Question

For taking the company out of losses, Ravi Kumar took over as the Managing Director of the struggling 'Vova Watch Company' in January 2020. As soon as he joined, he tried to find out the reason for the company not doing well. He found that the employees were not involved in decision-making and they had to just follow orders, resulting in low morale of employees.

Recognising the need for change, Ravi Kumar started on a journey to bring back the enthusiasm and motivation of the employees. He initiated open dialogues and encouraged them to actively participate in decision-making. Together, they developed action plans to address the company's challenges regarding outdated designs and inefficient production processes, etc.

As time passed, 'Vova Watch Company' transformed from a struggling enterprise to a profit making enterprise. Identify the leadership style of Ravi Kumar. 

Options

• Autocratic leadership style

• Democratic leadership style

• Free-rein leadership style

• Both Autocratic leadership style and Democratic leadership style

Answer 1

Democratic leadership style

Explanation:

Ravi Kumar promoted candid communication and included staff members in decision-making, all of which are traits of a democratic leadership style. This leadership style, which emphasizes participation and teamwork, helped boost employee morale and bring the business around.