MANAGEMENT AND LEADERSHIP

Management and Managers

• Identify and explain the functions of management, including Mintzberg’s roles of
management

• Identify and explain the functions, roles and styles

The functions of management, including Mintzberg’s roles of management:

Management: the process of dealing with or controlling things or people.

Functions of managers

Managers of a business perform many important functions

 Setting objectives and planning

 Organizing resource to meet the objectives
 Directing and motivate staff
 Coordinating activities
 Controlling and measuring performance against targets

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The role of management

 Functions of management – include Planning, organising, co-ordinating,

commanding and controlling

1. Planning: Looking at where the business is not and where it wants to be in the
future. Once this has been decided, management must then set clear objectives
and decide on the actions needed for these to be achieved

2. Organising: This function of management is about preparing and organising

the resources needed to achieve the planned goals and objectives. Management
will have to decide the best way of completing important tasks at the lowest
possible cost to the business

3. Commanding: This function involves the control and supervision of

subordinates. Commanding should also aim to motivate workers towards
achieving the planned objectives.

4. Coordinating: Making sure that all of the different parts of the business are
working together towards achieving the business's goals and corporate objectives

5. Controlling: Involves checking to make sure that the plan is working

Mintzberg’s Management Roles

To carry out these functions, managers have to undertake many

different roles.
 Interpersonal roles: dealing with and motivating staff at all levels of the
organisation
 Informational roles: acting as a source, receiver and transmitter of
information
 Decisional roles: take decisions and allocate resource to meet the
organisations’ objectives

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 Mintzberg’s managerial roles

Role Description Example

Interpersonal roles
symbolic leader of opening new
the organisation factories/offices;
Figurehead undertaking duties hosting receptions;
of a social or legal giving important
nature presentations

Motivating subordinates. any management tasks

selecting and training involving subordinate staff
Leader other managers/staff

Internal and external - leading and participating in

linking with managers meetings; business
and leaders of other correspondence with other
Liaison divisions of the business organisations
and other organisations

Informational roles
Monitor collecting data relevant attending seminars,
to the business's business conferences,
operations research groups, reading
research reports to gain
information about the industry

Making information communicating with key

available- sending staff within the
information collected organisation, using
Disseminator from external and appropriate means
internal sources to
the relevant people
within the organisation

communicating presenting reports

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 information about to groups of
the organisation - stakeholders (e.g.
Spokesperson its current position annual general
and achievements - meeting) and
to external groups communicating with
and people the press and TV
media
Decisional roles
looking for new Encouraging workers and
ideas/opportunities to managers to develop new
develop the business ideas from within the business
Entrepreneur and holding meetings aimed at
putting new ideas into
effect
responding to changing taking decisions and
situations that may put developing strategies on
the business at risk, how the business should
Disturbance assuming responsibility respond/deal with threats,
handler when threatening factors such as new
develop competitors or changes in the
economic environment
deciding on the drawing up and
spending of the approving estimates
organisation's and budgets for the business
Resource financial resources and its departments;
allocator and the allocation deciding on staffing
of its physical and levels for departments and
human resources within departments

representing the Conducting negotiations and

organisation in all building up official
Negotiator important negotiations, links between the business and
e.g. with government other
organisations; meeting
government ministers to
influence policy

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Leadership
• Explain the purpose of leadership

• Identify and explain the leadership roles in business (directors, managers, supervisors,
worker representatives)

• Identify and explain the qualities of a good leader

• Discuss the leadership styles: autocratic, democratic, laissez-faire

• Explain McGregor’s leadership styles

• Discuss the Goleman’s four competencies of emotional intelligence: self-awareness,

social awareness, self-management and social skills

Leadership – the art of motivating a group of people towards achieving a

common objective

Purpose of leadership – sets the direction and vision for an organization.

Leadership roles in business:

Managers – person appointed to be responsible for setting objectives, organising

resources and motivating staff so that the organisation’s aims are met. Managers
must also coordinate activities in the firm, as well as controlling and measuring
performance against targets.

Directors – senior managers elected to office by shareholders in a limited

company/ incorporated business. They are usually head of a major functional
department, such as marketing.

Supervisors – are appointed by management to watch over the work of others.

