Read the following passage and answer the question.

Babli was recently promoted to the position of production manager, and Mr. Lali, the general manager, had full confidence in her ability to manage the department effectively. She acted as a bridge between the management and workers, resolving misunderstandings and conflicts while introducing several reforms. Babli implemented flexible working hours for the employees and introduced a performance-based wage system, offering higher wages to those who met their targets and lower wages to those who didn’t. In her effort to improve the work environment, she revamped the workplace by designing jobs with more variety. Additionally, she established various committees and actively sought employee suggestions to enhance the company's operations. Believing in transparency, she also set up a suggestion box to address employee concerns. As a result of her efforts, the company’s growth rate doubled within just a few months.

Identify the kind of leadership style which Babli followed.

Democratic

The correct answer is option 2- Democratic.

Babli followed a Democratic leadership style. This is evident from her efforts to involve employees in decision-making by setting up committees, seeking suggestions, and addressing employee concerns through the suggestion box. Her approach encourages collaboration, transparency, and employee participation, which are key characteristics of democratic leadership. So, the correct answer is Democratic.