08:Identify and explain two possible advantages for Steppa of using a democratic leadership style.[6]

[Dania]

Steppa sells household goods such as plates and brushes. Last year sales in Steppa’s 200 shops increased but profit fell by 80% to $5m. Steppa’s Human Resources Director said: ‘All retailers are finding this stage of the business cycle challenging. Steppa has to reorganise the business. This will mean redundancy for 1800 shop workers. Steppa plans to create 100 new jobs in the marketing department at head office to help maintain customer loyalty. The company is working with trade unions to carry out these changes.’ Steppa has to decide whether to select the candidates for the new jobs from the workers being made redundant.

08:Identify and explain two possible advantages for Steppa of using a democratic leadership style.[6]

Possible KN Points:
>Improves motivation OR sense of belonging.
>Help keep worker loyalty.
>Creates time to do other jobs.
>Positive work environment OR better relations between managers and workers.
> Workers have better understanding of business’ objectives.