Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which style of leadership is characterized by informing subordinates of problems and seeking their input?

1. Autocratic leadership

2. Laissez-faire leadership

3. Transformational leadership

4. Democratic leadership

The correct answer is: Democratic leadership

The style of leadership characterized by informing subordinates of problems and seeking their input is democratic leadership. This approach encourages collaboration and values the contributions of team members, allowing them to participate in decision-making processes. Leaders who adopt this style recognize that involving others can lead to better outcomes, as they are able to leverage diverse perspectives and ideas. Democratic leaders typically communicate openly with their teams about challenges and solicit their opinions, fostering a sense of ownership and accountability among team members. This engagement not only enhances the morale of subordinates but also improves the quality of decisions made, as multiple viewpoints are considered before reaching a conclusion. In contrast, other leadership styles may not involve subordinates in the same way. For instance, autocratic leadership centralizes decision-making with the leader, limiting input from team members. Laissez-faire leadership grants substantial freedom to subordinates, often to the extent that they may not receive guidance on problems. Transformational leadership may inspire and motivate teams toward a vision, but it doesn’t necessarily focus on collaborative problem-solving to the extent that democratic leadership does. Thus, the essence of recognizing team input in problem-solving distinctly defines democratic leadership.