2.3.

Leadership and Management

 Defining managers and leaders
 Leaders are strategy makers and leaders generally are critical for firms.
 Managers can also be leaders at the lower levels.
 Traits of leaders ( charisma, idealism, attraction, motivator, communicator,
influencer)
 Are leaders born or made?
 Types of leaders.
 Autocracy – autocratic style of management / autocratic style of
leadership. ( a style where the decisions are made by one person only. DO
OR DIE BUT NEVER SAY WHY ? FOLLOW THE RULES … ONE
MAN SHOW….
 The best leadership in the world if the company wants to remain in
command and no conflict is encouraged.
 There can demotivation since the lower staff levels are not involved in
decision making. Their opinions are unheard.
 Chain of command is maintained.
 MILITARY ACROSS THE GLOBE FOLLOWS AUTOCRACY
 Democratic Leadership style: ( listen to all, majority is the authority, 51 percent of
the majority, every team member is given the chance to contribute in decision
making and the decision shall be taken with consensus.
 Lazzaire Faire ( let the people do their work with freedom)
 The most linient style of management
 In some industries is very successful.
 Such style is result oriented and no micro management is appreciated.
 It is practiced in a situation where people are mature, skilled, aware of the
situation and results are more important.

Who is a successful leader? Traits of leadership

 Role of Managers in organizations

 Types of tasks managers perform ( Mintzberg model of management )
 Types of leadership in organizations
 Past papers.

 Key function of management

 Managers have 3 major tasks/roles:
 Interpersonal role/routine tasks
 Dealing with employee-related issues
 Communicating with external stakeholders

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 Other set/recurring tasks – meetings, staff appraisal, etc.
 Informational role/communication tasks
 Decision-making role/planning tasks
 Fayol’s Theory
 Management plans, organizes, commands, coordinates, and controls
business activities
 Need for division of labor, specialization, military-like structure,
authoritarian management, unity in command, equity, and morale
 Drucker’s Theory
 Encouragement of decentralization
 Managers have to:
 Set organizational objectives
 Organizing tasks and people
 Communicating and motivating
 Measuring performance

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 Leadership vs. management
 Leadership
 Process of influencing and inspiring others to achieve goals (usually with
broad goals and no time frame)
 Management
 Process of problem solving and decision making as well as planning,
organizing, budgeting, and controlling (usually with specific goals and definite
timeframe)
 Time and devotion – leadership is a 24 hour job
 Roles and responsibilities – leaders innovate, managers administer
 Influence on others – leaders uses emotion, managers rationalize
 Vision – leaders have them
 Leadership styles
 Autocratic (authoritarian)
 Makes all decisions, doesn’t delegate tasks or responsibility
 Appropriate when workers are unskilled, unmotivated
 No feedback from subordinates as their opinions/suggestions are ignored
(alienates workforce)
 Democratic
 Involves subordinates in decision-making process
 Better morale and motivation among employees, better decisions
 Appropriate when manager can’t always be around, employees are
competent
 Not suitable for very large workforce
 Decision-making may take a long time
 Laissez-faire
 Decision-making and authority is delegated
 Causes high morale/motivation among subordinates
 Appropriate for situations where creative ideas are important, subordinates
are competent, skilled, and motivated
 Decision making and time taken to accomplish tasks may take long due to
lack of supervision
 Situational leadership (contingency management)
 Not based on single approach
 Using right person and the right style for the right situation
 CLOTS – factors that affect situational leadership
 Culture – culture/group norms in organization
 Leader – how experienced/trusted are leaders
 Organization – tall or flat hierarchical structure
 Task – to what extent is task difficult/urgent/important?
 Subordinates – what is level of skill/motivation/unity of members?
how many employees are there?

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 Past Paper Questions Year 2019:
2019/P1/ 11/ Q #5:

(a) Analyse the difference between autocratic and laissez-faire leadership. [8]
(b) ‘A democratic style of leadership is the most effective leadership style for a manufacturing
business in a very competitive industry.’ Discuss this view. [12]

2019/P1/12/ Q #2

(a) Define the term ‘business leadership’. [2]

(b) Briefly explain two styles of business leadership. [3]

2019/P2/ 21/Case 1/ Q#d:

(d) Recommend which of Mintzberg’s management roles is likely to be the most important for
the new Managing Director of WL. Justify your recommendation. [11]