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 Together, they developed action plans to address the company’s challenges regarding outdated designs and inefficient production processes etc.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:

Updated On: Feb 19, 2025
  • Autocratic leadership style
  • Democratic leadership style
  • Free-rein leadership style
  • Both (A) and (B)
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The Correct Option is B

Solution and Explanation

Step 1: Understanding Leadership Styles:
Autocratic leadership is characterized by individual control over all decisions with little input from team members. In contrast, democratic leadership involves collaboration and encourages employee participation in decision-making. Step 2: Applying to the given case:
Ravi Kumar encouraged employees to actively participate in decision-making, promoting enthusiasm and motivation. This aligns with democratic leadership, where employees are given a voice in business decisions, fostering a sense of ownership and commitment. Therefore, the correct answer is option B.
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