Business Management - Assignment
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BUSINESS MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Describe the functional areas of Chic By Choice and its Hierarchy of Management.................1
Why is Communication central to Leadership and Management?.............................................3
What are the Current Drivers of Globalisation?.........................................................................4
Compare and contrast two chosen styles of Leadership and Management.................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Describe the functional areas of Chic By Choice and its Hierarchy of Management.................1
Why is Communication central to Leadership and Management?.............................................3
What are the Current Drivers of Globalisation?.........................................................................4
Compare and contrast two chosen styles of Leadership and Management.................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION
Leadership and management plays an important role within the working of the
organisation. Chic By Choice is a small-medium sized organisation that rent fresh clothes to
people through online markets. Estimated employees working for Chic By Choice are 146 and its
estimated revenue is 8 Million Dollars. Founders of this online marketing business is Filipa Neto
and Lara Vidreiro and they provide access for selecting fashionable and branded clothes. In this
report, different functional areas and hierarchy of management are explained. Effective inter-
departmental communication and current drivers of globalisation are also discussed. Comparison
between two styles of leadership or management is given further in the report.
MAIN BODY
Describe the functional areas of Chic By Choice and its Hierarchy of Management.
Chic By Choice is an online marketplace that allows people to rent fashionable clothes. It
operates across 15 European markets and provides access of brands like Valentino, Marchesa
Notte, Temperley London, Self- Portrait, etc. Hierarchy of management refers to organisational
structure that allows smooth functioning of business operations (Cheung, Yeung and Wu, 2018).
Chic By Choice operates its business operations by using functional structure. Functional
hierarchy of management sets up portion or group according to its purpose or role. Chic By
Choice divides roles and responsibilities to employees according to their knowledge and talents.
CEO is the head of the company who looks over framing plans and policies for business and
considered at top level of management. At middle level of management, there are senior
executives, CEO and departmental managers. The lower level of management consists of
workers and employees.
1
Leadership and management plays an important role within the working of the
organisation. Chic By Choice is a small-medium sized organisation that rent fresh clothes to
people through online markets. Estimated employees working for Chic By Choice are 146 and its
estimated revenue is 8 Million Dollars. Founders of this online marketing business is Filipa Neto
and Lara Vidreiro and they provide access for selecting fashionable and branded clothes. In this
report, different functional areas and hierarchy of management are explained. Effective inter-
departmental communication and current drivers of globalisation are also discussed. Comparison
between two styles of leadership or management is given further in the report.
MAIN BODY
Describe the functional areas of Chic By Choice and its Hierarchy of Management.
Chic By Choice is an online marketplace that allows people to rent fashionable clothes. It
operates across 15 European markets and provides access of brands like Valentino, Marchesa
Notte, Temperley London, Self- Portrait, etc. Hierarchy of management refers to organisational
structure that allows smooth functioning of business operations (Cheung, Yeung and Wu, 2018).
Chic By Choice operates its business operations by using functional structure. Functional
hierarchy of management sets up portion or group according to its purpose or role. Chic By
Choice divides roles and responsibilities to employees according to their knowledge and talents.
CEO is the head of the company who looks over framing plans and policies for business and
considered at top level of management. At middle level of management, there are senior
executives, CEO and departmental managers. The lower level of management consists of
workers and employees.
1
Illustration 1: Hierarchy of Management
Source:(Functional Organisational Structure)
Following are explained functional areas of Chic By Choice:
Human Resource Management: This is the most important function of every business
organisation. HRM aims at recruiting and selecting employees who can come up with innovative
and creative ideas that can lead to accomplish overall goals and objectives of Chic By Choice.
HRM also focuses on motivating and satisfying employees so that they retain in business and
also put their efforts in right direction to accomplish task.
Information Technology: Chic By Choice is an online marketplace, therefore, it requires the
systems that can effectively promote the products of company. IT is a system which allows
information usage and communication to Chic By Choice for offering new products and services
to target markets (Harris and Jones, 2018).
Marketing and Sales: This functional area aims at identifying opportunities available in the
target markets. Marketing function focuses on developing effective advertising strategies and
plans that can attract large number of customers and leads to increase sales and profits of the
company. Company makes sure that marketing mix is used appropriately so that it can lead to
bring effective results.
