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ACCA Strategic Professional · Strategic Business Leader · Qualities of leadership

Aldo, chief executive of Veridian Motors, tells his board that employees must see themselves as part of a mission to make clean transport accessible to everyone. He regularly uses stories and symbols, and sets high expectations of himself as a role model. Which element of transformational leadership is most clearly being used?

The leader is using idealised influence and inspirational motivation, which are core components of transformational leadership. Aldo communicates a compelling mission through stories and symbols and acts as a role model. Contingent reward and management by exception are transactional, while laissez-faire means avoiding leadership responsibilities.

  1. AManagement by exception, correcting deviations from standard
  2. BContingent reward, exchanging pay for output
  3. CIdealised influence and inspirational motivation, through role modelling and a compelling missionCorrect
  4. DLaissez-faire, avoiding involvement in decisions

Explanation

Using stories, symbols, a shared mission and personal role modelling reflects idealised influence and inspirational motivation, key components of transformational leadership. Contingent reward and management by exception are transactional behaviours, and laissez-faire involves avoiding leadership.

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