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The followers themselves take decisions for which they get authority under free rein style. Free-rein leadership, also called Laissez-Faire, is a type of leadership style in which leaders are hands-off and allow group members to make the decisions. Mangers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

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Formal organization gives importance to terms of authority and functions. The formal organization is basically goal-oriented entity that exist to accurate the efforts of individuals and it refers to the structure of jobs and positions with clearly defined functions, responsibilities and authorities.

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Non-programmed decision is also called strategic decisions. Strategic decisions are the decisions that are concerned with whole environment in which the firm operates, the entire resources and the people who form the company and the interface between the two.