Purchase and Production: This functional area of Chic By Choice aims at supervising activities
related to purchase of clothes and its production. It also includes purchasing, supervising
activities of production, logistics as well.
Research and Development:This functional department focuses on identifying needs and wants
of customers, trends in the market place for developing and introducing products accordingly.
2
Source:(Functional Organisational Structure)
Following are explained functional areas of Chic By Choice:
Human Resource Management: This is the most important function of every business
organisation. HRM aims at recruiting and selecting employees who can come up with innovative
and creative ideas that can lead to accomplish overall goals and objectives of Chic By Choice.
HRM also focuses on motivating and satisfying employees so that they retain in business and
also put their efforts in right direction to accomplish task.
Information Technology: Chic By Choice is an online marketplace, therefore, it requires the
systems that can effectively promote the products of company. IT is a system which allows
information usage and communication to Chic By Choice for offering new products and services
to target markets (Harris and Jones, 2018).
Marketing and Sales: This functional area aims at identifying opportunities available in the
target markets. Marketing function focuses on developing effective advertising strategies and
plans that can attract large number of customers and leads to increase sales and profits of the
company. Company makes sure that marketing mix is used appropriately so that it can lead to
bring effective results.
Purchase and Production: This functional area of Chic By Choice aims at supervising activities
related to purchase of clothes and its production. It also includes purchasing, supervising
activities of production, logistics as well.
Research and Development:This functional department focuses on identifying needs and wants
of customers, trends in the market place for developing and introducing products accordingly.
2
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Chic By Choice aims at developing innovative and creative ideas to develop new products or
services and/or improving current products in order to effectively meet the demands of
customers (Dooley and et.al., 2018).
Finance and Accounting: This functional area ensures that organisation have required funds for
operating, monitoring and controlling different activities and operations (Hoogvelt, 2018).
Finance and accounting department also provides budget to various functional areas of
organisation in order to ensure smooth working.
Customer Service: This functional department of Chic By Choice aims at satisfying customers.
Customer Service aims at taking care of customer's needs and wants by providing them with high
quality of services.. They provide and deliver professional help to customers before, after and
during the sales or meeting requirements of customers.
Why is Communication central to Leadership and Management?
Effective inter-departmental communication is necessary and important in order to
maintain smooth working of business activities and operations (Castillo and Hallinger, 2018).
Leaders and managers makes sure that different functional areas of Chic By Choice
communicates effectively that leads to transfer of important message or information within
organisation. Both leader and manager uses different approaches and acts as a central for
communication within organisation and different departments. Strategic policies and plans are
made by leaders in order to accomplish organisational objectives and those are communicated
effectively with employees. For employees to understand strategic directions, effective
communication is made by leaders and managers.
Leaders provides motivation to employees by clarifying and providing information
regarding vision and mission of organisation. They also guide and direct employees in order to
complete the task effectively and bring effective results. Effective communication also links
different processes of management within business organisation (Communication is central to
modern-day leadership, 2017). Leaders and managers can effectively build employee relations
through communication and brings results of employees retention and their satisfaction.
Communication also leads to develop departmental relationship which brings benefits for overall
organisation and is explained as follows:
Production: Interdepartmental communication between sales and production department
benefits overall organisation (Kutz, 2018). The increased sales and demand of products needs to
3
services and/or improving current products in order to effectively meet the demands of
customers (Dooley and et.al., 2018).
Finance and Accounting: This functional area ensures that organisation have required funds for
operating, monitoring and controlling different activities and operations (Hoogvelt, 2018).
Finance and accounting department also provides budget to various functional areas of
organisation in order to ensure smooth working.
Customer Service: This functional department of Chic By Choice aims at satisfying customers.
Customer Service aims at taking care of customer's needs and wants by providing them with high
quality of services.. They provide and deliver professional help to customers before, after and
during the sales or meeting requirements of customers.
Why is Communication central to Leadership and Management?
Effective inter-departmental communication is necessary and important in order to
maintain smooth working of business activities and operations (Castillo and Hallinger, 2018).
