Unit 04 Leadership and

Management
1 - Leadership and Management theories and
principles , and their impact on the effectiveness of
an organization - II

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1.3.2. Leadership skills

Leaders can motivate and lead their teams. They can also delegate
responsibilities.

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▪ Communication

It is very important that leaders can clearly and briefly explain the various
details of their organization to their employees.

▪ Delegation

Designated tasks can help employees focus on other important tasks.

▪ Inspirational motivation

One of the ways to motivate employees is through recognition and rewards.

This can be done through the building of employee self-esteem. There are
various skills needed to effectively motivate employees.
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▪ Positive attitude

Great leaders have a positive mindset. They must motivate and influence
their team members to reach goals.

▪ Trustworthiness

Being able to discuss employee concerns and issues is very important to

them. Being open and truthful can help them feel valued and included in the
organization.

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▪ Creative thinking

Creative thinking is an important aspect of a leader's abilities. It allows

them to think outside the box when making decisions.

▪ Innovative problem solving

Leaders who are good at solving problems are those who can provide
solutions to difficult situations.

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1.3.3. Competences
Competence is a combination of various skills, attitudes, and personal traits
that allow a person to achieve specific goals in a work setting.
A competence essentially consists of three elements:
1.knowledge: information and experience
2.skills: highly developed physical and/or mental abilities and coordination
required to perform a specific task
3.attitudes/personal traits: a person’s values as they define them as an
individual and how they relate to and interact with their surroundings

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1.3.4. The hard skills of management versus the
soft skills of leadership

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In most jobs, the soft and hard skills are necessary to perform well.

▪ Hard skills vary depending on the job title and the level of experience
required to perform it.

Ex : Marketing Skills, IT Skills, Financial Modeling

▪ Soft skills are the habits and traits that can affect how you interact with
others.

Ex : Interpersonal Skills, Communication, Problem Solving, Leadership

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▪ 1.3.5. Approaches to leadership

Situational leadership approach

▪ Early theories focused on identifying characteristics that make a leader
successful. The lack of a set of common traits prevented researchers from
developing a strategy for handling various scenarios.

▪ The Hersey-Blanchard situational leadership theory was developed by Dr.

Paul Hersey and Kenneth Blanchard. He discussed the various leadership
styles.

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▪ Telling: The leader sets the direction and the authority for the employees.

▪ Selling: The leader is still responsible for the decisions, but he works to
convince the employees that he or she is the right person to lead them.

▪ Participating: The leader works with his team to make decisions together.
He encourages and supports them.

▪ Delegating: The leader assigns responsibility for team members'

decisions but still oversees their work.

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In addition to these four approaches to leadership, there are also four levels
of follower maturity:

▪ Level M1: Followers have low competence and low commitment.

▪ Level M2: Followers have low competence, but high commitment.

▪ Level M3: Followers have high competence, but low commitment and
confidence.

▪ Level M4: Followers have high competence and high commitment and
confidence.

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▪ Transformational leadership approach
Transformational leadership is a style of management that encourages and
inspires employees to create change. This type of management style allows
employees to take on more responsibility and makes them more
independent.

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Transformational leaders are those who can connect with and create a
culture of change within their organizations.

▪ Encouraging followers to develop their positive development.

▪ An environment that values moral standards.

▪ The Fosters an environment where people can thrive and achieve ethical
behavior.

▪ This culture encourages employees to work for the common good.

▪ This system gives employees the freedom to make their own decisions.

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Inspirational leadership approach

Being an inspiring leader can help individuals develop their personal and
professional goals.There are multiple benefits of inspirational leadership, including:

▪ 1. Meeting goals: An inspiring leader can help a team reach goals and exceed
them.

▪ 2. Increased engagement: Motivating and inspiring team members helps them

achieve success.

▪ 3. Committed employees: When leaders are committed to being the best, their
employees will aspire to follow them.

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1.4. Impacts of leadership and management
1.4.1. Positive impacts for improving business performance, effective
management of resources, innovation.

▪ Good leaders create a competitive advantage that leads to higher levels of

profitability and loyalty.

▪ They influence many other outcomes such as sales and customer

satisfaction.

▪ Effective leaders help their employees to discuss any topic with ease.

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▪ Creating a safe environment to discuss new ideas and share information is
key to effective leadership.

▪ Good leaders are good at creating a culture of genuine relationships with

their employees.

▪ Good leaders treat their subordinates with the same care and respect.

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▪ 1.4.2. Negative impacts

▪ The loss of competitive advantage can be expressed as damages.

▪ stagnation and decline.

▪ Employee development suffers with poor leadership

▪ Poor leaders impact team performance

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