CMA Foundation · Fundamentals of Business Economics and Management · Leadership and Motivation - Concepts and Theories
A CEO of a Bengaluru start-up inspires staff with a compelling vision, encourages them to look beyond self-interest and stimulates innovation. Which leadership style is this?
This is transformational leadership. The leader inspires followers with a shared vision, stimulates innovation and motivates them to rise above self-interest. Transactional leadership instead works through exchange of rewards and penalties for performance, and autocratic leadership relies on command.
- ATransformationalCorrect
- BTransactional
- CAutocratic
- DBureaucratic
Explanation
Transformational leaders inspire through vision, intellectual stimulation and individual attention, moving followers beyond self-interest. Transactional leadership relies on rewards and penalties in exchange for performance, so it does not fit.
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