CMA Foundation · Fundamentals of Business Economics and Management · Leadership and Motivation - Concepts and Theories
Which statement best describes leadership as understood in management?
Leadership is the process of influencing and guiding people so that they willingly work towards common goals. It rests on influence and followership rather than force, budgeting or ownership, which is why compulsion-based or ownership-based descriptions do not define leadership.
- AThe process of influencing and guiding people to willingly work towards achieving common goalsCorrect
- BThe act of issuing written orders that employees must obey under penalty
- CThe function of preparing budgets and allocating funds to departments
- DThe legal power given to a person by virtue of owning a company
Explanation
Leadership is essentially the ability to influence others so that they willingly strive for group objectives. Option B describes coercive authority, not leadership. Option C describes budgeting and D describes ownership rights, neither of which captures the influence-based nature of leadership.
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