No one likes to work in a company run by a leader with a dictator’s mindset. Just like in countries run by despots, there is always simmering discontent bubbling under the surface. Fear can be an effective motivator especially in the short-term, but you will never get someone’s best effort. And, in the long run, revolutionaries will start to emerge and people will find small ways to sabotage your efforts. Organizational energy ends up being channeled in increasingly dysfunctional ways. Moreover, the people that dictators put in leadership positions tend to be more sinister and less capable than themselves creating even more problems. It is all a recipe for disaster.