This is usually not a decision-making role, but they will have responsibility for
leading a team of people in working towards pre-set goals

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Workers’ Representatives – person elected by the workers in order to discuss
areas of common concern with managers

Informal Leader – a person who has no formal authority but has the respect of
colleagues and some power over them

Delegation – passing authority down the organisational hierarchy

Empowerment – allows workers some degree of control over how their task
should be undertaken

Qualities of a good leader

 desire to succeed and natural self-confidence

 ability to think beyond the obvious, be creative and can encourage others
 incisive mind: identify the heart of the issue
 multi-talented

Choice of Leadership Styles

Styles of leadership

Leadership styles: the way in which managers take decisions and communicate
with their staff.

Autocratic leadership – a style of leadership that keeps all decision making at the
centre of the organisation. Lower levels of the hierarchy are given little delegated
authority and communication is usually just one way.

Advantages
 Experienced leaders have full
control of decision making
 Good in crisis situations
Disadvantages
 Demotivates staff who want
to contribute and accept
responsibility
 Decisions do not benefit from

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 staff input

Democratic leadership – a style of leadership that allows the majority opinion of

staff to influence decisions. It involves a great deal of participation from the
workforce in taking decisions but can be time consuming.

Advantages Disadvantages
 Encourages participation in  Consultation with staff can be
decision making time consuming
 Two-way communication is  Issues may be sensitive to staff
used which allows feedback e.g. job losses or too secret for
from staff staff to be aware of
Laissez-Faire leadership – a style of leadership that leaves much of the running
and decision making of the business to the workforce- a ‘hands off’ approach and
the reverse of autocratic. This may be appropriate in research and development
departments staffed by skilled specialists that are self-motivated.

Advantages
 Gives employees as much
freedom as possible
 Managers communicate
goals to employees but allow
them to choose how they
wish to work
Disadvantages
 Lack of feedback may be
demotivating
 Workers may not appreciate
lack of structure and
direction in their work

Paternalistic – a style of leadership based on the approach that the manager is in

a better position than the workers to know what is best for the organisation

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Features of the main leadership styles - autocratic, democratic and laissez-faire

Autocratic: A leadership style where the leader makes all the decisions

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Democratic: A leadership style where workers take part in decision-making
Laissez-faire: A leadership style where most of the decisions are left to the
workers
Autocratic Democratic Laissez-faire
Objectives Set by the Set by the leader, Usually set by the leader
leader without but the workers are with or without the input
any input from consulted from workers
workers
Decision-making Taken by the Workers are Delegated to workers who
leader without encouraged to take take the decisions
any input from part, but leader still
workers makes the final
decision
Supervision of Closely Leader is available No supervision by leader
workers supervised by to solve problems
the leader but close
supervision is not
needed
Availability of Workers are Workers given Workers provided with all
information given very information which the information they need
limited allows them to fully to take decisions
information participate in the
about the business
business
Communication One-way, from Two-way, feedback Little feedback from
leader to is encouraged manager, mostly
worker. No communication is with the
feedback leader from subordinates
Motivation Likely to be low Likely to be high Could be high or low,
levels depending on the task and
skill of workers

McGregor’s Theory X and Y leadership styles: (The attitude/views

towards workers)
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Theory X
McGregor’s Theory X – managers believe the workers dislike work, lazy, will avoid
responsibility and are not creative

 Workers are lazy; they dislike work and are unprepared to take
responsibilities.
 Autocratic
- Conclusions: dislike work, avoid responsibilities, do not contribute to work

Theory Y

McGregor’s Theory Y – managers believe that workers can derive as much

enjoyment from work as from rest and play, will accept responsibility and are
creative

 Enjoy working, as it’s natural to rest and play; prepared for responsibility,
and creative.
 Democratic.
- Conclusions: Contribute to work.

General View – workers will behave as a result of management attitudes

Choice of leadership style

There is no one ‘right’ leadership style. The most effective leadership style
depends on the following factors:
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  Training and experience of workforce
 Importance of situation and risks involved
 Attitude of workforce
 Attitude of managers
 Amount of time available for consultation

Emotional intelligence (EI)

Goleman has suggested that effective leadership depends not just on the personal
qualities but also on whether people have emotional intelligence. Attempts to
measure emotional intelligence lead to use of personality test which produce an
emotional quotient (EQ)

Emotional Intelligence – the ability of managers to understand their own

emotions, and those of the people they work with, to achieve better business
performance. It involves understanding yourself and understanding others

Goleman’s four competencies of emotional intelligence: self-awareness, social

awareness, self-management and social skills. Emotional Intelligence
competencies should try to develop and improve on:

 Self-Awareness – knowing what we feel using that to guide decision making

 Self-Management – being able to recover quickly from stress
 Social Awareness – sensing what others are feeling
 Social Skills – handling emotions in relationships well and understanding
social situations

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