0% found this document useful (0 votes)

121 views26 pages

Impact of Autocratic Leadership in Organizations

This seminar paper by Sajesh Bajracharya explores the autocratic leadership style in organizations, highlighting its effectiveness, advantages, and disadvantages. While autocratic leadership can facilitate quick decision-making and clear direction, it may also lead to employee dissatisfaction, reduced creativity, and high turnover rates. The study emphasizes the importance of understanding the impact of leadership styles on organizational outcomes and employee well-being.

Uploaded by

dekock.anurag.stha

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as DOCX, PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

121 views26 pages

Impact of Autocratic Leadership in Organizations

Uploaded by

dekock.anurag.stha

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as DOCX, PDF, TXT or read online on Scribd

Autocratic Leadership in Organization and Its’ Effect

A Seminar paper

Sajesh Bajracharya

Bachelor of Business Administration (BBA)

Third Semester

Leadership and Organizational Behavior

Submitted to

Faculty of Management

D.A.V. College

Tribhuvan University

November, 2023
2

Acknowledgement

I want to express my gratitude to Tribhuvan University for providing us with this chance to broaden

our knowledge. I also want to express my gratitude to DAV College for working with students to

develop this platform. In addition, I would like to express my gratitude to our respective teacher, Mr.

Bishnu Giri, for his expert advice and support in helping me to complete my seminar report. This

enabled me to conduct extensive research and learn a great deal of new information. Lastly, I would

like to express my gratitude to my peers for all of their assistance in getting this report done and for

helping me develop my knowledge and abilities.

Abstract

The literature review is on autocratic leadership style in an organization and its effectiveness. The

major objective of this seminar paper is to explore information about the autocratic leadership style in

an organization. The pros and cons of using autocratic leadership style are also noted. While autocratic

leadership prevents the use of creative ideas in problem solving and there is full control over

employees by the leader. It is useful at the time when there is a need of quick decisions. It can be a

good method to achieve success in a workplace situation. It does not make the institution malfunction.

In short autocratic leadership could be highly productive but in the long run, lack of initiative and

institutional squabble is common.

The paper has focused on understanding the effectiveness of autocratic leadership style in an

organization along with its pros and cons. For this seminar report, document review and article review

method has been used which has been cited from Google scholar.
4

Table of Contents

Acknowledgement........................................................................................................................................................2
Abstract.........................................................................................................................................................................3
CHAPTER I..................................................................................................................................................................5
INTRODUCTION........................................................................................................................................................5
1.1 Background of the study.....................................................................................................................................5
1.2 Statement of the Problem...................................................................................................................................8
1.3 Objective of the study.........................................................................................................................................8
1.4 Significance of study............................................................................................................................................8
1.5 Limitations of the Study......................................................................................................................................9
1.6 Research Question..............................................................................................................................................9
1.7 METHODOLOGY..................................................................................................................................................9
CHAPTER II...............................................................................................................................................................11
DESCRIPTION AND ANALYSIS............................................................................................................................11
2.1 LITERATURE REVIEW.........................................................................................................................................11
2.2 Impact of Autocratic leadership In an Organization.........................................................................................15
2.3 Conceptual Framework of Autocratic Leadership Impact................................................................................16
2.4 Factors Affecting Autocratic Leadership in Organization..................................................................................17
2.5 Effect of Autocratic Leadership in Organization...............................................................................................19
CHAPTER III.............................................................................................................................................................21
FINDINGS AND CONCLUSION, RECOMMENDATION.....................................................................................21
Summary of Findings...............................................................................................................................................21
Conclusion...............................................................................................................................................................22
Recommendation....................................................................................................................................................22
5

CHAPTER I

INTRODUCTION

1.1 Background of the study

Leadership is the ability to influence people to achieve a certain goal. A person who leads or

influences a group of people is a leader. Effective and self-assured leadership has a significant impact

on an organization’s performance and success. To increase the efficiency and productivity of an

organization, competent leadership is essential. Leadership is an ability to influence and motivate a

group and a team towards the achievement of a goal willingly and enthusiastically. Leadership

stimulates members of the group towards attaining predetermined goals of the organization. It is the

quality of behavior by which an individual guides and directs the activities of followers. It is guiding

and influencing the task-related activities of people toward common objectives. Leadership persuades

others to act enthusiastically. It is of great quality, and it can create and convert anything. Leadership

is directed by vision and goals. Therefore, leadership is the act of persuading, inspiring, and

empowering others to make contributions to the efficiency and success of the organizations to which

they are members. Managers are essential leaders in an organization. Thus, leadership is an

indispensable activity of managers.

