Management Skills 1: Leading

Unit 3
Leading
Def: Leading is a management skill that encourages people to work
towards a goal.

A leader:
• Delegates responsibilities
• Influences the actions of others
• Guides others

Leaders in business, sport, entertainment?

Benefits of leadership
1 Achieving organisational goals

2 Management time

3 Increased employee motivation

4 Supporting change

5 Staff recruitment and retention

Leadership styles
You may be asked
to compare and
The three most common leadership styles are: contrast these 3
styles in an exam

1 Autocratic

2 Democratic

3 Laissez-faire
Leadership styles: Autocratic features
Very strict e.g. the military, Donald Trump

• Autocratic leaders have complete power and

Authority control in the organisation.

• Autocratic leaders do not consult with

Decision-making employees when making decisions.

• They do not trust employees and may believe

Trust that they are lazy and try to avoid work.

• Autocratic leaders use threats and

Motivation punishment to motivate their employees to
work harder.
Leadership Styles: Autocratic
AUTOCRATIC LEADERSHIP
Advantages
1 Quick Decision-making
Decisions can be made quickly as the autocratic
leader does not consult with others. Therefore,
the business does not miss out on opportunities.
2 Quick Task Completion
The autocratic leader gives orders to staff to
ensure that tasks are completed quickly and
deadlines are not missed.
3 Improved Productivity
Employees work hard as they know that they are
being supervised by management. This can
improve productivity in the workplace.
Disadvantages
1 Management Stress
The autocratic leader makes all business decisions
and does not delegate tasks. This can lead to
management stress and burnout.
2 Staff Motivation
Motivation levels are low as staff follow orders
and jobs are not delegated to them. This can lead
to higher absenteeism and staff turnover.
3 Industrial Action
Employees may feel undervalued, which damages
the relationship between management and
employees. This may lead to increased industrial
action, e.g. work to rule and official strikes.
Leadership styles: Democratic features
Encourages participation e.g. Larry Page - Google
• Democratic managers delegate tasks to
Authority employees. However, ultimate responsibility for all
tasks lies with the manager.

• Democratic leaders include employees when they

Decision-making make business decisions.

• Democratic leaders trust their employees and

Trust empower them to make decisions on behalf of
the business.

• Employees are motivated as they feel valued

Motivation when they are delegated tasks and are involved in
decision-making in the business.
Leadership Styles: Democratic
DEMOCRATIC LEADERSHIP
Advantages
1 Increased Intrapreneurship
Employees are willing to come up with ideas that
can help the business to increase sales or decrease
business costs, e.g. a new product.
2 Future Promotion
Delegation and empowerment help employees to
develop new skills and knowledge. When
promotions arise in the business they can apply for
these roles.
3 Employee Motivation
Employees have high levels of motivation, as they
feel valued. This can lead to higher productivity
levels among staff.
Disadvantages
1 Slow Decision-making
Decision-making is slow as managers consult with
their employees before making major business
decisions.
2 Frustrated Employees
Employees may feel frustrated if their ideas are
not incorporated into business decisions. They may
decide not to contribute their ideas in the future.
3 Management Resentment
Some managers may resent empowering
employees, as it reduces their control in the
business.
Leadership styles: Laissez-faire features
Hands off approach e.g. Warren Buffett – CEO & billionaire
• Laissez-faire managers set goals for employees and
Authority allow staff to decide how best to achieve those
goals.

• Laissez-faire managers empower employees to

Decision-making make decisions on behalf of the business.

• Management outlines the business objectives and

Trust trusts employees to work independently without
close management supervision.

• Employees are highly motivated under this style of

Motivation leadership, as they feel empowered to achieve the
firm’s goals.
Leadership Styles: Laissez-faire
LAISSEZ-FAIRE LEADERSHIP
Advantages
1 Employee Motivation
Employee motivation is high among
empowered employees, as they feel trusted by
management. They work hard for the benefit
of the business and to achieve the firm’s goals.
2 Improved Skills and Knowledge
Delegated work helps employees to improve
their skills and knowledge. This prepares them
for future promotions in the business.
3 Intrapreneurship
Employees use their intrapreneurial skills to
develop new products or identify new
processes. This can help to reduce business
costs and improve sales.
Disadvantages
1 Reduced Productivity
Some employees may take advantage of the lack of
regular management supervision. This can create
tension among team members and reduce business
productivity.
2 Poor Decisions
Some employees can make poor decisions that damage
the firm’s reputation or result in a business missing an
opportunity in the market.
3 Poor Industrial Relations
Management may blame employees for mistakes made
or for not achieving targets. This can lead to poor
industrial relations between management and staff.
Delegation
Def: Delegation involves assigning tasks to another person, e.g. a
manager delegates tasks to a subordinate (someone below them).

For successful delegation there should be:

Open
communication Open communication
Employee skills
and experience
Employee skills and
Managerial experience
control
Managerial
control
Delegation
Def: Delegation involves assigning tasks to another person, e.g. a
manager delegates tasks to a subordinate (someone below them).

Open • Delegated tasks and the required standards should be

clearly communicated to employees.
communication
Open
communication
Employee skills
Employee skills
and experience • Management must choose employees with adequate skills
and experience to complete the assigned task.
and experience
Managerial
control
• Ultimate responsibility for task completion lies with
Managerial management. Therefore, managers must implement a
control system to ensure that errors are identified and
control corrected quickly.
Delegation
Advantages

1 Management Workload
Delegation reduces managerial workload and allows managers to focus their
time on more important managerial tasks and decisions.

2 Increased Employee Motivation

Delegating tasks to employees shows that management trusts them. Increased
motivation can help to boost productivity in the workplace.

3 Management Training
Delegation gives employees the opportunity to develop their skills and
knowledge and helps them to train as managers.
Delegation
Disadvantages

1 Employee Stress
Some employees may not want the additional responsibility of delegated
tasks and may become stressed and want to leave the firm.

2 Poor Decision-Making
Employees lacking experience and suitable guidance may make poor decisions
when they receive delegated tasks. This could damage the firm’s reputation.

3 Employee Resentment
Employees may resent management if they feel that the delegated tasks are
simply tasks that the manager does not like to do.
Key terms
https://www.youtube.com/watch?v=uhUM3hN3qGU
• leading From 1.37
• leadership styles
• autocratic leadership
• democratic leadership
• empowerment
• laissez-faire leadership
• delegation
Past exam questions
Higher Level
2018: Outline one appropriate leadership style a manager in a retail
outlet could adopt, giving a reason for your choice.

2012: Outline two styles of leadership and illustrate how each of these
styles may be appropriate in different business situations.

2009: Explain the term delegation. Describe the benefits of delegation

for a manager
Past exam questions
Ordinary level:
2016: Explain two features of a democratic leadership style.

2015: Explain the difference between a democratic and an autocratic

leader.

2014: Explain two types of leadership styles.