Amrita completed her Master’s Degree in Fashion Technology from Paris. After coming back to India, she observed a shift towards formal wear in the fashion industry. To grab this opportunity, she opened a boutique in a posh area of Delhi.
She used environmental friendly method of production. To make the store run efficiently, she divided the work into small tasks so that her employees are well trained and the wastage can be reduced. Similar activities were grouped together and departments were formed.
She assigned responsibility to her sales staff in the form of clear cut targets and gave them authority to close the deal by offering a discount of 5% but the decision to give any further discount rests with her. The departments were headed by the specialists who were appointed through placement agencies and management consultants. Levels were created in the organization and helped in establishing reporting relationship.
In the earlier period of her venture, she asked her employees to put in extra hours of work. In return, she promised to give them special incentive within one year. Her business was doing well and she honours her commitment by giving them bonus.
Amrita was a good leader. She develops plans and makes decisions in consultation with her subordinates. However, she was biased with her female employees when it comes to solving conflicts among her staff.
Amrita develops plans and makes decisions in consultation with her subordinates. Which leadership style is reflected in her?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Participative
Option (1) Autocratic — Incorrect. An autocratic leader takes decisions alone and expects orders to be followed. Amrita consults her subordinates.
Option (2) Participative — Correct. A democratic (participative) leader develops plans and makes decisions in consultation with subordinates and encourages them to take part in decision making. Amrita does exactly this.
Option (3) Free-rein — Incorrect. A free-rein leader gives followers a high degree of independence and does not use power. Amrita takes part in the decisions.
Option (4) Informal — Incorrect. There are three leadership styles: autocratic, democratic (participative) and free-rein. Informal is not one of them.
Note: The case study is taken from the chapter ‘Principles of Management’, but this question is based on the chapter ‘Directing’. However, since it is a case-study based question, all the questions on this case study are tagged to the chapter the case study is taken from. NCERT (2026-27 Edition): “(ii) Democratic or Participative … A democratic leader will develop action plans and makes decisions in consultation with his subordinates. He will encourage them to participate in decision-making. …” |