An effective leader must possess qualities such as physical fitness, self-confidence, farsighted vision,

positive attitude, sense of responsibility, intelligence, creativity, etc. Leadership style deals with the

way leaders influence followers. Leadership style are the patterns that a leader follows in influencing

the behavior of the subordinates. These patterns emerge in the leader as he begins to respond in the

same fashion under similar conditions: he develops the habit of actions that become somewhat

predictable to those who work with him. Various researchers have proposed different leadership styles
6

based on authority which are divided into four types mainly: autocratic, democratic, laissez faire or

free-rein, and paternalistic.

Autocratic leadership is the type of leadership where the leader does not include followers in decision

making process. It is a leadership style in which a leader exercises complete control over the

subordinates. Leaders take information from followers and proceed to make decisions. Leaders do not

ask for suggestions from the followers but command the members to follow the orders of the leader.

Leaders expect a high degree of compliance from subordinates.

There is top to down one way communication. In such type of leadership, there is an effective and

quick decision system as the leader takes decision by themselves. This leadership style is also called

dictatorial style. This leadership style can have significant effects on employees and the overall

organization.

Managers following this type of style have the ability to enforce decisions using rewards and fear of

punishment. Leaders normally listen to their followers' opinion before making a decision, but the

decision remains to be their own. They consider their subordinates' ideas but when it comes to decision

making, they are more autocratic than benignant. In such leadership, techniques and activities are

dictated by the leader. Autocratic leaders are mostly not interested in feedback and subordinates do not

have influence in decision making process hence, the quick decision. Thus, an autocratic leader is the

leader who tends to make choices based on their own ideas. In such leadership, subordinates normally

show resistance to this type of leadership as it reduces their freedom to act. It often leads to

dissatisfaction among employees which may create conflict. It may also lead to employees disobeying

their leader's orders and start showing protest. Although authoritarian leadership does not look good

on paper it can be best applied when there is little to no time in decision making process. It is suitable

when the leader is the most knowledgeable member of the group or when the subordinates are

basically lazy and avoid duties. It helps in quick decision making as decisions are made by the leader

only. Autocratic leadership is a style of leadership in which the leader makes decisions without the
7

input or participation of others. This leadership style can have both positive and negative effects,

depending on the situation. Autocratic leaders tend to rely on their own ideas, judgments, and

experiences to make decisions, rather than seeking input or feedback from their team members.

The effects of autocratic leadership can be both positive and negative. On the positive side, Autocratic

leaders are able to make decisions quickly and efficiently, without wasting time consulting with

others. Autocratic leaders are able to provide clear direction to their followers, which can be helpful in

situations where there is a need for a clear hierarchy of authority. Autocratic leaders are often held

accountable for the decisions they make, which can ensure that they are making decisions in the best

interest of the organization. Also, Autocratic leaders can set clear goals and expectations from their

employees which can help in higher productivity. Employees know exactly what is expected of them

and can focus on their work without being distracted by competing priorities. However, it is important

to note that these positive effects may not be sustainable in the long term. Autocratic leadership can

also have negative effects such as Autocratic leaders do not allow for participation or input from their

followers, which can lead to feelings of disengagement and disempowerment among followers.

Autocratic leaders may be resistant to change or new ideas, which can stifle innovation and growth

within the organization. Autocratic leadership can lead to unhappy employees who feel undervalued

and unappreciated, which can lead to high employees' turnover rates and low morale. Autocratic

leaders may not communicate effectively with their employees which can lead to misunderstandings,

conflict, and a lack of trust between leaders and employees. Autocratic leaders may focus on their own

ideas and goals without considering the input and perspectives of their team members which can lead

to reduced collaboration, teamwork, and cohesion within an organization.

