3.

2 Leadership

 Leadership is the ability to influence and direct people in order to meet the goals of a group
 Management is the process through which company resources are used and decisions made in
order to meet the objectives of the firm
 Leaders are those people that can inspire and motivate people to meet objectives
 Managers will set objectives and decide how to go about achieving them
 Often leaders and managers are one and the same person
 Autocratic (Authoritarian) – the leader makes a decision without consultation e.g. in the
army when quick decisions are required in battle
 Democratic – the leader consults his team but makes the final decision e.g. a skilled
workforce where each team member can make strong contributions
 Laissez-Faire (to leave alone) – the leader allows his team to make decisions e.g.
experienced and competent staff given freedom to make decisions themselves
 Paternalistic – the leader acts in a fatherly way towards the workforce – making decisions
based on the needs of the workforce as well as the business e.g. often family or smaller
organisations with a more caring style of leadership,
 Bureaucratic – leaders work to rules and regulations, ‘by the book’, e.g. in bureaucratic
organisations where the culture is very much led by the rules
Autocratic leadership style

 Focus of power is with the manager

 Very little responsibility is delegated down to their subordinates

 Communication is top-down and one-way

 Can cause much resentment and frustration amongst the workforce

 Advantages: clear lines of authority and quick decisions.

 Disadvantages: frustration and resentment as system is so dependent on the manager and

non-participation of workers in decision-making.
Democratic Leadership style

 Focus of power is more with the group as a whole

 Involves managers and leaders taking into account the views of the workforce before
implementing any new system

 Emphasis on delegation and consultation

 Can lead to increased levels of morale and motivation amongst the workforce, but…

 … can also result in far more time being taken to achieve the results since many people are
involved in discussing the decision

 Advantages: workers take part in decision making, therefore allowing input from people with
relevant skills and knowledge, which may lead to improved morale and better-quality
decisions.

 Disadvantages: decision making process is slower (need to consult and discuss) and may be
conflict as to where power lies and whether there is loss of management control.
 Laissez Faire

 Leader has little input into day-to-day decision-making

 This is where employees are set objectives, and then they have to decide how best to achieve
them using the available resourcesThis method of leadership can result in high levels of
enthusiasm for the task in-hand, but… … can at times rely too much on the skills of the
workforce
Bureaucratic leadership is leadership based upon fixed official duties under a hierarchy of
authority, applying a system of rules for management and decision-making. This style of
leadership can be advantageous in highly regulated lines of business, and it can be an efficient
management style in companies that don't require much creativity or innovation from employees.

 Fixed official duties

 Hierarchy of authority
 Technical expertise
 System of rules
Paternalistic Leadership Style

 This is fairly autocratic in its approach to dealing with employees, although their social and
welfare needs are taken into account when a decision is made that will affect them
 Decision-making still remains at the top
 The leader is likely to consult the workforce before implementing any decision, but… … is
unlikely to listen to much of the feedback
Mitzberg Interpersonal

 Figurehead- represent their colleagues. They carry out social, ceremonial and legal
responsibilities and are expected to be a source of inspiration.
 Leader – creates and maintains an effective working environment and motivates and
develops more junior employees. Manage the performance and responsibilities of everyone
in the team.
 Liaison – managers must communicate with internal and external contacts. They need to
network effectively to gather information.
Mitzberg Informational

 Monitor – managers search for internal and external information relevant to the business.
Monitor performance and welfare.
 Disseminator – central communication role. This type of manager passes on valuable
information to others in the organisation.
 Spokesperson – managers represent and speak for the organisation.
Mintzberg Decisional

 Entrepreneur – the entrepreneur plans and initiates change within the business.
 Disturbance handler – deal with unexpected crises.
 Resource allocator – manager takes decisions on the most effective use of an organisations
resources including finance, staff and capital equipment.
 Negotiator – in this role managers engage in important negotiations within and outside the
business.
Mintzberg: Conclusions
 Managers work is fragmented as they move away from one task to another. They need to
focus on what really matters and what makes a difference.
 Managers focus on short-term immediate problems. They are often fire-fighting, dealing with
the problem in front of them.
 Managers actually control little of what they do from day-to-day-things happen to them.