Explain one leadership style that may be effective in managing innovation at ABC.

• A. Autocratic leadership
• B. Laissez-faire leadership
• C. Democratic leadership
• D. Transformational leadership

Answer: (C)

Fostering innovation works best when you actively involve people in shaping new ideas. Democratic leadership does this by inviting input from team members, valuing their suggestions, and reaching decisions through collaboration. That inclusive approach builds psychological safety, so people feel comfortable sharing unconventional ideas and taking calculated risks. It also taps into diverse knowledge across the organization, improving problem-solving and allowing ideas to be tested and refined through feedback from multiple angles. When people helped design the plan, they’re more committed to implementing it and persisting through obstacles, which speeds up the cycle from idea to action. In a company like ABC, where innovation often requires coordination across functions, this style supports iterative testing, learning, and adaptive change. While autocratic leadership may stifle creativity, laissez-faire can lead to a lack of direction, and transformational leadership emphasizes vision but may need more practical input; democratic leadership effectively balances participation with guided progress, making it well suited to managing innovation.