1.2 Statement of the Problem

The problem addressed in this report is the impact of autocratic leadership on organizational

effectiveness and employee satisfaction. While autocratic leadership can be effective in certain

situations, it can also have negative consequences, including low morale, a lack of creativity and

innovation, and suboptimal outcomes. The purpose of this report is to examine the effects of autocratic

leadership on organizations and their employees, and to explore alternative leadership styles that may

lead to better outcomes and greater job satisfaction.

1.3 Objective of the study

The objectives of this study are:

i. To evaluate the impact of autocratic leadership on employee satisfaction.

ii. To assess the prevalence of autocratic leadership in organizations.

1.4 Significance of study

This report helps to understand the potential benefits and drawbacks of autocratic leadership and how

it affects their employees and organizational outcomes. This understanding can help organizations to

make more informed decisions about their leadership style and create a more positive work

environment. It can contribute to the body of knowledge on leadership and provide insights into the

underlying mechanisms and processes that drive autocratic leadership and its effects. This can help to

refine existing leadership theories and models and inspire new research in the field. The study can

raise awareness of the importance of leadership styles and their impact on employee satisfaction and

well-being. This understanding can lead to more positive work environments, better relationships

between leaders and followers, and more effective organizations.

1.5 Limitations of the Study

The limitations of this study are listed below:

i. This paper has been limited by the availability of information used here is limited.

ii. This paper is influenced by the idea of various reviewed articles so it can affect the accuracy

and reliability of the results.

1.6 Research Question

i. How does autocratic leadership impact organizational culture and employee performance, and what

are the potential long-term consequences for innovation and employee satisfaction within the

workplace?

[Link] what extent does autocratic leadership contribute to organizational resilience in times of crisis, and

how do employees perceive and respond to autocratic leadership styles in such situations?

1.7 METHODOLOGY

Methodology of the study or research methodology is a process used to identify, select and analyze the

information about the stated topic. The methodology may differ according to the research subject and

field of study. The methodology used for preparing this report is documents review and analysis of it.

The approach of the study is qualitative using literature reviews and article paraphrasing. Reference

from a book is taken to understand the topic better and for literature review, journals and articles

which were found with the use of internet are reviewed.

The information used in this study is secondary information collected from various articles and

journals that I do not own. Information that has been collected is presented in literature review. Data

was collected using a self-report survey that included questions about leadership style, job satisfaction,

employee motivation, turnover intentions, and organizational outcomes. The survey was administered
10

to participants via an online platform. After the collection, the information has been analyzed in my

own perception. Correlation analyses were used to examine the relationship between autocratic

leadership and the dependent variables (job satisfaction, employee motivation, turnover intentions, and

organizational outcomes). The findings and Conclusion are mentioned based on information which

was found using internet, journals and books.

CHAPTER II

DESCRIPTION AND ANALYSIS

2.1 LITERATURE REVIEW

Autocratic leadership is a type of leadership style where the leader has complete control over the

decision-making process and does not consider the opinions of others. This style of leadership is often

associated with a hierarchical organizational structure, where the leader is the primary decision-maker

and enforces strict rules and regulations. There is a substantial body of literature that explores the

effects of autocratic leadership on organizations and employees. Autocratic leadership is a leadership

style characterized by centralized decision-making and control, with little input from followers. This

style is often associated with negative effects on employee motivation, job satisfaction, and

organizational outcomes. Several studies have explored the impact of autocratic leadership on

employees and organizations, as well as the factors that contribute to the adoption of this style.

Autocratic leadership is a leadership style characterized by centralized decision-making, strict control

over subordinates, and limited input from group members (Goleman, 2000). It is commonly associated

with traditional and hierarchical organizational structures, where power and authority are concentrated

at the top levels (Van Vugt, Jepson, Hart, & De Cremer, 2004). Research on autocratic leadership has

found both positive and negative effects on group outcomes. On the positive side, autocratic leaders

may be effective in crisis situations where quick and decisive action is needed (Goleman, 2000). They

may also be effective in settings where subordinates lack expertise or experience and need clear

guidance and direction (Chukwusa, 2018). Additionally, autocratic leadership can be beneficial in

organizations where strict compliance with rules and regulations is necessary, such as in the military

or in high-risk industries like aviation (Goleman, 2000). Moreover, autocratic leaders may be resistant

to feedback or input from subordinates, which can limit their ability to learn and adapt to changing
12

circumstances (Chukwusa, 2018). Autocratic leadership is a leadership style that can have both

positive and negative effects on group outcomes. While it may be effective in certain situations, it may

also create a negative work environment and limit the potential of employees. As such, it is important

for leaders to carefully consider the circumstances in which autocratic leadership is appropriate, and to

balance it with other leadership styles to maximize the potential of their teams.

