2.3.

Leadership and Management

 Key function of management
 Managers have 3 major tasks/roles:
 Interpersonal role/routine tasks
 Dealing with employee-related issues
 Communicating with external stakeholders
 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
 Charles Handy’s Theory
 Managers are intelligent, have initiative and are self-assured
 Theory of Management
 Managers as general practitioners (deal with health of business)
 Managers as confronters of dilemmas
 Managers as balancers of cultural mixes
 Helicopter factor – need to rise and see the bigger picture
 Drucker’s Theory
 Encouragement of decentralization
 Managers have to:
 Set organizational objectives
 Organizing tasks and people
 Communicating and motivating
 Measuring performance
 Developing people

 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?