Leaders and managers makes sure that different functional areas of Chic By Choice
communicates effectively that leads to transfer of important message or information within
organisation. Both leader and manager uses different approaches and acts as a central for
communication within organisation and different departments. Strategic policies and plans are
made by leaders in order to accomplish organisational objectives and those are communicated
effectively with employees. For employees to understand strategic directions, effective
communication is made by leaders and managers.
Leaders provides motivation to employees by clarifying and providing information
regarding vision and mission of organisation. They also guide and direct employees in order to
complete the task effectively and bring effective results. Effective communication also links
different processes of management within business organisation (Communication is central to
modern-day leadership, 2017). Leaders and managers can effectively build employee relations
through communication and brings results of employees retention and their satisfaction.
Communication also leads to develop departmental relationship which brings benefits for overall
organisation and is explained as follows:
Production: Interdepartmental communication between sales and production department
benefits overall organisation (Kutz, 2018). The increased sales and demand of products needs to
3
be communicated with production function so that it can also increase manufacturing of products
and bring effective results.
Customer Service: Production department communicates with customer service department
regarding updated features and characteristics of products or services that meets demands of
customers. Customer service department being aware of all important information can easily and
effectively provide satisfaction to customers.
Sales and Marketing: This functional department aims at developing market plan. Doing
market research for developing or improving current products that can meet demands of
customers. Therefore, it needs to be communicated with production department so that they
manufacture products accordingly and meet demands of customers.
Communication acts as a central to leadership and management as leaders engage
employee in business activities by effective communications. Team involvement activities are
held by leaders in order to have effective communications between them which may bring
innovative and creative ideas. Chic By Choice aims that leaders and managers are skilled
communicators who build strong relationship with different stakeholders of company and brings
effective results.
What are the Current Drivers of Globalisation?
Globalisation refers to developing business on international and global scale. Chic By
Choice aims at developing its business organisation and entering in global markets. Various
factors acts as a driver for globalisation such as technological advancements, political factors,
legal and regulatory frameworks and socio-cultural factors (Lawrence and Almas, 2018).
Following is given the explanation of current drivers of Globalisation and its impacts on
business:
Internet: Growing use of internet and social networking sites also acts as a factor or driver of
globalisation. Advancements in telecommunications and automation ensures to increase
production and easy flow of products and services in international markets. Use of internet
brings effective benefits for Chic By Choice as it operates its business in online markets.
Technological Advancements:Various technological advancement allows easy transportation of
people, products and ideas across borders. Transportation facilities are developed which allows
organisation to easily export and import products. This factor brings effective benefits for
organisation to grow in international markets and increase its market share as well.
4
and bring effective results.
Customer Service: Production department communicates with customer service department
regarding updated features and characteristics of products or services that meets demands of
customers. Customer service department being aware of all important information can easily and
effectively provide satisfaction to customers.
Sales and Marketing: This functional department aims at developing market plan. Doing
market research for developing or improving current products that can meet demands of
customers. Therefore, it needs to be communicated with production department so that they
manufacture products accordingly and meet demands of customers.
Communication acts as a central to leadership and management as leaders engage
employee in business activities by effective communications. Team involvement activities are
held by leaders in order to have effective communications between them which may bring
innovative and creative ideas. Chic By Choice aims that leaders and managers are skilled
communicators who build strong relationship with different stakeholders of company and brings
effective results.
What are the Current Drivers of Globalisation?
Globalisation refers to developing business on international and global scale. Chic By
Choice aims at developing its business organisation and entering in global markets. Various
factors acts as a driver for globalisation such as technological advancements, political factors,
legal and regulatory frameworks and socio-cultural factors (Lawrence and Almas, 2018).
Following is given the explanation of current drivers of Globalisation and its impacts on
business:
Internet: Growing use of internet and social networking sites also acts as a factor or driver of
globalisation. Advancements in telecommunications and automation ensures to increase
production and easy flow of products and services in international markets. Use of internet
brings effective benefits for Chic By Choice as it operates its business in online markets.
Technological Advancements:Various technological advancement allows easy transportation of
people, products and ideas across borders. Transportation facilities are developed which allows
organisation to easily export and import products. This factor brings effective benefits for
organisation to grow in international markets and increase its market share as well.
