Implementing Laissez-faire Leadership Style for Innovation in Sim's Hardware

Running head: BUSINESS MANAGEMENT
Business Management
NAME OF STUDENT:
NAME OF COLLEGE:
AUTHORS NOTE:

BUSINESS MANAGEMENT
Executive Summary
The most suitable leadership style which could be implemented in Sim’s Hardware in order to
foster innovation and creativity in the workplace of the company is laissez-faire leadership style
as it provides authority to the employees of the company to take their own decisions without the
interference of the leaders and managers which increases their motivation and therefore increases
their efficiency and productivity. There are certain disadvantages of laissez-faire leadership style
such as it works only for experienced teams, it fails to implement new changes in an effective
manner, creates confusion regarding roles and responsibilities of the team members and therefore
it is the responsibility of the leader or managers to increase the efficiency of the laissez-faire
leadership style by providing training to the team members, by clarifying the roles and
responsibilities of the team members and by highlighting the benefits of changes. There are
various risks which are associated with innovation in an organization such as operational risks,
financial risks and commercial risks and therefore companies must focus on mitigating the risks
of innovation by seeking professional advice and entering into joint ventures and licensing.
1

BUSINESS MANAGEMENT
Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Problem Analysis.............................................................................................................................3
Recommendation.............................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
2

BUSINESS MANAGEMENT
Introduction
Modern day business organizations must focus on constantly innovating their products and
services in order to stay competitive in the market and in order to gain a competitive advantage
in the market. In order to foster innovation and creativity in their workplaces, organizations must
focus on promoting an open organization culture in the workplace which enables the employees
to freely share and communicate their views without the fear of being punished or ridiculed.
However there are certain risks which are associated with innovation in an organization and
therefore companies must focus on mitigating the risks associated with innovation in order to
reap the benefits of innovation.
Problem Analysis
6. The different types of leadership style are as follows:
Autocratic Leadership-Autocratic leadership style is a uni-dimensional leadership style which
provides full power and authority to the leaders. In the autocratic style of leadership, the leader
makes all the decision by himself without consulting any of his subordinates or team members.
An autocratic leader takes all the crucial calls and decision in a group which are then
communicated to the team members and then the team members are then expected to work on
those instructions immediately. In other words the leader is the ultimate decision maker in
autocratic leadership style.
Democratic Leadership- The democratic leadership style is participative in nature in which the
leader involves the team members while taking critical decisions. As stated by Farooq et al.
(2018) the democratic style of leaderships works best in the organization where the team
members are highly skilled and experienced. The most crucial part of the democratic style of
leadership is that the communication is upward to downward in the democratic style of
leadership. In the democratic style of leadership, the leaders are required to be creative,
intelligent, considerate and competent in nature.
Coaching Leadership- In this style of leadership, the leader and team members act as mentors
and coaches to their team members and subordinates. There are various benefits of the coaching
3