Previous Year Questions (PYQs)

on
Leadership- Part 1

Introductory Note

This document contains following 3 sections –

Section A – Under this section, you will find the exact previous year questions which were asked in RBI,
SEBI and PFRDA. This section will enable you to test your knowledge based on different concepts and
for your comfort, we have segregated the questions according to the different examinations. The
questions have been arranged in the following manner

1. RBI Grade B - Here, you will find all the previous year questions, which were asked in the
phase 2 of RBI Grade B exam, starting from 2016 onwards
2. SEBI Grade A - Here, you will find all the previous year questions, which were asked in the
Phase 1 and Phase 2 of SEBI Grade A exam, starting from 2018 onwards
3. PFRDA Grade A – Here, you will find all the previous year questions, which were asked in
phase 1 and Phase 2 of PFRDA Grade A exam, starting from 2021 onwards

If there is no question in this document on any exam for a particular year or years, it means no
question was asked for that exam in that year(s) or exam itself was not conducted in that year.

Section B - In this section, you will find the answer key for all the questions, and it will enable you to
check your marks and understand your performance accordingly.

Section C – This section contains a detailed explanation to every question, and herein you will be able
to understand the concept in the best holistic manner as possible.

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 Section A
Questions asked in Phase 2 of the RBI Grade B exam, from 2016 onwards

Question 1 – There are various kinds of leadership which a leader can follow, in the same regard, identify the
characteristic of the Participative Leadership, from the following given options RBI Grade B – Phase 2 - 2017

A. Ensuring complete delegation of tasks

B. Ensuring Due Importance is given to rewards
C. Ensuring participation of customers in the company affairs.
D. Ensuring Social Equality in the Team
E. None of the above.

Question 2 – From the following options, identify the theory of leadership, wherein a manager shares his
decision-making power with his colleagues and asks for their opinion? RBI Grade B – Phase 2 - 2017

A. Shared Leadership
B. Participative Leadership
C. Autocratic Leadership
D. Paternalistic Leadership
E. Servant Leadership

Question 3 – In which of the following Leadership style, a leader gives reward when employees perform well
and even has the power to punish them in case they do not comply to the given orders ? RBI Grade B – Phase
2 - 2017

A. Transformational Leadership
B. Participative Leadership
C. Democratic Leadership
D. Transactional Leadership
E. None of the above

Question 4 – In which leadership style a leader has a vision for the future, Inspire his subordinates and brings
the change in the organization? RBI Grade B – Phase 2 - 2017

A. Shared Leadership
B. Transformational Leadership
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C. Participative Leadership
D. Democratic Leadership
E. Transactional Leadership

Question 5 – In the field of leadership, managerial Leadership is also known as __________? RBI Grade B –
Phase 2 - 2017

A. Democratic Leadership
B. Strategic Leadership
C. Participative Leadership
D. Transformational Leadership
E. Transactional Leadership

Question 6 – Under the concept of Managerial Grid, which type of leader has a concern for Production and he
also has a concern for people? RBI Grade B – Phase 2 - 2018

A. Country Club leader

B. Team Manager leader
C. Indifferent leader
D. Impoverished leader
E. None of the above

Question 7 – Identify the Leadership theory wherein a leader has a complete trust in his Subordinates and seeks
frequent suggestions from them and use them constructively? RBI Grade B – Phase 2 – 2018

A. Transactional leader
B. Autocratic leader
C. Delegative leader
D. Participative leader
E. None of the above

Question 8 – Identify the Leadership style where a leader is sensitive about his followers' feelings but in the
end, what prevails is the leader's wish. RBI Grade B – Phase 2 – 2018

A. Maternalistic Style
B. Paternalistic Style
C. Servant Style
D. Participative

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E. None of the above

Question 9 – According to Burns’s theory of leadership, in such type of leadership a Leader and a Follower helps
each other to move to higher level of motivation and morale, such type of leadership is known as
_______________? RBI Grade B – Phase 2 – 2018

A. Transactional Theory
B. Transformational Theory
C. Burn’s Motivational Theory
D. Leader-Follower Theory
E. None of the above

Question 10 – In the field of management, Managerial Grid is given by ________________? RBI Grade B – Phase
2 – 2018

A. Fred Fiedler
B. Blake and Mouton
C. Max Weber
D. Robert House
E. None of the above

Question 11 – From the following given options, Identify the Leadership theory, which explains that leaders
are born and not made. RBI Grade B – Phase 2 – 2018

A. Self-Made Theory of Leadership

B. Great Man Theory of Leadership
C. Genes Theory of Leadership
D. Silver Spoon Theory of Leadership
E. None of the above

Question 12 – Identify the leadership style in which rewards are given for contingent Performance of an
employee RBI Grade B – Phase 2 – 2019

A. Transformational leadership style

B. Managerial Grid leadership style
C. Transactional leadership style
D. Bureaucratic leadership style
E. None of the above

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Read the following Paragraph and answer the following questions.

A random and well-structured Paragraph was given regarding the “3D Reddin Model of leadership”. Answer the
following questions which are based on “3D Reddin Model of leadership.”

Question 13 – Identify the leadership style, wherein a Leader enjoys involving team members & creating social
bond & allows more freedom. RBI Grade B – Phase 2 – 2019

A. Integrated leadership style

B. Separated leadership style
C. Related leadership style
D. Dedicated leadership style
E. None of the above

Read the following Paragraph and answer the following questions

A random and well-structured Paragraph was given regarding the “3D Reddin Model of leadership”. Answer the
following questions which are based on “3D Reddin Model of leadership”

Question 14 – Identify the leadership style, wherein a manager retains the cooperative nature of the group and
encourages 2-way communication. RBI Grade B – Phase 2 – 2019

A. Integrated leadership style

B. Separated leadership style
C. Related leadership style
D. Dedicated leadership style
E. None of the above

Question 15 - The managerial grid theory on which the Reddin model is based, was given by which of the
following personalities? RBI Grade B – Phase 2 – 2019

A. Tannenbaum and Schmidt

B. Blake and Mouton
C. Huneryager and Heckman
D. Hersey & Blanchard
E. None of the above

Read the following paragraph and answer the question that follows

Leadership is the process of guiding and influencing individuals or a group to achieve shared goals. Effective
leaders inspire and motivate others, foster collaboration, and make strategic decisions. Leadership involves
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traits like communication, empathy, vision, and adaptability, empowering people to realize their potential and
achieve collective success.

Kurt Lewin, a psychologist, made significant contributions to the study of leadership through his research on
group dynamics and social psychology.

