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CMA Final · Entrepreneurship and Startup · Leadership

Ananya, founder of a Pune-based agritech startup, notices that her team of experienced field engineers works best when she sets the broad vision, then leaves them free to choose methods, intervening only when asked. Which leadership style is she using?

She is using laissez-faire (delegative) leadership. The leader sets a broad vision, gives capable people freedom to decide methods, and intervenes only when asked. It differs from autocratic leadership, where the leader controls decisions, and from transactional leadership, which depends on reward-and-penalty exchanges.

  1. AAutocratic leadership
  2. BLaissez-faire (delegative) leadershipCorrect
  3. CTransactional leadership
  4. DPaternalistic leadership

Explanation

Laissez-faire or delegative leadership gives skilled team members freedom in how they work, with the leader stepping in only on request. Autocratic leadership would involve the founder deciding methods herself. Transactional leadership relies on rewards and penalties tied to performance, which is not described here.

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