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CMA Foundation · Fundamentals of Business Economics and Management · Leadership and Motivation - Concepts and Theories

A marketing head at a Chennai firm tells her highly experienced designers to complete a campaign as they see fit, offering help only when requested and setting no deadlines of her own. Which statement best describes this style and its main risk?

The style is laissez-faire, where the leader leaves decisions and methods to the team and intervenes only when asked. Its main risk is lack of direction and coordination when members are not self-motivated or skilled enough to work without guidance.

  1. AAutocratic; it may cause fear and low creativity
  2. BLaissez-faire; it may cause lack of direction if team members are not self-drivenCorrect
  3. CDemocratic; it may slow decisions because everyone votes
  4. DTransactional; it may cause overpayment of rewards

Explanation

Giving the group near-total freedom with minimal leader involvement is laissez-faire. It works with skilled, self-motivated people but can produce drift and confusion otherwise. The other options describe different styles or risks.

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