Leadership and management practice questions.

Which statement best distinguishes leadership from management?

• Management sets the long-term vision, while leadership organises daily operations
• Leadership inspires and sets direction; management plans, organises and controls
• Leadership only exists in for-profit firms, whereas management exists in all organisations
• Management requires charisma, while leadership requires technical qualifications

Answer: Leadership inspires and sets direction; management plans, organises and controls

Leaders influence and set direction to achieve a vision; managers plan, organise, coordinate and control resources to meet objectives. The two roles overlap but are conceptually distinct.

A manager discusses a decision with her team and bases her final choice on their views and suggestions. Which leadership style is this?

• Autocratic
• Laissez-faire
• Democratic
• Paternalistic

Answer: Democratic

A democratic leader involves subordinates in decision-making and takes their views into account. A paternalistic leader may consult but decides what they think is best for staff, and a laissez-faire leader hands the decision over to staff entirely.

Which situation is most likely to make an autocratic leadership style appropriate?

• Managing highly skilled research scientists on a creative project
• A crisis requiring fast, decisive action with unskilled or new staff
• A flat organisation that values employee empowerment
• A team of experienced professionals who prefer autonomy

Answer: A crisis requiring fast, decisive action with unskilled or new staff

Autocratic leadership suits situations needing quick decisions, tight control or where staff are inexperienced. Skilled, creative or autonomous teams usually respond better to democratic or laissez-faire styles.

A paternalistic leader is best described as one who:

• Gives employees complete freedom with no guidance
• Acts like a father figure, deciding what is best for staff
• Bases all decisions on majority votes from employees
• Refuses to communicate with subordinates

Answer: Acts like a father figure, deciding what is best for staff

A paternalistic leader makes decisions for employees, treating them like family members whose welfare he considers, but still retains control of the final decision.

Which of the following is a likely drawback of a laissez-faire leadership style?

• Decisions are made too slowly because everyone must be consulted
• Staff may lack direction and coordination, reducing productivity
• Staff feel over-controlled and demotivated
• It prevents skilled employees from using their creativity

Answer: Staff may lack direction and coordination, reducing productivity

Laissez-faire leaves employees to work with minimal supervision; without clear direction this can cause a lack of coordination and falling productivity, especially among staff who need guidance.

Which factor is most relevant to a 'situational' view of leadership?

• A leader should always use the same style for consistency
• The best style depends on the task, workforce and context
• Leaders are born, not made
• Democratic leadership is always superior to autocratic leadership

Answer: The best style depends on the task, workforce and context

Situational (contingency) leadership argues there is no single best style; the effective approach depends on variables such as task urgency, staff skill and the wider context.