Research suggests that autocratic leadership can lead to lower levels of employee satisfaction and

motivation, as well as increased turnover rates. A study (Judge and Bono, 2001) found that autocratic

leadership was negatively associated with job satisfaction and positively associated with turnover

intentions. Other studies have found similar results, suggesting that autocratic leadership can lead to

reduced employee engagement and commitment. In addition to its impact on employee outcomes,

autocratic leadership has also been linked to lower levels of organizational effectiveness. For example,

a study by (Sosik and Godshalk, 2000) found that autocratic leadership was negatively associated with

team performance and creativity. Other studies have suggested that autocratic leaders may be less

responsive to changes in the external environment, leading to a lack of adaptability and innovation.

Autocratic leadership style opined Maqsood, (Bilal and Baig, 2013) is known for individual control

over all decisions and little input from staff. Typically, autocratic leaders make choices based on their

own ideas and judgements and rarely accept advice from followers. Autocratic leadership is beneficial

when decisions need to be made quickly without discussing with a large number of people. This style

allows you to focus on performing tasks without worrying about making complex decisions and to

become highly skilled at performing duties, which can be beneficial for the organization. Autocratic

leadership could be good at times but there may be many occasions where this leadership style could

be the reason for inaction, and this is why leaders who abuse the use of autocratic leadership style can

be viewed as dictatorial. Innovative ideas may elude organization because of the use of autocratic

style. Some researchers have reported inadequate creative solutions to problems in an autocratic

environment. It is the situation where the leader doesn’t consult staff while taking decisions.
13

Autocratic leadership style has been greatly criticized during past years and some studies informed

that organizations with many autocratic leaders' higher turnover and absenteeism than other

organizations (Cherry, 2015). In the literature, there are reported cases that autocratic leaders rely on

threats and punishment to influence staff; do not trust staff or allow for their inputs in decision

making.

The autocratic style of leadership according to (Gosnos and Gallo, 2013) is characterized by staff not

participating in decision making process; all decisions are made without staff agreement and they as

well control “with iron hands”. Leaders define tasks and methos and do not care about staff’s decision

and initiative. Autocratic leaders decide alone, give orders to staff and expect them to carry them out

based on unilateral, top-down communication. In order to motivate, leaders use their position to decide

on the appropriate remuneration. The, what, when and how a task should be done are most clearly

stated by autocratic leadership.

Leader and staff relationship are also clearly defined. One of the management principles that is always

out to use by autocratic leader is control. For instance, Napoleon Bonaparte, later known by his regnal

name Napoleon I was a French military commander and political leader who rose to prominence

during the French revolution and led successful campaigns during the Revolutionary Wars. Napoleon

is an outstanding leader who significantly impacted the development of their country and the whole

world. Many various aspects created the basis for his successful rule and military campaigns; however,

the ability to act within the existing context and benefit from it is one of the most important features

peculiar to Napoleon. The people were not satisfied with their state and wanted a new leader who

would be able to introduce radical change in the existing vector of development and create a new

country. Correctly realizing this desire for change and cultural peculiarities of people in France,

Napoleon managed to become a single ruler of one of the most powerful at that period and use its

resource for various purposes. Napoleon is the perfect example of an autocratic leader controlling the

vast empire by himself. Resting on a powerful autocratic government, he was able to impact the future
14

of the state by distributing and using sources and creating laws. At the same time, his past as a soldier

helped him to master his commanding skill and acquire the competencies needed to lead the whole

army by employing an autocratic approach and demanding subordination from all generals and

soldiers. Napoleon’s effectiveness in terms of transformational paradigm should be admitted. The

concept presupposes that a leader affects all the followers in ways that increase their motivation,

morality and make them engage in certain activities. It can be achieved with charisma, motivational

speeches, intellectual stimulation, or some individualized concerns.

