Evaluate which leadership style would be most appropriate for ABC as it expands the new business.

• A. Democratic in all areas
• B. A mixed style is likely best: democratic in R&D to encourage innovation and more directive in factory operations to maintain safety and consistency
• C. Autocratic in all areas
• D. Laissez-faire in all areas

Answer: (B)

Leadership effectiveness hinges on matching how you lead to what each part of the business needs. As ABC expands, different areas require different approaches. In research and development, democratic leadership invites input, collaboration, and experimentation, which fuels creativity and helps generate promising new ideas. In factory operations, a more directive style provides clear instructions, strong supervision, and tight controls to safeguard safety, quality, and consistency as production scales.

So a mixed approach—democratic in R&D to encourage innovation and more directive in production to ensure safety and reliability—lets ABC reap the benefits of creativity where it’s most valuable while maintaining control where it’s critical. Relying on one style across all areas could hamper innovation or undermine safety and efficiency during growth. This flexible, task-aligned leadership supports successful expansion.