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

The head of a Chennai software firm gives her team of experienced developers the project goal, then leaves them to choose methods, divide tasks and solve problems, intervening only when asked. Which style does this describe and what is a key risk?

This is the laissez-faire (free-rein) style, because the leader sets only the goal and leaves methods, task division and problem solving to the team. Its main risk is a lack of direction and coordination, especially when members are not skilled or self-motivated. Democratic leadership would involve active consultation.

  1. AAutocratic style; risk of low employee morale
  2. BDemocratic style; risk of slow consultation
  3. CLaissez-faire style; risk of lack of direction and coordinationCorrect
  4. DTransactional style; risk of excess rewards

Explanation

Giving the group freedom with minimal involvement is laissez-faire (free-rein) leadership. It can work with skilled, self-motivated staff, but the main risk is lack of direction and coordination. Democratic leadership involves the leader in group discussion and decision-making, which is not described here.

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