
To determine:
If the hierarchical or decentralized approach should be adopted for leadership.
Introduction:
Hierarchical and decentralized are approaches for a leadership which are applied according to the people to be managed and the business situation. The Hierarchical approach follows the step by step management structure like a pyramid. The less experienced and less skilled people are kept at the lowest level and they take directions from the supervisors and supervisors take directions from the managers at the higher level. On the other hand, the decentralized approach is applied where employees are self-managed and experienced. In the decentralized approach, employees are given their own responsibilities individually or in teams.

Answer to Problem 1DQ
Solution:
It is advisable to adopt the hierarchical approach to manage the travel agency business.
Explanation of Solution
Given information:
In the given case, there are 20 employees left in the travel agency and all the star employees have left the agency. The sales have fallen down due to the sloppy and unprofessional work habits of the remaining employees.
The Hierarchical approach follows the step by step management structure like a pyramid. The less experienced and less skilled people are kept at the lowest level and they take directions from the supervisors and supervisors take direction from the managers at the higher level. In the given case there are 20 employees left in the travel agency and all the star employees have left the agency. Hence there is a need for supervision and control over the employees, which is possible using the hierarchical approach.
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Chapter 15 Solutions
Understanding Management
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