In which leadership style is authority decentralized, allowing for joint decision-making between managers and employees?

Prepare for the VCE Business Management Exam. Use flashcards and multiple choice questions, with hints and explanations for each question. Get ready for your success!

The participative leadership style is characterized by the decentralization of authority, which fosters collaboration and shared decision-making between managers and employees. In this approach, leaders actively involve their team members in the decision-making process, recognizing the value of diverse perspectives and collective input. This can lead to increased job satisfaction and engagement among employees, as they feel like their opinions are valued and that they play an integral role in the organization.

Participative leadership promotes an environment of trust and open communication, allowing teams to work more effectively together towards common goals. This style contrasts with more hierarchical approaches, where decisions are made solely by upper management without input from staff, potentially leading to lower morale and a sense of disconnection among employees.

On the other hand, the consultative style involves the leader seeking input from employees before making a decision but ultimately retaining the final say. This can lead to a level of participation but does not fully embrace joint decision-making as seen in participative leadership.

Laissez-faire leadership allows employees a high degree of independence with minimal direction from the leader, which may lead to a lack of guidance in decision-making rather than active collaboration. Finally, transactional leadership focuses on a system of rewards and penalties based on performance, prioritizing supervision and performance management over collaborative

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