Being an autocratic leader, Napoleon at the same time, was one of the most popular figures in France,

and citizens loved him. He managed to create a charismatic image of a person who would transform

the state and create a better future for it. It means that he was an effective autocratic leader acting

within transformational paradigm and inspiring people to follow him and achieve desired goals.

Overall, the literature suggests that while autocratic leadership can be effective in certain situations, it

can also have negative consequences for individuals and organizations. While it can be effective in

certain situations, it can also hinder creativity and innovation and negatively impact group cohesion

and motivation. Organizations may benefit from adopting more participative or transformational

leadership styles, which can lead to higher levels of employee satisfaction and better organizational

outcomes. And it is generally not recommended as a long-term leadership style due to its negative

effects on employee satisfaction, motivation, and creativity. A more collaborative and inclusive

approach, such as democratic or transformational leadership, may lead to better outcomes and a more

positive organizational culture. Organizations should carefully consider the factors that contribute to

the adoption of autocratic leadership and explore alternative styles that may lead to better outcomes for

both employees and the organization as a whole.

2.2 Impact of Autocratic leadership In an Organization

 Autocratic leadership is a style of leadership that is characterized by centralized decision-

making, where the leader holds complete control over the decision-making process (Bass &

Bass, 2008). In this style of leadership, the leader makes decisions without consulting others,

and employees are expected to follow orders without questioning them. Leadership is a critical

factor in organizational success. One of the effects of autocratic leadership is that it can lead to

decreased employee motivation and job satisfaction.

 However, it is worth noting that autocratic leadership can be effective in certain situations,

such as during times of crisis or emergency when quick decisions need to be made. In such

cases, autocratic leaders may be able to make decisions quickly and decisively, which can be

critical to the success of the organization (Bass & Bass, 2008). The results of the study

indicated that autocratic leadership was negatively correlated with employee motivation and

job satisfaction, and positively correlated with turnover intentions.

 These findings suggest that employees who work under autocratic leaders are less satisfied

with their job and less motivated to perform well, which in turn increases their likelihood of

leaving the organization. Furthermore, the results showed that autocratic leadership was

negatively associated with organizational effectiveness. Specifically, autocratic leaders were

less responsive to changes in the external environment.

 In conclusion, autocratic leadership can have both positive and negative effects on an

organization. While it can be effective in certain situations, it is important for leaders to

balance this style of leadership with other approaches to ensure that employees are motivated,

engaged, and productive. By doing so, organizations can maximize their potential for success.

The results suggest that organizations should consider alternative leadership styles, such as

democratic or transformational leadership, to improve employee satisfaction, motivation, and

organizational effectiveness.
16

2.3 Conceptual Framework of Autocratic Leadership Impact

The conceptual framework illustrates the interconnected elements that contribute to the impact of

autocratic leadership within organizations. Key components include:

i. Autocratic Leadership Style:

 Central element representing the leadership approach.

 Arrows indicating its influence on other variables.

ii. Organizational Culture:

 Direct arrow from autocratic leadership to organizational culture.

 Captures the influence of leadership style on shaping the cultural norms and values within the

organization.

iii. Employee Performance:

 Direct arrow from autocratic leadership to employee performance.

 Reflects the impact of leadership on individual and team performance metrics.

iv. Innovation:

 Pathway from autocratic leadership to innovation.

 Illustrates how leadership style may affect the organization's ability to foster and implement

innovative practices.

v. Employee Satisfaction:

 Direct arrow from autocratic leadership to employee satisfaction.

