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This leadership style has been associated with lower productivity than both autocratic and democratic styles of leadership and with lower group member satisfaction than democratic leadership. [9] Some researchers have suggested that laissez-faire leadership can actually be considered non-leadership or leadership avoidance. [18]
The advantages of the Laissez faire are increased innovation and creativity through the autonomy of expert staff. Some examples of this type of employee are teachers, creatives, and designers. [4] Disadvantages include the risk of low productivity by unsupervised staff, loss of direction due to the hands-off style of management. [1]
Laissez-faire (/ ˌ l ɛ s eɪ ˈ f ɛər / LESS-ay-FAIR; or / l ɑː ˌ s ɛ z ˈ f ɛ. j ə r /, from French: laissez faire [lɛse fɛːʁ] ⓘ, lit. ' let do ' ) is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations ).
In laissez-faire or free-rein leadership, decision-making is passed on to the subordinates. (The phrase laissez-faire is French and literally means "let them do"). Subordinates are given the right and power to make decisions to establish goals and work out the problems or hurdles, and are given a high degree of independence and freedom to ...
This leadership style can be seen as the absence of leadership, and is characterized by an attitude avoiding any responsibility. Decision-making is left to the employees themselves, and no rules are fixed. Laissez-faire is the least effective leadership style, when measured by the impact of the leader's opinion on the team.
Although laissez-faire has been commonly associated with capitalism, there is a similar left-wing laissez-faire system called free-market anarchism, also known as free-market anti-capitalism and free-market socialism to distinguish it from laissez-faire capitalism.
Laissez-faire leadership should not be confused with delegation of responsibilities, which is often associated with positive leadership; the main distinction of the laissez-faire style is an abdication of responsibility for the outcome when decisions are made by subordinates in the absence of managerial oversight.
Laissez-faire leadership indicates a lack of leadership and a complete hands-off approach with employees. [ 13 ] With transactional leadership being applied to the lower-level needs and being more managerial in style, it is a foundation for transformational leadership which applies to higher-level needs.