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

At Sharma Textiles, Ms. Iyer holds no formal supervisory post, yet colleagues regularly follow her suggestions and seek her advice because of her expertise and personality. Which feature of leadership does this illustrate?

The case shows that leadership can emerge from personal influence, expertise and personality even without a formal position. Colleagues follow Ms. Iyer voluntarily, so her leadership is informal. Leadership therefore does not depend solely on formal authority, and it always requires followers.

  1. ALeadership is based on formal authority alone
  2. BLeadership can arise from personal influence and not only from a formal positionCorrect
  3. CLeadership means the same as management in every respect
  4. DLeadership requires the absence of followers

Explanation

Ms. Iyer influences others without a formal post, showing that leadership can be informal and rooted in personal qualities. Option A is wrong because her influence has no formal authority behind it. Option C is wrong because managers hold formal positions while leaders need not. Option D contradicts the idea of leadership, which needs followers.

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