Advantages:
i. Development of Self-confidence in Subordinates: When all the authority in their work performance is given to the employees, they become habituated in taking decisions which creates self-confidence in them. They start doing better work in future.
ii. High-level Motivation: When the manager gives the subordinates all the authority by showing full confidence in them they start considering themselves an important part of the concern. In this way they, start feeling that they are not a part of the enterprise but are the enterprise itself. With the onset of this feeling, there is nothing left in their motivation.
Disadvantages:
i. Difficulty in Cooperation: Since there is no close supervision and control by the managers, everybody starts functioning independently. Some employees with opposite point of view become a hurdle in the attainment of objectives of other people. Such people do not work themselves, nor can they see others work. It becomes difficult for the manager to establish coordination among such employees.
ii. Lack of Importance of Managerial Post: In this leadership style, the post of a manager is rendered less important because he does not make any plan, or take any decision or exercise any control.
