Which leadership style involves including managers and employees in the decision-making process?

Master the Bookout 6600 Business Concepts Test. Practice with engaging flashcards and multiple-choice questions. Understand each concept thoroughly to excel in your exam!

Participative (democratic) leadership is characterized by actively involving managers and employees in the decision-making process. This style emphasizes collaboration and values the input from team members, fostering a sense of ownership and commitment to the outcomes. In a participative approach, leaders seek consensus and encourage open dialogue, which enhances creativity and problem-solving by leveraging diverse perspectives.

Leaders who adopt this style create an inclusive atmosphere where team members feel valued, which can lead to higher motivation and job satisfaction. The commitment to involving others not only aids in developing the team's skills and competencies but also strengthens relationships and improves communication within the organization.

This approach contrasts with leadership styles such as autocratic leadership, where decisions are made unilaterally by the leader without input from others, and free-rein leadership, which entails giving complete freedom to team members to make decisions without much guidance. Transactional leadership tends to focus on structured tasks and rewards for performance, rather than on involving team members in the decision-making process.

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