to conduct communication. For example, Face to face conversation. According to the case study, Latifa realized that Yusuf never took time to meet with her although her attempt to develop a good working relationship. As a good leader, Yusuf must give opportunity for Latifa to voice out her opinion and since she has a better relationship with the employees, the solutions that she may suggest might reduce the consequences that will be faced when downsizing employees and shutting down branches.

Negotiation is another method that will be able to solve the conflict between them. Through negotiation process , Latifa will be able to understand the intention of Yusuf to propose such a solution for the issues faced by the organization and she will also be given a chance to speak up her opinion and come to a fair conclusion. The conflict among Yusuf and latifa can be solved using layoff strategies. Layoffs that will be carried out to downsize the employees can be done in short term and long term as well whereby the short term strategies that can be implemented are reduced hours, unpaid leaves and many more where else the long term strategies are organizational redesign during a drive to reduce overall staff costs or pay equal attention to the employee.

By implementing this strategy the situation between both of them will be a win win situation because it is clearly unreasonable for Yusuf to downsize employees just to receive personal rewards .As a conclusion , downsizing employees and closing some branch is a very big decision for an organization because there are many negative impacts for that action so as a responsible leader , we should be able to take several steps in managing conflicts and taking effective solutions that may help to reduce the conflicts on organization whereby Yusuf should give his subordinates chance to voice out and Latifa advise the top management based on her knowledge and expertise in making decisions

Reference
Rotemberg, J. J., & Saloner, G. (1993). Leadership style and incentives. Management Science, 39(11), 1299-1318.

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