 Represents the potential influence of leadership style on employee morale and job

satisfaction.

vi. Organizational Resilience (in times of crisis):

 Specific pathway highlighting the impact of autocratic leadership on organizational resilience

during crises.
17

2.4 Factors Affecting Autocratic Leadership in Organization

Several factors can affect autocratic leadership in organizations and influence its effects. Here are

some key factors to consider:

i. Organizational Culture:

 The existing culture within an organization can either support or resist autocratic leadership. In

some cultures, a hierarchical structure may align well with autocratic leadership, while in

others, it might face resistance.

ii. Leadership Style of Top Management:

 The leadership style of top executives and senior management sets the tone for the entire

organization. If top leaders exhibit autocratic tendencies, it may cascade down to lower levels

of management.

iii. Nature of Tasks and Decisions:

 The type of tasks and decisions within an organization can impact the appropriateness of

autocratic leadership. Urgent or critical situations may require quick decisions, making

autocratic leadership more suitable.

iv. Employee Experience and Education:

 The level of education and experience of employees can influence their receptiveness to

autocratic leadership. Highly skilled and experienced employees may prefer more participative

leadership styles.

v. Industry and Organizational Size:

 Industries and organizations with a more traditional or bureaucratic structure may be more

inclined towards autocratic leadership. Additionally, smaller organizations may find it easier to

implement and sustain autocratic leadership compared to larger, more complex organizations.
18

vi. External Environment:

 The external business environment, including market competition and economic conditions,

can influence leadership styles. In times of crisis or uncertainty, organizations might resort to

more autocratic approaches for quick and decisive actions.

vii. Leadership Training and Development:

 The level of training and development provided to leaders can impact their leadership style.

Leaders who have been trained in various leadership approaches may be more flexible in

adapting their style to different situations.

viii. Employee Expectations and Preferences:

 Employee expectations and preferences regarding leadership style can affect the effectiveness

of autocratic leadership. High levels of employee autonomy and involvement may clash with

autocratic tendencies, leading to dissatisfaction.

ix. Communication Channels:

 The effectiveness of communication channels within an organization can influence how

autocratic decisions are communicated. Transparent and open communication can mitigate

negative perceptions associated with autocratic leadership.

x. Feedback Mechanisms:

 The presence or absence of feedback mechanisms can impact the adaptability of autocratic

leaders. Leaders who actively seek and consider feedback may be more effective in mitigating

the negative consequences of their leadership style.

It's important to note that these factors are interconnected and may vary in importance across different

organizational contexts. Effective leadership often involves a nuanced understanding of these factors

and the ability to adapt leadership styles based on the specific situation and organizational needs.
19

2.5 Effect of Autocratic Leadership in Organization

The autocratic leadership style can have various effects on organizations, teams, and individuals. Here

are some common effects associated with autocratic leadership:

i. Efficiency and Quick Decision-Making:

 Positive Effect: Autocratic leaders can make decisions quickly and implement them efficiently,

which is beneficial in situations requiring swift action, such as during crises.

ii. Clear Direction and Structure:

 Positive Effect: Autocratic leadership provides clear direction and structure, which can be

beneficial in organizations with strict hierarchies or in tasks that require a high level of control.

iii. Reduced Ambiguity:

 Positive Effect: Autocratic leaders may reduce ambiguity by providing clear instructions and

expectations, helping employees understand their roles and responsibilities.

iv. Resistance and Low Morale:

 Negative Effect: Autocratic leadership can lead to resistance from employees who may feel

disempowered or undervalued. This resistance can contribute to low morale within the

organization.

v. Limited Creativity and Innovation:

 Negative Effect: Autocratic leadership may stifle creativity and innovation by not encouraging

input or ideas from lower-level employees. This can hinder the organization's ability to adapt to

change and find innovative solutions.

vi. High Turnover Rates:

 Negative Effect: Autocratic leadership styles can contribute to high turnover rates, as employees

may seek more participative and empowering work environments.

It's crucial to recognize that the effects of autocratic leadership can vary depending on the

specific context, the nature of tasks, and the preferences and expectations of the individuals

involved. Additionally, a blend of leadership styles or a situational approach to leadership may

be more effective in addressing the diverse needs of an organization.

CHAPTER III

Findings and Conclusion, Recommendation

Summary of Findings
The study found that autocratic leadership had a negative impact on employee motivation, job

satisfaction, and organizational effectiveness. Specifically, autocratic leaders were less responsive to

changes in the external environment, leading to a lack of adaptability and innovation. Leaders who

scored higher on the need for control were more likely to adopt an autocratic style.

These findings suggest that organizations should carefully consider the adoption of autocratic

leadership and explore alternative leadership styles that may lead to better outcomes for both

employees and the organization as a whole. To increase the efficiency and productivity of an