Question 16 – Which of the following are the three leadership styles introduced by Kurt Lewin in 1930? RBI
Grade B – Phase 2 – 2023

A. Autocratic, Democratic, and Equity

B. Autocratic, Democratic, and Laissez-faire.
C. Autocratic, Delegative, and Equity
D. Power, Democratic, and Equity
E. Autocratic, Democratic, and Supportive

Questions asked in Phase 1 and Phase 2 of the SEBI Grade A exam, starting from 2018
onwards.

Question 1 – Identify the leadership style of a leader, who is caring towards his employees but in the end,
leader’s will, or order shall prevail in the end? SEBI Grade A – Phase 2 – 2018

A. Constructive leader
B. Paternalistic leader
C. Mother Figure Leader
D. Transactional Leader
E. None of the above

Question 2 – Identify a leadership style wherein a leader inspires a shared vision. SEBI Grade A – Phase 2 – 2018

A. Transactional leadership style

B. Transformational leadership style
C. Caring leadership style
D. Inspiring leadership style
E. None of the above

Question 3 - As per this theory of Leadership, Leaders are not made by training, but they are born. SEBI Grade
A – Phase 2 – 2018
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A. Tolstoy Theory
B. Birth and Death Theory
C. Trait Theory
D. Inheritance Theory
E. None of the above

Question 4 - In the Managerial Grid of leadership, which type of Leader is there at coordinates X-9 and Y-9? SEBI
Grade A – Phase 2 – 2018

A. Indifferent leader
B. Country Club leader
C. Team manager leader
D. Impoverished leader
E. None of the above

Question 5 - In trait approach theory of leadership, intelligence, emotion, knowledge forms which type traits of
the leader? SEBI Grade A – Phase 2 – 2020

A. Intellectual traits
B. Personality traits
C. Communication traits
D. Conscientious traits
E. None of the above

Question 6 – From the following options, identify the qualities of an effective leader? SEBI Grade A – Phase 2
– 2020

A. Task Oriented
B. Task Oriented and Concern for the Team, makes employee feel important part of an organization
C. Relationship Oriented but not task oriented
D. Self-centered
E. None of the above

Question 7 - Transactional Leadership is a style of leadership in which leaders promote compliance by follower
through both rewards and punishment. Transactional leadership is also known as _______? SEBI Grade A –
Phase 1 – 2022

A. Management Leadership
B. Participative Leadership
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C. Autocratic Leadership
D. Transformational leadership
E. Situational Leadership

Question 8 - Which of the following is a leadership theory wherein a leader is seen as genuine, open, transparent
and they really care for the employees by nurturing the relationship between them. SEBI Grade A – Phase 1 –
2022

A. LMX theory of leadership

B. Servant theory of leadership
C. Autocratic theory of leadership
D. Participative theory of leadership
E. Authentic theory of leadership

Question 9 - Identify the leadership style wherein a leader has inspirational and Charismatic Approach towards
the employees of the Organisation? SEBI Grade A – Phase 2 – 2022

A. Transactional leadership
B. Transformational leadership
C. Authoritarian Leadership
D. Delegative Leadership
E. None of the above

Questions asked in Phase 1 and Phase 2 of the PFRDA Grade A exam, starting from 2021
onwards

Question 1 - __________ is one who makes subordinates feel that they are participating in decision making
process even though he has already taken the decision. PFRDA Grade A – Phase 1 – 2021

A. Manipulative Autocratic Leader

B. Democratic Leader
C. Paternalistic Leader
D. Free-rein Leader
E. None of the above

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Question 2 - _____________ is a managerial approach that involves a dominant authority figure who acts as a
patriarch or matriarch and treats employees and partners as though they are members of a large, extended
family. PFRDA Grade A – Phase 2 – 2021.

A. Paternalistic Leadership
B. Democratic Leadership
C. Laissez Faire Leadership
D. Both B and C
E. None of the above

Question 3 – From the following given options identify the leadership style wherein a leader creates harmony
in the workplace and make employees happy. The leader attempts to build strong relationships with employees
in hopes of building loyalty. PFRDA Grade A – Phase 1 – 2022.

A. Democratic Leadership
B. Paternalistic leadership
C. Affiliative leadership
D. Autocratic leadership
E. None of the above

Question 4 – As per the managerial grid, identify the leadership style wherein managers tries to bring the best
of both worlds, he tries to maintain good relations with the employees and he also makes sures that task is
performed as per best industry standards. PFRDA Grade A – Phase 1 – 2022.

A. Produce or Perish Style

B. Evade and Elude
C. Task management
D. Team management
E. Compromising

Question 5 - From the following given options identify the leadership style wherein a leader focuses on
supervision, organization and performance and such leaders pay attention to followers' work in order to find
faults and deviations. PFRDA Grade A – Phase 1 – 2022.

A. Democratic Leadership
B. Free-rein leadership
C. Participative leadership
D. Transactional leadership

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E. None of the above

Question 6 - Leadership can be defined as the process to guide the employees towards the achievement of
organisational goal. In the same regard, which of the following leadership style if followed under Laissez Faire
leadership? PFRDA Grade A – Phase 2 – 2022.

A. Autocratic Leadership style

B. Democratic Leadership Style
C. Delegative Leadership Style
D. Paternalistic Leadership Style
E. None of the above

Question 7 - Leadership is the art of motivating a group of people to act toward achieving a common goal. There
are different leadership styles, in the same regard, identify the leadership style wherein a leader consults and
invite the suggestions from the fellow team members. PFRDA Grade A – Phase 2 – 2022.

A. Democratic Leadership Style

B. Servant Leadership Style
C. Narcissism Leadership Style
D. Autocratic Leadership
E. None of the above

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 Section B
Answer Key

RBI Grade B questions

Question Number Answer

Question 1 Option D
Question 2 Option B
Question 3 Option D
Question 4 Option B
Question 5 Option E
Question 6 Option B
Question 7 Option D
Question 8 Option B
Question 9 Option B
Question 10 Option B
Question 11 Option B
Question 12 Option C
Question 13 Option C
Question 14 Option A
Question 15 Option B
Question 16 Option B

SEBI Grade A questions

Question Number Answer

Question 1 Option B
Question 2 Option B
Question 3 Option C
Question 4 Option C
Question 5 Option A

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 Question 6 Option B
Question 7 Option A
Question 8 Option E
Question 9 Option B

PFRDA Grade A questions

Question Number Answer

Question 1 Option A
Question 2 Option A
Question 3 Option C
Question 4 Option D
Question 5 Option D
Question 6 Option C
Question 7 Option A

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 Section C
Explanation
RBI Grade B questions
Question 1 – There are various kinds of leadership that a leader can follow, in the same regard, identify the
characteristic of the Participative Leadership, from the following given options RBI Grade B – Phase 2 - 2017

A. Ensuring complete delegation of tasks

B. Ensuring Due Importance is given to rewards
C. Ensuring participation of customers in the company affairs.
D. Ensuring Social Equality in the Team
E. None of the above.

