Skip to content

CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

The head of a Chennai software firm tells her team of developers, 'Here is the project goal; decide among yourselves how to reach it, and I will step in only if you ask.' Which leadership style is this, and what is its main risk?

This is laissez-faire leadership, because the leader sets the goal and leaves the methods wholly to the team, intervening only on request. Its main risk is lack of direction and weak coordination, especially when team members are inexperienced or need guidance to align their efforts.

  1. AAutocratic style; the risk is low morale from rigid control
  2. BLaissez-faire style; the risk is lack of direction and coordinationCorrect
  3. CDemocratic style; the risk is slow decisions because the leader overrules everyone
  4. DTransactional style; the risk is excessive reliance on group votes

Explanation

Giving the goal and leaving the means entirely to the group with minimal leader involvement is laissez-faire. Its typical weakness is lack of direction, overlapping effort and poor coordination. The autocratic option is wrong because the leader is not controlling the work.

Did you get it right without looking?

One question tells you little. A timed set on Planning, Organizing, Staffing and Leading shows your real accuracy, how long you take and where you lose marks.

Practise Planning, Organizing, Staffing and LeadingFree diagnostic mock

More Planning, Organizing, Staffing and Leading questions