Business 2
Management and leadership
—> Managers vs leaders
Role of manager
– Oversee day to day organisation of a team or specific function
– Planning: set overall business aims and objectives, decide on how to achieve these
– Organising: ensure everything is in palce
– Directing: lead and motivate others
– Controlling: track progress and make plans
Leader vs manager
. Vision vs execution
. Influence vs control
. People vs processes
. Long term vs short term
. Creativity vs efficiency
—> Leadership styles
– Different approached to leading and managing team or business
– Reflect behaviours and attitudes of a leader toward team members and influence culture,
productivity, performance
Autocratic leadership
– Holds absolute power and authority over a business
– Doesn’t seek input or agreement from others
– Complete control over decision making process
5
Beneficial in:
4
3– Crisis situations
2– Hierarchal organisations
1– Time sensitive projects
– Inexperienced or unmotivated teams
– Maintaining order and discipline
Disadvantages:
– Reduced employee morale
– Limited creativity
– Lack of input, restricting ideas and innovations
Paternalistic leadership
– Leader assumes ‘fatherly’ role
, Advantages
– Leader makes decisions for employees and also shows concern for well being and
development
– Responsibility for welfare of employees
– Create a sense of security, increasing loyalty, reducing staff turnover
Disadvantages
– Can be controlling and limit creativity and innovation
– Create dependency on leader, restricts personal and professional development
Democratic leadership
– Involves employees and encourage discussion
– Most effective in organisations with skills, experienced, creative employees
Advantages
– Encourages participation and involvement, leads to higher employee engagement, job
satisfaction, empowerment
– Encourage creativity and innovations
– Lead to more comprehensive problem solving and decision making
Disadvantages
– Decisions made through majority agreement which can be time consuming
– Conflicts can disagreements may arise
– May result in compromise on quality of decisions, popular decisions may overshadow
knowledge
Laissez-Faire leadership
– Leaders play minimal role in managing business team
– Significant autonomy and freedom
– Most appropriate with high skilled and self obviated team
Advantages
– Encourage creativity and innovation, freedom to explore ideas , make decision independently
– Employees feel empowered, enhance job satisfaction, motivation, sense of responsibility
– Greater flexibility in adapting to changing circumstances
Disadvantages
– Absences of direct guidance and supervision could lead to employers struggling with decision
making, lead to inefficiency and lack of coordination, decrease in productivity, make wrong
decisions
– Risk of inconsistency, lack of cohesion and potential conflicts within team
– Challenging to monitor progress, identify issues ensure goals are being met, lead to
decreased productivity and difficulty in holding individuals accountable
Trait theory of leadership
Management and leadership
—> Managers vs leaders
Role of manager
– Oversee day to day organisation of a team or specific function
– Planning: set overall business aims and objectives, decide on how to achieve these
– Organising: ensure everything is in palce
– Directing: lead and motivate others
– Controlling: track progress and make plans
Leader vs manager
. Vision vs execution
. Influence vs control
. People vs processes
. Long term vs short term
. Creativity vs efficiency
—> Leadership styles
– Different approached to leading and managing team or business
– Reflect behaviours and attitudes of a leader toward team members and influence culture,
productivity, performance
Autocratic leadership
– Holds absolute power and authority over a business
– Doesn’t seek input or agreement from others
– Complete control over decision making process
5
Beneficial in:
4
3– Crisis situations
2– Hierarchal organisations
1– Time sensitive projects
– Inexperienced or unmotivated teams
– Maintaining order and discipline
Disadvantages:
– Reduced employee morale
– Limited creativity
– Lack of input, restricting ideas and innovations
Paternalistic leadership
– Leader assumes ‘fatherly’ role
, Advantages
– Leader makes decisions for employees and also shows concern for well being and
development
– Responsibility for welfare of employees
– Create a sense of security, increasing loyalty, reducing staff turnover
Disadvantages
– Can be controlling and limit creativity and innovation
– Create dependency on leader, restricts personal and professional development
Democratic leadership
– Involves employees and encourage discussion
– Most effective in organisations with skills, experienced, creative employees
Advantages
– Encourages participation and involvement, leads to higher employee engagement, job
satisfaction, empowerment
– Encourage creativity and innovations
– Lead to more comprehensive problem solving and decision making
Disadvantages
– Decisions made through majority agreement which can be time consuming
– Conflicts can disagreements may arise
– May result in compromise on quality of decisions, popular decisions may overshadow
knowledge
Laissez-Faire leadership
– Leaders play minimal role in managing business team
– Significant autonomy and freedom
– Most appropriate with high skilled and self obviated team
Advantages
– Encourage creativity and innovation, freedom to explore ideas , make decision independently
– Employees feel empowered, enhance job satisfaction, motivation, sense of responsibility
– Greater flexibility in adapting to changing circumstances
Disadvantages
– Absences of direct guidance and supervision could lead to employers struggling with decision
making, lead to inefficiency and lack of coordination, decrease in productivity, make wrong
decisions
– Risk of inconsistency, lack of cohesion and potential conflicts within team
– Challenging to monitor progress, identify issues ensure goals are being met, lead to
decreased productivity and difficulty in holding individuals accountable
Trait theory of leadership