Answer – Option D

Explanation -
This is a very concept-based question, but the first thing which should come to your mind is that, the
Participative Leadership style is also known as Democratic Leadership Style.

Under such leadership styles, a leader encourages staff to be a part of the decision-making process and he keeps
staff informed about everything that affects their work and shares decision making and problem-solving
responsibilities. Moreover, Employees like the trust they receive and respond with cooperation, team spirit, and
high morale.

Please note that, under such leadership style, the idea is to give “equal treatment” to everyone with Social
Equality.

Additional features

• Delegation of authority up to a limit to subordinates to implement decisions

• The Goals of staff are set by themselves
• Achievement is recognized and encouragement is given
• There is decentralized authority

Question 2 – From the following options, identify the theory of leadership, wherein a manager shares his
decision-making power with his colleagues and asks for their opinion. RBI Grade B – Phase 2 - 2017

A. Shared Leadership
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B. Participative Leadership
C. Autocratic Leadership
D. Paternalistic Leadership
E. Servant Leadership

Answer – Option B

Explanation -
In this question, focus on the key words, which are manager shares his decision-making power with his
colleagues and asks for their opinion, therefore, the answer cannot be autocratic leadership, while the key
words regarding the paternalistic, shared and servant leadership are missing in the question, therefore now you
are left with only one option, which is participative leadership.

Under democratic or participative leadership styles, a leader encourages staff to be a part of the decision
making process and he keeps staff informed about everything that affects their work and shares decision
making and problem-solving responsibilities. Moreover, Employees like the trust they receive and respond
with cooperation, team spirit, and high morale.

Please note that, under such leadership style, the idea is to give “equal treatment” to everyone with Social
Equality.

Additional features

• Delegation of authority up to a limit to subordinates to implement decisions

• The Goals of staff are set by themselves
• Achievement is recognized and encouragement is given
• There is decentralized authority

Question 3 – In which of the following Leadership style, a leader gives reward when employees perform well
and even has the power to punish them in case they do not comply to the given orders ? RBI Grade B – Phase
2 - 2017

A. Transformational Leadership
B. Participative Leadership
C. Democratic Leadership
D. Transactional Leadership
E. None of the above

Answer – Option D

Explanation –
In this question, the concepts regarding transactional leader are tested, Transactional leadership, also known

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as managerial leadership, leaders following this leadership, focuses on supervision, organization and
performance. Those using the transactional approach are not looking to change the future, they look to keep
things the same. Leaders using transactional leadership as a model pay attention to followers' work in order
to find faults and deviations.

This type of leadership is effective in crisis and emergency situations as well as

for projects that need to be carried out in a specific way

Transactional leadership is a style of management based on the setting of clear

objectives for sub-ordinates and with ‘punishment or reward’ to promote or
encourage compliance e.g. carrot and stick approaches to management

Carrot and stick approach, is a motivational approach that involves offering a

“carrot” (a reward—for good behavior) and a “stick” (a negative consequence for
poor behavior).

Question 4 – In which leadership style a leader has a vision for the future, inspires his subordinates and brings
the change in the organization? RBI Grade B – Phase 2 - 2017

A. Shared Leadership
B. Transformational Leadership
C. Participative Leadership
D. Democratic Leadership
E. Transactional Leadership

Answer – Option B

Explanation
Here the keywords will be that “a leader has a vision for the future, and inspires his subordinates”, these
keywords matches to the features of transformational leadership.

A transformational leader is a type of person in which the leader is not limited by his or her followers'
perception. The main objective is to work to change or transform his or her followers' needs and redirect their
thinking. Leaders that follow the transformation style of leading, challenge and inspire their followers with a
sense of purpose and excitement. Transformational leaders also create a vision of what they aspire to be, and
communicate this idea to others (their followers)

Additional features

• In this leadership style, leader has a great vision for the future
• A transformational leader inspires, motivates, and encourages his subordinates

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 • The leaders communicate and explain their vision to everyone and answer their doubts. Nothing is
enforced on the employees
• Leaders following this leadership style are able to transform self, employees, and the organization.

Question 5 – In the field of leadership, managerial Leadership is also known as __________? RBI Grade B –
Phase 2 - 2017

A. Democratic Leadership
B. Strategic Leadership
C. Participative Leadership
D. Transformational Leadership
E. Transactional Leadership

Answer – Option E

Explanation -
Transactional leadership, also known as managerial leadership, leaders following this leadership, focuses on
supervision, organization and performance. Those using the transactional approach are not looking to change
the future, they look to keep things the same. Leaders using transactional leadership as a model pay attention
to followers' work in order to find faults and deviations.

This type of leadership is effective in crisis and emergency situations as well as for projects that need to be
carried out in a specific way

Transactional leadership is a style of management based on the setting of clear objectives for sub-ordinates
and with ‘punishment or reward’ to promote or encourage compliance e.g. carrot and stick approaches to
management

Question 6 – Under the concept of the Managerial Grid, which type of leader has a concern for Production and
he also has a concern for people? RBI Grade B – Phase 2 - 2018

A. Country Club leader

B. Team Manager leader
C. Indifferent leader
D. Impoverished leader
E. None of the above

Answer – Option B

Explanation

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Here the key words will be that a leader has a concern for production, and he also has a concern for people
who are working in the Organisation and if we follow the managerial grid, then only team leaders has the above
mentioned qualities.

The Blake-Mouton Managerial Grid is a system that can be used to group like leaders into categories based on
the methods that they use. This can be used to identify a manager's existing leadership style and provide a
training path to the ideal leadership style required.

The matrix analyses a manager’s style of leadership by the

consideration of two dimensions.

1. The managers concern for production (or the task)

such as work efficiency or volume of output.
2. The managers concern for people (or relationships)
such as satisfying personal relations and establishing
trust.

As per this style there are following five leadership styles

I. Impoverished Management or Indifferent or 1,1

Managerial Style —This is also termed as evade an elude. It is called 1,1 managerial style due to
coordinates of such a style on the managerial grid. In this case, the manager is failing both in terms of
the task and the people and is not a desirable position.

II. Country Club Management or Accommodating or 1,9 Managerial Style- This is also termed as yield and
comply. Manager has high concern to satisfy relationships, often at the expense of achieving the task.
Sub-ordinates are encouraged, supported and their needs are satisfied. Manager has high concern for
people and low concern for production. Manager is considered a big brother and social relationships are
given more importance.

III. Task Management or Authority Obedience Management Also Known as Produce or Perish Style or
Dictatorial Style or 9,1 Managerial Style: This is also termed as Control and dominate. Instead of paying
sole attention to the employees, this lead is only serving the needs of the project and the results they
are looking for. Human relationships and relationships are minimized.