4
Political Factors: Government has liberalized various rules and regulations regarding
international trade that brings benefits for organisation to move on global level. Tariff rates are
lowered down allowing Chic By Choice to operate its business in international markets and
increase profits. Whereas, some political regulations may also bring negative impacts on
business in global markets (Psimmenos, 2018).
International Trade: This factor encourages interdependence between different countries and
also strengthen their relationship. International trade has developed in recent years which has
lead to removal or reduction of trade barriers and allowing business to imports and export goods
and services. Therefore, it acts as driver of globalisation and allow business organisation to
increase production, sales and profits of company (Dooley and et.al., 2018).
International Investment: Commercial loans, Foreign Portfolio Investment, Foreign Direct
Investments(FDI) and various other investments encourages business organisation to gain
benefits of investments in international markets. Therefore, international investments leads to
drive globalisation and it has also increased economic integration between different countries.
Competition: Increased competition in every industry makes organisation to go for globalisation
and develop their business so that they can sustain in markets. Organisations are forced to enter
in new markets in order to sustain their position and profits.
Joint Ventures and Franchising: Business organisation adopts to do joint ventures with other
organisation in order to develop their business and it also leads to acts as a driver for
globalisation (Shams, Vrontis and Weber, 2018). This brings effective impacts for Chic By
Choice to lower down the production and operation cost and increase productivity and
profitability.
Cost Factors: This refers that cost of production and operation may vary from country to
country and in order to take advantage of this factors, business organisation chooses to go
globalised. Sourcing efficiency, large scale of economies lower downs the cost of production
encourages business organisation to enter in international markets and brings positive impacts.
Compare and contrast two chosen styles of Leadership and Management.
Various styles of leadership and management are selected by organisation for effectively
managing day-to-day activities of company and also while directing and guiding employees.
Different styles have different impact on the employees and overall working of the organisation.
Following is given the comparison between two styles of leadership.
5
international trade that brings benefits for organisation to move on global level. Tariff rates are
lowered down allowing Chic By Choice to operate its business in international markets and
increase profits. Whereas, some political regulations may also bring negative impacts on
business in global markets (Psimmenos, 2018).
International Trade: This factor encourages interdependence between different countries and
also strengthen their relationship. International trade has developed in recent years which has
lead to removal or reduction of trade barriers and allowing business to imports and export goods
and services. Therefore, it acts as driver of globalisation and allow business organisation to
increase production, sales and profits of company (Dooley and et.al., 2018).
International Investment: Commercial loans, Foreign Portfolio Investment, Foreign Direct
Investments(FDI) and various other investments encourages business organisation to gain
benefits of investments in international markets. Therefore, international investments leads to
drive globalisation and it has also increased economic integration between different countries.
Competition: Increased competition in every industry makes organisation to go for globalisation
and develop their business so that they can sustain in markets. Organisations are forced to enter
in new markets in order to sustain their position and profits.
Joint Ventures and Franchising: Business organisation adopts to do joint ventures with other
organisation in order to develop their business and it also leads to acts as a driver for
globalisation (Shams, Vrontis and Weber, 2018). This brings effective impacts for Chic By
Choice to lower down the production and operation cost and increase productivity and
profitability.
Cost Factors: This refers that cost of production and operation may vary from country to
country and in order to take advantage of this factors, business organisation chooses to go
globalised. Sourcing efficiency, large scale of economies lower downs the cost of production
encourages business organisation to enter in international markets and brings positive impacts.
Compare and contrast two chosen styles of Leadership and Management.
Various styles of leadership and management are selected by organisation for effectively
managing day-to-day activities of company and also while directing and guiding employees.
Different styles have different impact on the employees and overall working of the organisation.
Following is given the comparison between two styles of leadership.
5
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Autocratic leadership style:
In this leadership style, leader holds responsibilities and authorities. Leaders does not
consults or involve employees in the decision making process (Sousa and Rocha, 2019). Leaders
makes decisions and then communicate the same with employees and then provide guidance for
implementation. Organisation with this leadership style is not much flexible. Autocratic leaders
aims at accomplishing goals and objectives of the company rather than satisfying employees.
