Laissez Faire Leadership Definition, Advantages, Disadvantages & Overview

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Definition: Laissez Faire Leadership

Laissez Faire Leadership is the system by which power is given in the hands of the employees & trade unions by which they can freely negotiate among one another, thereby leading to arrival at a decision completely on their own. Laissez Faire Leadership style of leadership is also called delegative style, where the power is passed on to the people in the process.

Characteristics of Laissez Faire Leadership

The approach of Laissez Faire leadership has the following characteristics:

1. Laissez Faire leadership empowers the employees and not the leader.

2. Subordinates are the decision makers for the work to be done.

3. There is limited accountability of the leader.

4. In Laissez Faire leadership, a leader is simply supposed to provide the resources.

5. The work is to be based on the skills and decision making of the subordinates.

6. Laissez Faire leadership demands no interference from the leader or manager.

Advantages of Laissez Faire Leadership

There are certain pros of Laissez Faire Leadership which are as mentioned below:

1. Hardly or no interference from the government, therefore allowing for easier negotiations

2. It takes into account that the parties are on an equal footing with respect to the bargaining power.

3. The system & elements provided for the decision making & negotiation are provided by the government.

Disadvantages of Laissez Faire Leadership

Certain disadvantages of Laissez Faire Leadership are mentioned below:

1. Matters where regulation is needed cannot be handled properly.

2. Often if there is a dispute between the parties relating to negotiation related constraints, it becomes difficult to solve

3. The management may be portrayed as a laid back, not enough proactive

4. The system of collective laissez faire differs from industry to industry, thus it may not be applicable in an industry where regulations are key.

Laissez Faire Leadership is lesser effective as compared to transformational leadership or transactional leadership, as too much power it given to subordinates. Thus it is imperative that the industry mapping is done before allowing laissez faire, and we also need to understand the implications of it.

Hence, this concludes the definition of Laissez Faire Leadership along with its overview.

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