IV. Team Management or also called Sound Style or 9,9 Managerial Style: This is also termed as contribute
and Commit This offers the best of both worlds. This manager is able to successfully juggle the needs of
the organization as a whole with the needs of the individual employees involved. The key is the
involvement and participation of those responsible in planning and execution of work

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 V. Status Quo or Middle of the Road Style or 5,5 Managerial Style: This is also termed as balance and
compromise. Managers using this style try to balance between company goals and workers' needs. By
giving some concern to both people and production, managers who use this style hope to achieve
suitable performance but doing so gives away a bit of each concern so that neither production nor people
need are met.

Question 7 – Identify the Leadership theory wherein a leader has complete trust in his Subordinates and seeks
frequent suggestions from them and uses them constructively? .BI Grade B – Phase 2 – 2018

A. Transactional leadership
B. Autocratic leadership
C. Delegative leadership
D. Participative leadership
E. None of the above

Answer – Option D

Explanation –
In this question, focus on the key words, which are a leader has a complete trust in his Subordinates and seeks
frequent suggestions from them, therefore, the answer cannot be autocratic and transactional leadership,
while delegative leadership, is all about giving complete freedom of decision making to the employees,
therefore now you are left with only one option, which is participative leadership.

Under democratic or participative leadership styles, a leader encourages staff to be a part of the decision
making process and he keeps staff informed about everything that affects their work and shares decision
making and problem-solving responsibilities. Moreover, Employees like the trust they receive and respond
with cooperation, team spirit, and high morale.

Please note that, under such leadership style, the idea is to give “equal treatment” to everyone with Social
Equality.

Additional features

• Delegation of authority up to a limit to subordinates to implement decisions

• The Goals of staff are set by themselves
• Achievement is recognized and encouragement is given
• There is decentralized authority
• Staff is consulted and their opinion is taken by the leader for making key decisions.

Question 8 – Identify the Leadership style where a leader is sensitive about his followers' feeling but, in the end,
what prevails is the leader's wish. RBI Grade B – Phase 2 – 2018
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A. Maternalistic Style
B. Paternalistic Style
C. Servant Style
D. Participative
E. None of the above

Answer – Option B

Explanation -
Paternalistic leadership is a managerial approach that involves a dominant authority figure who acts as a
patriarch or matriarch and treats employees and partners as though they are members of a large, extended
family.

leader works to help, guide, protect and keep his followers happily working together as members of family. He
provides them with good working conditions, fringe benefits and employee services

Under such leadership style, leader takes input from the employees but at the end, it’s the leader who decide
and take actions, which are best for the Organisation.

In exchange, the leader expects loyalty and trust from employees, as well as obedience. The relationship
between these co-workers and leader are extremely solid. The workers are expected to stay with a company for
a longer period because of the loyalty and trust. Not only do they treat each other like family inside the work
force, but outside too

Question 9 – According to Burns theory of leadership, in such type of leadership a Leader and a Follower helps
each other to move to higher level of motivation and morale, such type of leadership is known as
_______________? RBI Grade B – Phase 2 – 2018

A. Transactional leadership Theory

B. Transformational leadership Theory
C. Burn’s Motivational leadership Theory
D. Leader-Follower leadership Theory
E. None of the above

Answer – Option B

Explanation
The transformational Leadership Style was given by Burns and then extended by Bernard M. Bass

A transformational leader is a type of person in which the leader is not limited by his or her followers'
perception. The main objective is to work to change or transform his or her followers' needs and redirect their
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thinking. Leaders that follow the transformation style of leading, challenge and inspire their followers with a
sense of purpose and excitement. Transformational leaders also create a vision of what they aspire to be, and
communicate this idea to others (their followers)

Additional features

• In this leadership style, leader has a great vision for the future
• A transformational leader inspires, motivates, and encourages his subordinates
• The leaders communicate and explain their vision to everyone and answer their doubts. Nothing is
enforced on the employees
• Leaders following this leadership style are able to transform self, employees, and organization

Question 10 – In the field of management, Managerial Grid is given by ________________? RBI Grade B – Phase
2 – 2018

A. Fred Fiedler
B. Blake and Mouton
C. Max Weber
D. Robert House
E. None of the above

Answer – Option B

Explanation –
The Blake-Mouton Managerial Grid is a system that can be used to group like leaders into categories based on
the methods that they use. This can be used to identify a
manager's existing leadership style and provide a training
path to the ideal leadership style required.

The matrix analyses a manager’s style of leadership by the

consideration of two dimensions.

3. The managers concern for production (or the task)

such as work efficiency or volume of output.
4. The managers concern for people (or relationships)
such as satisfying personal relations and establishing
trust.

As per this style there are following five leadership styles.

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 I. Impoverished Management or Indifferent or 1,1 Managerial Style —This is also termed as evade an
elude. It is called 1,1 managerial style due to coordinates of such a style on the managerial grid. In this
case, the manager is failing both in terms of the task and the people and is not a desirable position.

II. Country Club Management or Accommodating or 1,9 Managerial Style- This is also termed as yield and
Comply. Manager has high concern to satisfy relationships, often at the expense of achieving the task.
Sub-ordinates are encouraged, supported and their needs are satisfied. Manager has high concern for
people and low concern for production. Manager is considered a big brother and social relationships
are given more importance.

III. Task Management or Authority Obedience Management Also Known as Produce or Perish Style or
Dictatorial Style or 9,1 Managerial Style: This is also termed as Control and dominate. Instead of paying
sole attention to the employees, this lead is only serving the needs of the project and the results they
are looking for. Human relationships and relationships are minimized.

IV. Team Management or also called Sound Style or 9,9 Managerial Style: This is also termed as contribute
and Commit This offers the best of both worlds. This manager is able to successfully juggle the needs
of the organization as a whole with the needs of the individual employees involved. The key is the
involvement and participation of those responsible in planning and execution of work

V. Status Quo or Middle of the Road Style or 5,5 Managerial Style: This is also termed as balance and
compromise. Managers using this style try to balance between company goals and workers' needs. By
giving some concern to both people and production, managers who use this style hope to achieve
suitable performance but doing so gives away a bit of each concern so that neither production nor
people’s need are met.

Question 11 – From the following given options, Identify the Leadership theory, which explains that leaders are
born and not made. RBI Grade B – Phase 2 – 2018

A. Self-Made Theory of Leadership

B. Great Man Theory of Leadership
C. Genes Theory of Leadership
D. Silver Spoon Theory of Leadership
E. None of the above

Answer – Option B

Explanation
“leaders are born and not made” is the ideology behind the “Great Man Theory of Leadership”
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This theory emphasizes that a person is born with or without necessary traits of leadership. For example, it
was believed that Napoleon was a born leader due to his natural ability to rise out of any situation. This theory
emphasizes ‘charismatic’ leadership. As per this theory, great leaders have inborn characteristics such as
commanding personality, charm, courage, intelligence etc. These qualities cannot be learned but are ingrained.

