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Read the scenario below and answer the questions that follow.

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JONNY'S GLASS (PTY) LTD (JG) 

Jonny's Glass (Pty) Ltd specialises in the manufacturing of glass. The company has limited capital, which prevents growth. Jonny wants to convert his company to one that will enable him to invite the public to buy shares.

  1. Identify the form of ownership represented by Jonny's Glass (Pty) Ltd.
  2. Describe how the following factors may influence the success or failure of the form of ownership referred to in QUESTION
    (a) Division of profits
    (b) Legislation
  3. Recommend a suitable form of ownership that will allow Jonny     to sell shares to the public.
  4. Name the document that Jonny's Glass will publish to invite the public to buy shares.

1 Answer

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Best answer

1. Bureaucratic leadership style

2.  Effectiveness of bureaucratic leadership style   

Positives:

  • Managers ensure that rules/regulations are always followed accurately.
  • Works well when tight control measures need to be implemented/ followed.
  • Health and safety are increased in a dangerous workplace, e.g. construction sites/mines.
  • Followers know what is expected of them because of detailed instructions.
  • The quality of work can be ensured.
  • Ensures accountability to the general public/customers.
  • Ultimate/Strict control over systems/procedures ensure high quality output.

 Negatives:

  • Complicated official rules may seem unnecessary/time consuming.
  • Leaders may acquire power/become authoritative and can disregard inputs from others.
  • Very little room for error, so workers feel they are not always treated with dignity.
  • Lack of creativity/innovation/self-fulfillment may lead to stagnation/ decrease in productivity.
  • Employees may feel they have become objects of work√ and are not treated as humans.

3.  Reasons why employees prefer a laissez-faire/free-reign leadership style.

  • Workers/Followers are allowed to make their own decisions.
  • Subordinates have maximum freedom and can work independently.
  • Leader motivates workers by trusting them to do things themselves/ on their own.
  • Authority is delegated, which can motivate workers and increase productivity.
  • Subordinates are experts and know what they want/can take responsibility for their actions.
  • Suitable for coaching/mentoring to motivate employees to achieve more/better things.
  • Empowers competent followers as they are completely trusted to do their job.
  • Individual team members may improve/develop leadership skills.

answered by Master (629k points)
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