Case Study Enterprise Rent-a-Car

1) The difference between leadership and management is:
Leadership is setting a new direction or vision for a group that they follow, i.e.: a leader is the spearhead for that new direction. Management controls or directs people/resources in a group according to principles or values that have already been established.
The difference between leadership and management can be illustrated by considering what happens when you have one without the other.
Leadership Without Management
Leadership without Management sets a direction or vision that others follow, without considering too much how the new direction is going to be achieved. Other people then have to work hard in the trail that is left behind, picking up the pieces and making it work. Example: in Lord of the Rings, at the council of Elrond, Frodo Baggins rescues the council from conflict by taking responsibility for the quest of destroying the ring - but most of the management of the group comes from others.
Management Without Leadership
Management without leadership controls resources to maintain the status quo or ensure things happen according to already-established plans. Example: a referee manages a sports game, but does not usually provide "leadership" because there is no new change, no new direction - the referee is controlling resources to ensure that the laws of the game are followed and status quo is maintained.
Leadership Combined With Management
Leadership Combined With Management does both - it both sets a new direction and manages the resources to achieve it. Example: a newly elected president or prime minister.

2) Newspapers and old industries often flourished under autocratic leaders that stood watch over factory workers to make sure their factories kept humming. The point here is that it might not be easy to work under these circumstances, but the autocratic leadership style is certainly efficient.

Several studies suggest that organizations with many autocratic leaders have higher turnover and absenteeism than other organizations. With today's emphasis on joint decision-making and empowerment, employees just entering the workforce will be highly resistant to this management style. So the autocratic leadership style should not be used when you want to get your employees engaged in the decision-making process. Autocratic leaders are also not effective in situations where your employees might become resentful or fearful.
Finally, if your company is struggling with low morale, or is interested in building employee relationships, then an autocratic leadership style will only make the work environment worse.
3) A democratic style of leadership is one where the leader allows subordinates to be involved fully in decision-making, especially decisions that will affect the employees themselves. The effectiveness of a democratic style of leadership will depend on the business situation it is being applied to, but general benefits and limitations of this style can be examined using theories of motivation lists.

Maslow’s theory of the human hierarchy of needs suggests that employees will be more motivated if higher level needs; such as esteem needs and self-actualization are satisfied. A democratic style allows for autonomous team working, which is where employees work in separate groups that are not under close control of management. Without domination from authority, employees will feel more responsible for the work they do for the company. For example, in a production line quality circles may be created, which are groups formed by workers who will report to management regularly about the situation at work and contribute ideas on improvements. This way, they will feel like their group is an important contribution to the business’s success, so their esteem and social needs are both satisfied.

4) Laissez-faire style is derived from the French meaning ‘leave alone’; this is a loose leadership style. It allows employees to carry out activities freely within broad limits. It differs from the democratic style in that individuals are able to behave independently and make their own decisions, rather than coming together on an agreed course of action.

Laissez-faire management rests on the assumption that the workforce is highly competent both in conceptual and technical abilities; it makes sense for management to trust them. Benefits include: it optimizes creativity of the workforce; can contribute to high levels motivation for a team of highly qualified professionals. Therefore since they are highly qualified and are the one who communicates directly with the customers they can provide customers with better customer service.