New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    Evaluate the following statements regarding leadership

    styles and identify the option that accurately reflects their correctness or incorrectness: Statement 1: A democratic leadership style encourages collective decision-making, where team members actively participate in the process, fostering a sense of shared ownership and responsibility. Statement 2: Laissez-faire leadership promotes a hands-off approach, providing minimal guidance and allowing team members significant autonomy in their work, often leading to increased creativity, productivity and innovation. Statement 3: An autocratic leadership style centralizes decision-making authority with the leader, who dictates tasks, sets expectations, and expects strict compliance, emphasizing efficiency and control in achieving goals.
    A All statements are correct. Correct Answer Incorrect Answer
    B Only statements 1 and 2 are correct. Correct Answer Incorrect Answer
    C Only statements 2 and 3 are correct. Correct Answer Incorrect Answer
    D Only statements 1 and 3 are correct. Correct Answer Incorrect Answer
    E All statements are incorrect. Correct Answer Incorrect Answer

    Solution

    Statement 1 is correct. Democratic leadership emphasizes collaboration and inclusivity in decision-making, valuing the input and perspectives of team members. Statement 2 is incorrect. Laissez-faire leadership, while granting autonomy, often leads to a lack of direction, decreased productivity, and potential conflicts due to the absence of clear guidance. Statement 3 is correct. Autocratic leadership is characterized by a top-down approach, where the leader exercises control and makes decisions without significant input from the team.

    Practice Next