Final answer:
The Leadership Grid model identifies democratic management as the style most positively associated with desirable outcomes. Democratic leaders focus on group participation and consensus, which can lead to productivity and a healthy work environment when applied effectively. Other styles, such as authoritarian, laissez-faire, and transactional, may be effective in certain contexts but have distinct limitations and risks.
Step-by-step explanation:
The Leadership Grid model suggests various approaches based on concern for production (task orientation) and concern for people (relationship orientation). In terms of the Leadership Grid model, the style most positively associated with productivity, profitability, and physical and mental health is that of democratic management. Democratic leaders encourage group participation in decision-making, strive for consensus before action, and may proceed slowly due to the time requirements for consensus building. While group factionalizing is a potential downside, this leadership style is generally associated with positive outcomes when effectively managed due to its balance between task orientation and relationship orientation.
An authoritarian leader communicates in a top-down fashion, issuing orders and assigning tasks, which can be effective in certain situations but risks worker alienation. Laissez-faire leadership, being hands-off, can be effective with highly motivated and mature individuals but risks group dissolution. Transactional leadership is focused on supervision, organizational goals, and maintaining the status quo through a system of rewards and punishments. However, research, such as the work by Eagly, Johannesen-Schmidt, & van Engen (2003), shows that transformational leadership—characterized by charisma, inspiration, intellectual stimulation, and consideration for individuals—is often more effective than transactional, although leaders can display elements of both.