Final answer:
Transformational leadership is the approach that balances fairness and accountability while promoting a culture of reporting errors and near misses. It contrasts with Theory X management styles, as it encourages feedback, employee empowerment, and a flat organizational structure that values everyone's input.
Step-by-step explanation:
The leadership approach in organizations that emphasizes a balance between fairness and accountability, while also fostering a culture that encourages individuals to report errors and near misses, is known as transformational leadership.
Organizations with flat structures typically promote these transformational leadership qualities by soliciting feedback from all levels of employees, forming collegial relationships, and expecting managers to be resourceful and accountable.