This is also known as the Laissez-faire leadership style. A manager having free-rein style delegates authority to the subordinates completely and expects them to plan, motivate and control themselves as well as be responsible for their own actions.
Such a leader avoids responsibility, avoids power and relinquishes the leadership position. He/she perceives that the costs associated with leading are more than its benefits. He/she may also be lacking in self-confidence, knowledge and may have a fear of failure.
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Free-rein leadership style is appropriate when:
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(1) The goals of an institution have been communicated well and are acceptable to the subordinates.
(2) Subordinates are highly knowledgeable, motivated, well-trained and psycho-socially mature. They are ready to assume responsibility. This style could lead to self-interest among subordinates, chaos and break-down of the system.