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Autocratic leadership characterized by centralized decision-making, strict hierarchical control,

and limited subordinate participation remains prevalent in contemporary organizations despite

growing evidence of its paradoxical effects. This comprehensive literature review synthesizes

research published between 2010 and 2025 to examine how autocratic leadership shapes

employer-employee relationships and contributes to employee attrition. Drawing on social

exchange theory, psychological contract theory, and conservation of resources theory, this

review analyzes key mechanisms trust erosion, psychological contract violations,

organizational cynicism, and a suppressed voice that links autocratic practices to negative

employee outcomes such as reduced job satisfaction, increased workplace deviance, and

burnout. Contextual moderators including power distance, generational differences, and labor-

market conditions, along with sectoral variations across healthcare, education, technology,

manufacturing and public sectors, are explored to identify when autocratic leadership may

yield short-term benefits, and when it incurs long-term costs. The evidence demonstrates that

While directive leadership can enhance safety compliance and rapid decision-making during

Emergencies, its sustained application erodes engagement and precipitates talent drain.

Practical recommendations for human resource management and organizational development

are provided to mitigate autocratic leadership's deleterious effects and foster sustainable

organizational performance.