Donald Trump and Albert J Dunlap are examples of autocratic leaders whose main focus is to get
the work done. Centralization of power is present in autocratic leadership style, whereas in
democratic leadership style, authority is delegated among employees.
Democratic leadership style:
This leadership style focuses on providing satisfaction to employees by involving them in
decision making process (Difference Between Autocratic and Democratic Leadership, 2017).
Democratic style of leadership also known as participative style and is centred on employees
involvement and contribution within organisation. Chic By Choice aims at implementing this
style of leadership for managing activities and directing employees. Democratic leaders provide
guidance to employees using examples and persuasion rather than force or fear. Leaders with
democratic style also serves as a moderator of suggestions and ideas in the company. Democratic
leaders ask for ideas and suggestions from employees and creates friendly working environment.
Leaders encourages open communication and freedom of expression within organisation.
Modern globalized organisation needs to ensure that democratic style is adopted by
leaders and managers as it suits the best (Trimble, 2019). Because this leadership style aims at
effectively engaging employees in business activities and operations that leads to provide
encouragement and satisfaction to them. Satisfied employees put their best in business operations
and also come up with innovative and creative ideas which brings effectiveness in operations.
Democratic leaders are relation oriented and develops effective employee relations which brings
better results for both employer and employee. But democratic leadership style fails to maintain
effective control over employees that may bring negative impacts on working of organisation.
Therefore, autocratic leadership style needs to be used when employees and team members are
expert and experienced who can effectively brings better results and outcomes.
6
In this leadership style, leader holds responsibilities and authorities. Leaders does not
consults or involve employees in the decision making process (Sousa and Rocha, 2019). Leaders
makes decisions and then communicate the same with employees and then provide guidance for
implementation. Organisation with this leadership style is not much flexible. Autocratic leaders
aims at accomplishing goals and objectives of the company rather than satisfying employees.
Donald Trump and Albert J Dunlap are examples of autocratic leaders whose main focus is to get
the work done. Centralization of power is present in autocratic leadership style, whereas in
democratic leadership style, authority is delegated among employees.
Democratic leadership style:
This leadership style focuses on providing satisfaction to employees by involving them in
decision making process (Difference Between Autocratic and Democratic Leadership, 2017).
Democratic style of leadership also known as participative style and is centred on employees
involvement and contribution within organisation. Chic By Choice aims at implementing this
style of leadership for managing activities and directing employees. Democratic leaders provide
guidance to employees using examples and persuasion rather than force or fear. Leaders with
democratic style also serves as a moderator of suggestions and ideas in the company. Democratic
leaders ask for ideas and suggestions from employees and creates friendly working environment.
Leaders encourages open communication and freedom of expression within organisation.
Modern globalized organisation needs to ensure that democratic style is adopted by
leaders and managers as it suits the best (Trimble, 2019). Because this leadership style aims at
effectively engaging employees in business activities and operations that leads to provide
encouragement and satisfaction to them. Satisfied employees put their best in business operations
and also come up with innovative and creative ideas which brings effectiveness in operations.
Democratic leaders are relation oriented and develops effective employee relations which brings
better results for both employer and employee. But democratic leadership style fails to maintain
effective control over employees that may bring negative impacts on working of organisation.
Therefore, autocratic leadership style needs to be used when employees and team members are
expert and experienced who can effectively brings better results and outcomes.
6
CONCLUSION
Both leaders and managers acts as a central of communication and brings effective
results and outcomes. Different leadership styles used by leaders aims at motivating and
encouraging employees so that they can come up with innovation and creation. Leadership style
chose by organisation brings effective results and accomplishment of goals and objectives.
Effective communication is developed by leaders and managers that leads to develop inter-
departmental relationship. Different factors acts as a driver for globalisation and makes
organisation to enter in international markets. Globalisation brings positive as well as negative
impacts to the organisation.
7
Both leaders and managers acts as a central of communication and brings effective
results and outcomes. Different leadership styles used by leaders aims at motivating and
encouraging employees so that they can come up with innovation and creation. Leadership style
chose by organisation brings effective results and accomplishment of goals and objectives.
Effective communication is developed by leaders and managers that leads to develop inter-
departmental relationship. Different factors acts as a driver for globalisation and makes
organisation to enter in international markets. Globalisation brings positive as well as negative
impacts to the organisation.