As per this theory

• Good leaders have in born qualities which are bestowed upon them by God.
• Ordinary people cannot become good leaders.
• Leadership qualities cannot be acquired through formal education.
• The situational factors have little influence on leaders’ qualities. A good leader will be a good leader in
all situations.

Question 12 – Identify the leadership style in which rewards are given for contingent Performance of an
employee RBI Grade B – Phase 2 – 2019

A. Transformational leadership style

B. Managerial Grid leadership style
C. Transactional leadership style
D. Bureaucratic leadership style
E. None of the above

Answer – Option C

Explanation –
In this question, the concepts regarding transactional leader are tested, Transactional leadership, also known
as managerial leadership, leaders following this leadership, focuses on supervision, organization and
performance. Those using the transactional approach are not looking to change the future, they look to keep
things the same. Leaders using transactional leadership as a model pay attention to followers' work in order
to find faults and deviations.

This type of leadership is effective in crisis and emergency situations as well as for projects that need to be
carried out in a specific way

Transactional leadership is a style of management based on the setting of clear objectives for sub-ordinates
and with ‘punishment or reward’ to promote or encourage compliance e.g. carrot and stick approaches to
management

Carrot and stick approach, is a motivational approach that involves offering a “carrot” (a reward—for good
behavior) and a “stick” (a negative consequence for poor behavior).

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A random and well-structured Paragraph was given regarding the “3D Reddin Model of leadership”.

Answer the following questions which are based on “3D Reddin Model of leadership”.

Question 13 – Identify the leadership style, wherein a Leader enjoys involving team members & creating social
bond & allows more freedom. RBI Grade B – Phase 2 – 2019

A. Integrated leadership style

B. Separated leadership style
C. Related leadership style
D. Dedicated leadership style
E. None of the above

Answer – Option C

Explanation
Tridimensional Leadership or 3D leadership theory was given by Reddin and please be informed that
Tridimensional Leadership is based on the Managerial grid theory by Blake and Mouton.

Reddin identified 4 leadership styles as given below

You can see these styles are differentiated based on degree of Task Orientation and Relationship Orientation.

I. The Separated Manager is the one who is low on task and low on relationship. He is engaged in
correcting deviations. He is the person who formulates the rules and policies and imposes these on
others but do not take a direct, commanding role on themselves.
II. The Related Manager is the who is low on task and high on relationship. He likes to work with others
and see an organization as a social system where everyone works together. He does not worry about the
time and accepts others as they are and do not try to change them. They do not focus on directing or
dictating orders to staff and allows much more freedom and responsibility. Hence the correct answer
will be option C.

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 III. The Dedicated Manager is the one who is task oriented and is only concerned with the production. He
does not like to mix up with the subordinates and cannot work without power and responsibility. They
retain power and responsibility with themselves, allowing them to dictate roles and requirements to
others.
IV. The Integrated Manager is the one who is high on task and high on relationship. He mixes up with the
subordinates and facilitate two-way communication. His major emphasis is on building a strong
teamwork and effective communication network.

A random and well-structured Paragraph was given regarding the “3D Reddin Model of leadership”.

Answer the following questions which are based on the “3D Reddin Model of leadership”

Question 14 – Identify the leadership style, wherein a manager retains the cooperative nature of the group
and encourages 2-way communication. RBI Grade B – Phase 2 – 2019

A. Integrated leadership style

B. Separated leadership style
C. Related leadership style
D. Dedicated leadership style
E. None of the above

Answer – Option A

Explanation –
Tridimensional Leadership or 3D leadership theory was given by Reddin and please be informed that
Tridimensional Leadership is based on the Managerial grid theory by Blake and Mouton.

Reddin identified 4 leadership styles as given below

You can see these styles are differentiated based on degree of Task Orientation and Relationship Orientation.

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 I. The Separated Manager is the one who is low on task and low on relationship. He is engaged in
correcting deviations. He is the person who formulates the rules and policies and imposes these on
others but do not take a direct, commanding role on themselves.
II. The Related Manager is the who is low on task and high on relationship. He likes to work with others
and see an organization as a social system where everyone works together. He does not worry about the
time and accepts others as they are and do not try to change them. They do not focus on directing or
dictating orders to staff and allows much more freedom and responsibility.
III. The Dedicated Manager is the one who is task oriented and is only concerned with the production. He
does not like to mix up with the subordinates and cannot work without power and responsibility. They
retain power and responsibility with themselves, allowing them to dictate roles and requirements to
others.
IV. The Integrated Manager is the one who is high on task and high on relationship. He mixes up with the
subordinates and facilitate two-way communication. His major emphasis is on building a strong
teamwork and effective communication network. Hence the correct answer will be option A.

Question 15 - The managerial grid theory on which the Reddin model is based, was given by which of the
following personalities? RBI Grade B – Phase 2 – 2019

A. Tannenbaum and Schmidt

B. Blake and Mouton
C. Huneryager and Heckman
D. Hersey & Blanchard
E. None of the above

Answer – Option B

Explanation -
Tridimensional Leadership or 3D leadership theory was given by Reddin and please be informed that
Tridimensional Leadership is based on the Managerial grid theory by Blake and Mouton. Hence the correct
answer will be option B

Reddin identified 4 leadership styles as given in the image

You can see these styles are differentiated based on the degree of
Task Orientation and Relationship Orientation.

I. The Separated Manager is the one who is low on task and low
on relationships. He is engaged in correcting deviations. He is
the person who formulates the rules and policies and imposes

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 these on others but do not take a direct, commanding role on themselves.
II. The Related Manager is the who is low on task and high on relationship. He likes to work with others
and see an organization as a social system where everyone works together. He does not worry about the
time and accepts others as they are and do not try to change them. They do not focus on directing or
dictating orders to staff and allows much more freedom and responsibility.
III. The Dedicated Manager is the one who is task oriented and is only concerned with the production. He
does not like to mix up with the subordinates and cannot work without power and responsibility. They
retain power and responsibility with themselves, allowing them to dictate roles and requirements to
others.

The Integrated Manager is the one who is high on task and high on relationship. He mixes up with the
subordinates and facilitate two-way communication. His major emphasis is on building a strong teamwork and
effective communication network

Read the following paragraph and answer the question that follows

Leadership is the process of guiding and influencing individuals or a group to achieve shared goals. Effective
leaders inspire and motivate others, foster collaboration, and make strategic decisions. Leadership involves
traits like communication, empathy, vision, and adaptability, empowering people to realize their potential and
achieve collective success.

