Final answer:
The Hierarchical mode of management grants complete control but also encompasses all associated risks.
Step-by-step explanation:
B) Hierarchical mode. In a Hierarchical management mode, also known as the autocratic or authoritative mode, there is a clear and centralized chain of command with a single leader at the top who holds complete control and decision-making authority. This mode is characterized by top-down communication, where instructions and directives flow from the top management to the lower levels of the organization. While the Hierarchical mode grants complete control to the leader or top management, it also encompasses all associated risks because decision-making is concentrated in the hands of a few individuals. This concentration of power can lead to a lack of flexibility, potential resistance from subordinates, and a higher likelihood of decision errors due to limited input from various perspectives. The other management modes mentioned:
A) Collaborative mode - Emphasizes teamwork and shared decision-making.
C) Democratic mode - Involves decision-making through a process of voting or consensus.
D) Laissez-faire mode - Allows employees significant freedom in decision-making with minimal intervention from leaders. These modes distribute decision-making authority differently and come with their own set of advantages and challenges.