Laissez-Faire Leadership: A Contradiction in Terms or a Legitimate Style of Management

Abstract

This research examines if laissez-faire leadership is a usable leadership style; how laissez-faire leadership affects employee motivation and how its weaknesses can be mitigated by using multiple leadership styles. The focus is on the impact of laissez faire management on employees and how to address its weaknesses in practice. The study will use both primary and secondary data collection, including different articles on the topic and interviews with a large Finnish company. The topic is important given the increase in remote work and the need for leaders to motivate employees during uncertain times. Different theories will be introduced in this work in addition to laissez faire, such as managing by exception, contingent rewarding, and reinforcement theory. It has been noted that laissez-faire leadership can be effective, and its weaknesses can be overcome when combined with other leadership styles. Tangible and intangible rewards, including contingent rewards, can be used to motivate employees. In addition, remote work, which has become more popular due to the Covid-19 pandemic, can also increase work motivation, and give employees room for personal growth, creativity, and autonomy. In conclusion, combining laissez-faire leadership with other styles is recommended. Using multiple leadership styles can be effective and positively impact motivation. Therefore, the thesis question "Laissez Faire Leadership: A Contradiction in Terms or a Legitimate Style of Management?" answers in favour of the former, and that laissez-faire management should be combined with other management and leadership theories for a legitimate and effective leadership style.