Kurt Lewin, a psychologist, made significant contributions to the study of leadership through his research on
group dynamics and social psychology.

Question 16 – Which of the following are the three leadership styles introduced by the Kurt Lewin in 1930? RBI
Grade B – Phase 2 – 2023

A. Autocratic, Democratic, and Equity

B. Autocratic, Democratic, and Laissez-faire.
C. Autocratic, Delegative, and Equity
D. Power, Democratic, and Equity
E. Autocratic, Democratic, and Supportive

Answer – Option B

Explanation -

Kurt Lewin, a psychologist, made significant contributions to the study of leadership through his research on
group dynamics and social psychology. He is best known for his three leadership styles: autocratic, democratic,
and laissez-faire.

1. Autocratic Leadership: In this style, the leader holds complete control over decision-making and closely
supervises their team..

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2. Democratic Leadership: Lewin's democratic leadership style emphasizes collaboration and participatory
decision-making.
3. Laissez-Faire Leadership: The laissez-faire style involves minimal intervention by the leader, granting
employees a high degree of autonomy and freedom in decision-making.

Explanation
SEBI Grade A questions
Question 1 – Identify the leadership style of a leader, who is caring towards his employees but in the end,
leader’s will, or order shall prevail in the end? SEBI Grade A – Phase 2 – 2018

A. Constructive leader
B. Paternalistic leader
C. Mother Figure Leader
D. Transactional Leader
E. None of the above

Answer – Option B

Explanation –

Paternalistic leadership is a managerial approach that involves a dominant authority figure who acts as a
patriarch or matriarch and treats employees and partners as though they are members of a large, extended
family.

leader works to help, guide, protect and keep his followers happily working together as members of family. He
provides them with good working conditions, fringe benefits and employee services

Under such leadership style, leader takes input from the employees but at the end, it’s the leader who decide
and take actions, which are best for the Organisation.

In exchange, the leader expects loyalty and trust from employees, as well as obedience. The relationship
between these co-workers and leader are extremely solid. The workers are expected to stay with a company for
a longer period because of the loyalty and trust. Not only do they treat each other like family inside the work
force, but outside too.

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Question 2 – Identify a leadership style wherein a leader inspires a shared vision? SEBI Grade A – Phase 2 –
2018

A. Transactional leadership style

B. Transformational leadership style
C. Caring leadership style
D. Inspiring leadership style
E. None of the above

Answer – Option B

Explanation –
A transformational leader is a type of person in which the leader is not limited by his or her followers'
perception. The main objective is to work to change or transform his or her
followers' needs and redirect their thinking. Leaders that follow the transformation style of leading,
challenge and inspire their followers with a sense of purpose and excitement. Transformational leaders also
create a vision of what they aspire to be, and communicate this idea to others (their followers)

Additional features

• In this leadership style, leader has a great vision for the future
• A transformational leader inspires, motivates, and encourages his subordinates
• The leaders communicate and explain their vision to everyone and answer their doubts. Nothing is
enforced on the employees
• Leaders following this leadership style are able to transform self, employees, and organization.

Question 3 - As per which theory of Leadership, Leaders are not made by training, but they are born. SEBI Grade
A – Phase 2 – 2018

A. Tolstoy Theory
B. Birth and Death Theory
C. Trait Theory
D. Inheritance Theory
E. None of the above

Answer – Option C

Explanation

The trait leadership theory believes that people have certain traits that will make them excel in leadership
roles. That is, certain qualities such as intelligence, sense of responsibility, creativity and other values puts

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anyone in the shoes of a good leader. Traits are relatively stable over time, differ across individuals (e.g.,
some people are outgoing whereas others are not), and influence behavior.

Some of the major traits that are found in effective leader are

• Physical features: These include height, weight, and appearance etc. These are in-born features. Good
physical features attract others
• Knowledge
• Intellectual: Intelligence and Knowledge
• Self-Confidence
• Decisiveness
• Integrity: Integrity refers to honesty and transparency in working

Question 4 - In Managerial Grid of leadership, which type of Leader is there at coordinates X-9 and Y-9? SEBI
Grade A – Phase 2 – 2018

A. Indifferent leader
B. Country Club leader
C. Team manager leader
D. Impoverished leader
E. None of the above

Answer – Option C

Explanation
The Blake-Mouton Managerial Grid is a system that can be used to group like leaders into categories based on
the methods that they use. This can be used to identify a manager's existing leadership style and provide a
training path to the ideal leadership style required.

The matrix analyses a manager’s style of leadership by the consideration of two dimensions.

1. The managers concern for production (or the task) such as work efficiency or volume of output.
2. The managers concern for people (or relationships) such as satisfying personal relations and establishing
trust.

As per this style there are following five leadership styles

I. Impoverished Management or Indifferent or 1,1 Managerial Style —This is also termed as evade an
elude. It is called 1,1 managerial style due to coordinates of such a style on the managerial grid. In this
case, the manager is failing both in terms of the task and the people and is not a desirable position.

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 II. Country Club Management or Accommodating or 1,9 Managerial Style- This is also termed as yield and
Comply. Manager has high concern to satisfy relationships, often at the expense of achieving the task.
Sub-ordinates are encouraged, supported and their needs are satisfied. Manager has high concern for
people and low concern for production. Manager is considered a big brother and social relationships
are given more importance.

III. Task Management or Authority Obedience Management Also Known as Produce or Perish Style or
Dictatorial Style or 9,1 Managerial Style: This is also termed as Control and dominate. Instead of paying
sole attention to the employees, this lead is only serving the needs of the project and the results they
are looking for. Human relationships and relationships are minimized.

IV. Team Management or also called Sound Style or 9,9 Managerial Style: This is also termed as contribute
and Commit This offers the best of both worlds. This manager is able to successfully juggle the needs
of the organization as a whole with the needs of the individual employees involved. The key is the
involvement and participation of those responsible in planning and execution of work.

V. Status Quo or Middle of the Road Style or 5,5 Managerial Style: This is also termed as balance and
compromise. Managers using this style try to balance between company goals and workers' needs. By
giving some concern to both people and production, managers who use this style hope to achieve
suitable performance but doing so gives away a bit of each concern so that neither production nor people
need are met.

Question 5 - In trait approach theory of leadership, intelligence, emotion, knowledge forms which type traits of
the leader? SEBI Grade A – Phase 2 – 2020

A. Intellectual traits
B. Personality traits
C. Communication traits
D. Conscientious traits
E. None of the above

Answer – Option A

Explanation –
Here the key words are Intelligence, emotion, and knowledge and these three traits forms a very integral part
of Intellectual traits,

• Emotional Intelligence - All great leaders are very emotionally intelligent. Emotional intelligence is the
ability to recognize and understand your own emotions and those of others.
• Perseverance. Great leaders don’t give up easily—they persevere. When faced with a problem or issue,
a great leader will work tirelessly to find the right solution.

