In the last few decades, several styles of leadership have been identified. The authoritarian leader holds all authority and responsibility, with communication usually moving from top to bottom. The laissez-faire leader waives responsibility and allows subordinates to work as they choose with a minimum of interference. Communication flows horizontally among group members. The democratic leader holds final responsibility but also delegates authority to others, who participate in determining work assignments.
Communication moves both upward and downward.
Each of these styles has advantages and disadvantages. The style that is most effective depends on the interaction among the subordinates, the characteristics of the work situation, and the manager's personality. Managerial decision making involves four steps. Identifying the Problem or Opportunity. Sometimes managers' preconceptions of the problem prevent them from seeing the situation as it actually is.