CMA Final · Entrepreneurship and Startup · Leadership
In the full range leadership model, a founder who raises team performance by offering rewards for meeting agreed targets and applying corrective action when targets are missed is displaying which style?
The style is transactional leadership. It works through an exchange between leader and team, with rewards for meeting agreed targets and corrective action for deviations. Transformational leadership relies on vision and inspiration, while laissez-faire leaves the team largely unguided.
- ATransactional leadershipCorrect
- BTransformational leadership
- CLaissez-faire leadership
- DCharismatic leadership
Explanation
Transactional leadership rests on an exchange: rewards for performance and corrections for deviations. Transformational leadership instead inspires followers through vision and intellectual stimulation, not mainly through contingent rewards. Laissez-faire involves avoiding decisions and giving little direction.
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