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 • Positive- Anyone can stay positive and encouraged when things are going well, but only great leaders
can remain optimistic when things go downhill (or uphill, since it’s harder to push a stone up a hill, but
you get the picture).
• Knowledge - Technical skills which are required to complete a given task.

Question 6 – From the following options, identify the qualities of an effective leader? SEBI Grade A – Phase 2
– 2020

A. Task-Oriented
B. Task Oriented and Concern for the Team, makes employee feel important part of organization
C. Relationship Oriented but not task oriented
D. Self-centered
E. None of the above

Answer – Option B

In this question, the major focus is laid on the difference between successful leader and an effective leader

A leader can be successful, but he may not be effective but on the other hand if the leader is effective, he is also
successful. If a leader focuses on becoming effective first, the success will inevitably come after.

Successful leaders Effective Leaders

Employees respond to leader’s position Power Employees respond to leader’s personal Power
Employees contribute to Organizational Goals Employees perceive organizational goals as fulfilling
personal goals also

Leaders affect actions of subordinates Leaders affect attitude of subordinates

Leaders supervise the activities of subordinates Leaders exercise general supervision where
employees are motivated and take responsibility

Decisions are taken mostly at higher level Leader makes every team member give their
opinion and involves them in decision making

Successful in short term Long term influence over subordinate’s behavior

Question 7 - Transactional Leadership is a style of leadership in which leader promote compliance by follower
through both rewards and punishment. Transactional leadership is also known as _______? SEBI Grade A –
Phase 1 – 2022

A. Management Leadership
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B. Participative Leadership
C. Autocratic Leadership
D. Transformational leadership
E. Situational Leadership

Answer – Option A

Explanation
In this question, the concepts regarding transactional leader are tested, Transactional leadership, also known
as managerial leadership, leaders following this leadership, focuses on supervision, organization and
performance. Those using the transactional approach are not looking to change the future, they look to keep
things the same. Leaders using transactional leadership as a model pay attention to followers' work in order
to find faults and deviations.

This type of leadership is effective in crisis and emergency situations as well as for projects that need to be
carried out in a specific way

Transactional leadership is a style of management based on the setting of clear objectives for sub-ordinates
and with ‘punishment or reward’ to promote or encourage compliance e.g. carrot and stick approaches to
management

Question 8 - Which of the following is a leadership theory wherein a leader is seen as genuine, open, transparent
and they really care for the employees by nurturing the relationship between them. SEBI Grade A – Phase 1 –
2022

A. LMX theory of leadership

B. Servant theory of leadership
C. Autocratic theory of leadership
D. Participative theory of leadership
E. Authentic theory of leadership

Answer – Option E

Explanation
This is a very straightforward question based on the concept of Authentic Leadership.

Authentic Leadership works on the principle that a leader can prove their legitimacy by nurturing sincere
relationships with their subordinates and giving importance to their input.

An authentic leader encourages their subordinates to be more open; they appreciate their support in the
success of the organization. Their leadership style promotes both individual and team performance.

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Authentic Leadership focuses on the moral aspects of being a leader. Authentic leaders know who they are
and what they believe in, and they act on those values and beliefs openly and candidly.

Characteristics of Authentic Leaders:

• Authentic leaders are self-aware and genuine.

• Authentic leaders are mission driven and focused on results
• Authentic leaders lead with their heart
• Authentic leaders focus on the long-term
• They share information and encourage open communication.
• Their followers consider them ethical people and trust them as a result.

Question 9 - Identify the leadership style wherein a leader has inspirational and Charismatic Approach towards
the employees of the Organisation? SEBI Grade A – Phase 2 – 2022

A. Transactional leadership
B. Transformational leadership
C. Authoritarian Leadership
D. Delegative Leadership
E. None of the above
Answer – Option B

Explanation -
A transformational leader is a type of person in which the leader is not limited by his or her followers'
perception. The main objective is to work to change or transform his or her followers' needs and redirect their
thinking. Leaders that follow the transformation style of leading, challenge and inspire their followers with a
sense of purpose and excitement. Transformational leaders also create a vision of what they aspire to be, and
communicate this idea to others (their followers)

Additional features

• In this leadership style, leader has a great vision for the future
• A transformational leader inspires, motivates, and encourages his subordinates
• The leaders communicate and explain their vision to everyone and answer their doubts. Nothing is
enforced on the employees
• Leaders following this leadership style are able to transform self, employees, and organization

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 Explanation
PFRDA Grade A questions
Question 1 - __________ is one who makes subordinates feel that they are participating in decision making
process even though he has already taken the decision. PFRDA Grade A – Phase 1 – 2021

A. Manipulative Autocratic Leader

B. Democratic Leader
C. Paternalistic Leader
D. Free-rein Leader
E. None of the above

Answer – Option A

Explanation

Authoritarian leadership, also known as autocratic leadership, is a management style in which an individual has
total decision-making power and absolute control over his subordinates. An authoritarian leader makes
decisions on policies, procedures and group objectives with little or no input from his or her team members
or followers.

Further, there are 3 types of autocratic leaders

I. Strict Autocrat: Those who have a negative influence on the team because group members are
uniformed and afraid of leader.
II. Benevolent Autocrat: Those who may have positive influence on the team by using his power to disperse
rewards to the group. They can get high productivity from the people
III. Manipulative Autocrat: Those who make people believe they are participating in the process but in
reality, the decision has already been taken. Hence the correct answer will be option A.

Question 2 - _____________ is a managerial approach that involves a dominant authority figure who acts as a
patriarch or matriarch and treats employees and partners as though they are members of a large, extended
family. PFRDA Grade A – Phase 2 – 2021.

A. Paternalistic Leadership
B. Democratic Leadership
C. Laissez Faire Leadership
D. Both B and C
E. None of the above

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Answer – Option A

Explanation
Paternalistic leadership is a managerial approach that involves a dominant authority figure who acts as a
patriarch or matriarch and treats employees and partners as though they are members of a large, extended
family.

leader works to help, guide, protect and keep his followers happily working together as members of family. He
provides them with good working conditions, fringe benefits and employee services

Under such leadership style, leader takes input from the employees but at the end, it’s the leader who decide
and take actions, which are best for the Organisation. Hence the correct answer will be option A.

