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Home/Practice questions/Business Studies
Business StudiesDirecting

Consider the following facts regarding the styles of leadership. A. A…

Consider the following facts regarding the styles of leadership.

A. An autocratic leader exercises more control by using forces within the group.
B. A democratic leader will develop action plans and makes decisions in consultation with others.
C. The group members work on their own tasks resolving issues themselves in free-rein leadership.
D. A democratic leader does not believe in the use of power unless it is absolutely essential.
E. Authoritarian leadership style facilitates quick decision making.

Choose the correct answer from the options given below.

Answer & explanation+

Correct answer: option 3

The correct answer is Option (3) → B, C and E Only

There are three styles of leadership: autocratic (authoritarian), democratic (participative) and free-rein (laissez faire).

A. An autocratic leader exercises more control by using forces within the group. — False. This is said about the democratic leader. An autocratic leader gives orders and expects the subordinates to obey them.

B. A democratic leader will develop action plans and makes decisions in consultation with others. — True. A democratic leader consults the subordinates and lets them take part in decisions.

C. The group members work on their own tasks resolving issues themselves in free-rein leadership. — True. Under a free-rein leader, the members get a high degree of freedom and solve their own problems.

D. A democratic leader does not believe in the use of power unless it is absolutely essential. — False. This is said about the free-rein leader.

E. Authoritarian leadership style facilitates quick decision making. — True. The autocratic leader decides alone, so decisions are made quickly.

NCERT (2026-27 Edition): “Leadership Style … (i) Autocratic or Authoritarian leader An autocratic leader gives orders and expects his subordinates to obey those orders. …”

“This leader is dogmatic, i.e., does not change or wish to be contradicted. His following is based on the assumption that reward or punishment both can be given depending upon the result. This leadership style is effective in getting productivity in many situations like in a factory where the supervisor is responsible for production on time and has to ensure labour productivity. Quick decision-making is also facilitated.”

“(ii) Democratic or Participative leader A democratic leader will develop action plans and makes decisions in consultation with his subordinates. He will encourage them to participate in decision-making. This kind of leadership style is more common now-a-days, since leaders also recognise that people perform best if they have set their own objectives. They also need to respect the other’s opinion and support subordinates to perform their duties and accomplish organisational objectives. They exercise more control by using forces within the group.”

“(iii) Laissez faire or Free-rein leader Such a leader does not believe in the use of power unless it is absolutely essential. The followers are given a high degree of independence to formulate their own objectives and ways to achieve them. The group members work on their own tasks resolving issues themselves. …”

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