Answer to Question 1
The three leadership styles are authoritarian, democratic, and laissez-faire. A democratic leadership style tries to lead by building a consensus among group members. An authoritarian leadership style leads by giving orders to group members. A laissez-faire leadership style emphasizes a permissive approach, which allows group members to choose their own options with minimum input from the actual leader. A laissez-faire leader is actually relinquishing power to his or her subordinates.
No single leadership style can be considered best. All other factors remaining equal, the best style is dependent upon the situation and the immediate and long-term objectives of the group. In a life-threatening or emergency situation, an authoritative style would be most effective. If new products are being developed, a more democratic or laissez-faire style will foster greater insight and creativity. Democratic and laissez-faire styles also encourage the development of staff.
Answer to Question 2
There are an exhaustive number of examples that can be used to answer this question. A good answer would include a discussion of size, stability, diffusion of responsibility, and what leadership styles are employed. It might also address the effectiveness of this leadership style.
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