7
REFERENCES
Books And Journal
Castillo, F. A. and Hallinger, P., 2018. Systematic review of research on educational leadership
and management in Latin America, 1991–2017. Educational Management Administration
& Leadership. 46(2). pp.207-225.
Cheung, F., Yeung, D. Y. and Wu, A. M., 2018. Employees’ perception of leadership styles and
successful aging in the workplace. Journal of Career Development. 45(6). pp.610-624.
Dooley, P. P. and et.al., 2018. Critical value factors in business intelligence systems
implementations. In Analytics and data science (pp. 55-78). Springer, Cham.
Harris, A. and Jones, M., 2018. The dark side of leadership and management.
Hoogvelt, A., 2018. Globalisation and imperialism: Wars and humanitarian intervention.
In Revitalising communities in a globalising world (pp. 31-56). Routledge.
Kutz, M. R., 2018. Leadership and management in athletic training. Jones & Bartlett Learning.
Lawrence, G. and Almas, R., 2018. Globalisation, localisation and sustainable livelihoods.
Routledge.
Psimmenos, I., 2018. Globalisation and employee participation. Routledge.
Shams, S. R., Vrontis, D. and Weber, Y., 2018. Strategic innovation management: a cross-
functional vision to be materialised. In Business Models for Strategic Innovation (pp. 27-
36). Routledge.
Sousa, M. J. and Rocha, Á., 2019. Leadership styles and skills developed through game-based
learning. Journal of Business Research. 94. pp.360-366.
Trimble, J. E., 2019. Exploring Culturally Diverse Leadership Styles: A Mindset and
Multicultural Journey.
Online
Communication is central to modern-day leadership. 2017. [Online]. Available through:
<https://leadershipgroup.co.ke/publication/24/Communication-is-central-to-modern-day-
leadership>
Organisational Issues. 2019. [Online]. Available through:
<http://www.technologyuk.net/software-development/project-management/
organisational-issues.shtml>
8
Books And Journal
Castillo, F. A. and Hallinger, P., 2018. Systematic review of research on educational leadership
and management in Latin America, 1991–2017. Educational Management Administration
& Leadership. 46(2). pp.207-225.
Cheung, F., Yeung, D. Y. and Wu, A. M., 2018. Employees’ perception of leadership styles and
successful aging in the workplace. Journal of Career Development. 45(6). pp.610-624.
Dooley, P. P. and et.al., 2018. Critical value factors in business intelligence systems
implementations. In Analytics and data science (pp. 55-78). Springer, Cham.
Harris, A. and Jones, M., 2018. The dark side of leadership and management.
Hoogvelt, A., 2018. Globalisation and imperialism: Wars and humanitarian intervention.
In Revitalising communities in a globalising world (pp. 31-56). Routledge.
Kutz, M. R., 2018. Leadership and management in athletic training. Jones & Bartlett Learning.
Lawrence, G. and Almas, R., 2018. Globalisation, localisation and sustainable livelihoods.
Routledge.
Psimmenos, I., 2018. Globalisation and employee participation. Routledge.
Shams, S. R., Vrontis, D. and Weber, Y., 2018. Strategic innovation management: a cross-
functional vision to be materialised. In Business Models for Strategic Innovation (pp. 27-
36). Routledge.
Sousa, M. J. and Rocha, Á., 2019. Leadership styles and skills developed through game-based
learning. Journal of Business Research. 94. pp.360-366.
Trimble, J. E., 2019. Exploring Culturally Diverse Leadership Styles: A Mindset and
Multicultural Journey.
Online
Communication is central to modern-day leadership. 2017. [Online]. Available through:
<https://leadershipgroup.co.ke/publication/24/Communication-is-central-to-modern-day-
leadership>
Organisational Issues. 2019. [Online]. Available through:
<http://www.technologyuk.net/software-development/project-management/
organisational-issues.shtml>
8
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Difference Between Autocratic and Democratic Leadership. 2017. [Online]. Available through:
<https://keydifferences.com/difference-between-autocratic-and-democratic-
leadership.html>
9
<https://keydifferences.com/difference-between-autocratic-and-democratic-
leadership.html>
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