Should organisations be run as benevolent dictatorship?

I suggest that the word 'Should' is misplaced and might be replaced with 'Can'.

If rationality, governance principles, and people-management principles are to be complied with, then benevolent dictatorship is hard to justify. If on the other hand you pursue outcomes while still staying within the legal threshold, then dictatorship may be the way to go.

CEOship, by its very nature, has a dimension of dictatorship anyway. The question is how far can the CEO push his/her judgement and desires without due consultation?

'Can' benevolent dictatorship work? It certainly can work in certain contexts with certain people. Is it a guarantee of outcome - no.

'Should' benevolent dictatorship exist? It depends on the individual, the nature of the organisation and the context; and even then it is no guarantee of outcome.

As with most things in life, there are very few universal truths.