In exchange, the leader expects loyalty and trust from employees, as well as obedience. The relationship
between these co-workers and leader are extremely solid. The workers are expected to stay with a company for
a longer period because of the loyalty and trust. Not only do they treat each other like family inside the work
force, but outside too

Question 3 – From the following given options identify the leadership style wherein a leader creates harmony
in the workplace and make employees happy. The leader attempts to build strong relationships with employees
in hopes of building loyalty. PFRDA Grade A – Phase 1 – 2022.

A. Democratic Leadership
B. Paternalistic leadership
C. Affiliative leadership
D. Autocratic leadership
E. None of the above

Answer – Option C

Explanation -
Affiliative leadership is a type of leadership that promotes positivity, a harmonious workplace and team-
building.

This leadership style focuses on using conflict resolution and creating personal connections between employees
and their managers to build a sense of community and trust. Affiliative refers to behavior that promotes social
or emotional cohesion and problem-solving.

An affiliative leader adopts a people-first approach and is usually effective when there's a need to mend bad
feelings in a group or motivate others during heavy workload and stress. In other words, the task of an affiliative
leader is to create harmony in the workplace and make employees happy.

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Question 4 – As per the managerial grid, identify the leadership style wherein managers tries to bring the best
of both worlds, he tries to maintain good relations with the employees and he also makes sures that task is
performed as per best industry standards. PFRDA Grade A – Phase 1 – 2022.

A. Produce or Perish Style

B. Evade and Elude
C. Task management
D. Team management
E. Compromising

Answer – D

Explanation –
The Blake-Mouton Managerial Grid is a system that can be used to group like leaders into categories based on
the methods that they use. This can be used to identify a manager's existing leadership style and provide a
training path to the ideal leadership style required.

The matrix analyses a manager’s style of leadership by the consideration of two dimensions.
1. The managers concern for production (or the task) such as work efficiency or volume of output.
2. The managers concern for people (or relationships) such as satisfying personal relations and establishing
trust.

As per this style there are following five leadership styles

1. Impoverished Management or Indifferent or 1,1 Managerial Style —This is also termed as evade an
elude. It is called 1,1 managerial style due to coordinates of such a style on the managerial grid. In this
case, the manager is failing both in terms of the task and the people and is not a desirable position.

2. Country Club Management or Accommodating or 1,9 Managerial Style- This is also termed as yield and
comply. Manager has high concern to satisfy relationships, often at the expense of achieving the task.
Sub-ordinates are encouraged, supported and their needs are satisfied. Manager has high concern for
people and low concern for production. Manager is considered a big brother and social relationships are
given more importance.

3. Task Management or Authority Obedience Management Also Known as Produce or Perish Style or
Dictatorial Style or 9,1 Managerial Style: This is also termed as Control and dominate. Instead of paying
sole attention to the employees, this lead is only serving the needs of the project and the results they
are looking for. Human relationships and relationships are minimized.

4. Team Management or also called Sound Style or 9,9 Managerial Style: This is also termed as contribute
and Commit This offers the best of both worlds. This manager is able to successfully juggle the needs of
the organization as a whole with the needs of the individual employees involved. The key is the
involvement and participation of those responsible in planning and execution of work

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 5. Middle of the road leadership styles - This is also termed as balance and compromise. Managers using
this style try to balance between company goals and workers' needs. By giving some concern to both
people and production, managers who use this style hope to achieve suitable performance but doing so
gives away a bit of each concern so that neither production nor people need are met.

Question 5 - From the following given options identify the leadership style wherein a leader focuses on
supervision, organization and performance and such leaders pay attention to followers' work in order to find
faults and deviations. PFRDA Grade A – Phase 1 – 2022.

A. Democratic Leadership
B. Free-rein leadership
C. Participative leadership
D. Transactional leadership
E. None of the above

Answer – D

Explanation -
Transactional leadership, also known as managerial leadership focuses on supervision, organization and
performance. Those using the transactional approach are not looking to change the future, they look to keep
things the same. Leaders using transactional leadership as a model pay attention to followers' work in order
to find faults and deviations.

This type of leadership is effective in crisis and emergency situations as well as for projects that need to be
carried out in a specific way

In this leadership style -

1. Transactional leadership is a style of management based on the setting of clear objectives for sub-ordinates
and with ‘punishment or reward’ to promote or encourage compliance e.g. carrot and stick approaches to
management
2. The prime purpose of a subordinate is to do what their manager tells them to do
3. When the Transactional Leader allocates work to a subordinate, they are considered to be fully
responsible for it, whether or not they have the resources or capability to carry it out

Question 6 - Leadership can be defined as the process to guide the employees towards the achievement of
organisational goal. In the same regard, which of the following leadership style if followed under Laissez Faire
leadership? PFRDA Grade A – Phase 2 – 2022.

A. Autocratic Leadership style

B. Democratic Leadership Style
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C. Delegative Leadership Style
D. Paternalistic Leadership Style
E. None of the above

Answer – C

Explanation
Laissez-faire leadership, also known as delegative leadership, is a type of leadership style in which leaders are
hands-off and allow group members to make the decisions. Researchers have found that this is generally the
leadership style that leads to the lowest productivity among group members.

In this leadership style

1. The manager provides little or no direction and gives staff as much freedom as possible
2. The superior decides the broad policies and limits of actions and the entire process is left to the
subordinates
3. All authority or power given to the staff and they determine goals, make decisions, and resolve problems
on their own
4. Managers exists as contact man with outsiders to bring for his group the information and resources it needs
to accomplish its job
5. It allows followers a self-rule, while at the same time offering guidance and support when requested. The
laissez-faire leader using guided freedom provides the followers with all materials necessary to accomplish
their goals, but does not directly participate in decision making unless the followers request their assistance

Hence the correct answer will be option C

Question 7 - Leadership is the art of motivating a group of people to act toward achieving a common goal. There
are different leadership styles, in the same regard, identify the leadership style wherein a leader consults and
invite the suggestions from the fellow team members. PFRDA Grade A – Phase 2 – 2022.

A. Democratic Leadership Style

B. Servant Leadership Style
C. Narcissism Leadership Style
D. Autocratic Leadership
E. None of the above

Answer – A

Explanation

Democratic Leadership Style (Participative Style) - This leadership style is also called Shared Leadership or
Consultative style

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In this leadership style,

➢ Leader Encourages staff to be a part of the decision making

➢ Leader Keeps staff informed about everything that affects their work and shares decision making and
problem-solving responsibilities
➢ Employees like the trust they receive and respond with cooperation, team spirit, and high morale.
➢ The idea is to give equal treatment to everyone with Social Equality
➢ Delegation of authority up to a limit to subordinates to implement decisions
➢ The Goals of staff are set by themselves
➢ Achievement is recognized and encouragement is given
➢ There is decentralized authority

Hence the correct answer will be option A.

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