Bgn sells furniture such as beds and tables. It started as a partnership but is now a private limited company. BG has expanded quickly and has 10 shops located in different cities. Each shop manager is responsible for recruitment and decisions about inventory levels. They send the board a monthly report. The managing director has a laissez fair leadership style. There has been an increase in customer complaints and employees think internal communications need to be improved. Identify and explain one advantage and one disadvantage of the managing director's leadership style?

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Explanation:

The Laissez-faire leadership style allows group members or employees to make important decisions. Managers operate hands-off, meaning they allow employees to run the business. The Laissez-faire leadership style is delegates responsibilities to employees.

Advantages

1. It promotes employees' personal growth.

When leaders are hands-off, employees get the chance to be hands-on. The Laissez-faire leadership style creates an environment that facilitates employee growth and development.

2. It encourages innovation. Employees have the freedom to try out different ways of achieving objectives. This promotes creativity and innovation in the workplace.

Disadvantages

1.Subject to abuse by employees

Because there is little supervision by managers, some workers may take advantage of their benefit. They might engage in fraud-related activities to steal money from the business.  Absenteeism without genuine reason is likely to be high.

2. Reduces cohesion in teams

Due to a lack of clear leadership, each group member act as per their judgment. Teamwork is destroyed, which results in low productivity.

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