In which leadership approach does the leader actively monitor performance and take corrective actions when required?

The correct choice highlights the active management-by-exception approach, where leaders closely monitor their team's performance and intervene as necessary to address any issues or deviations from expected standards. This style is characterized by a proactive stance, as the leader takes initiative to correct problems before they escalate, providing ongoing feedback and support.

Active management-by-exception is focused on maintaining high standards and ensuring that organizational goals are met through direct observation and intervention. Leaders employing this approach are attentive to potential discrepancies in performance and are willing to engage in corrective actions to guide their team back on track. This level of involvement can boost team morale and effectiveness, as employees feel supported and guided by their leader.

In contrast, other approaches such as laissez-faire leadership involve a lack of direct supervision and intervention, which is the opposite of what active management-by-exception entails. Passive management-by-exception also suggests a reactionary style where leaders only intervene when issues arise, rather than actively monitoring and addressing performance. Transactional leadership, while it includes the monitoring aspect, typically emphasizes a system of rewards and penalties rather than the proactive corrective actions characteristic of the selected answer. Thus, active management-by-exception stands out as the most suitable response for a leader who is actively engaged in managing and improving performance.