LEADERSHIP &

MANAGEMENT

IB Business and Management

Sha Tin College Business Education Department

 Leadership & Management
 Leadership styles
 Trait theory
 Contingency theory
 Situational theory
 Difference between leadership and
management
 Key functions of management

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 What makes these people great leaders?

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 Are these great leaders?

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 What is leadership?
 Influences
 Motivates
 Inspires

 … to achieve a goal

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 Leadership Styles
 Autocratic
 Democratic
 Laissez Faire
 Situational

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 Autocratic
 Leader makes decisions
without reference to anyone
else
 High degree of dependency
on the leader
 Can create de-motivation
and alienation of staff
 May be valuable in some
types of business where
decisions need to be made
quickly and decisively

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 Democratic
 Encourages decision making
from different perspectives
 leadership may be
emphasised throughout the
organisation
 Consultative: process of
consultation before decisions
are taken
 Persuasive: Leader takes
decision and seeks to
persuade others that the
decision is correct

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 Democratic
 May help motivation and
involvement
 Workers feel ownership of
the firm and its ideas
 Improves the sharing of
ideas and experiences within
the business
 Can delay decision making

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 Laissez-Faire
 ‘Let it be’ – the leadership
responsibilities are shared by all
 Can be very useful in businesses
where creative ideas are
important
 Can be highly motivational, as
people have control over their
working life
 Can make coordination and
decision making time-
consuming and lacking in
overall direction
 Relies on good team work
 Relies on good interpersonal
relations

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 Trait and Situation Theory
 Trait theorists believe
that leadership depends
on personal qualities

 Situational leadership
theory presumes that
different styles of
leadership will be better
in different situations

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 Trait Theories
 Assume the determining factor in an
effective leader is a set of personal
characteristics
 Study successful leaders and determine
which characteristics they have in
common
 Only about 5 per cent of the
characteristics identified in successful
leaders have been found to be widely
shared. Of these, three stand out as
significant:
 Above average intelligence
 Initiative
 Self-assurance

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 Trait Theories
 There are also significant
exceptions: some individuals
with all three characteristics
are ineffective leaders, and
some who lack these
characteristics are very
effective leaders.

 Despite these criticisms, trait

theories continue to
influence many
organisational procedures
for selecting leaders.

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 Trait Theories of Leadership
 For the trait theory,  For example the ENFJ is an
Myers-Briggs: Type outstanding leader of
Indicator (MBTI) have groups, both task groups
identify there are 16 and growth groups.
personality types of
 Found in only about 5% of
people whose have population the most rarely to
find in the personality trait.
different styles and level
for being leader.
 The Myers-Briggs types
 Extraverts VS Introverts What is your type?
 Sensers VS iNtuitives
 Thinkers VS Feelers
<<click here>>
 Judgers VS Perceivers

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 Likert
 Rensis Likert identified four main styles of leadership, in
particular around decision-making and the degree to which
people are involved in the decision.

some opportunities subordinates fully

for consultation involved in decisions

Exploitive Benevolent
Consultative Participative
Authoritative Authoritative

power and direction from subordinates consulted;

the top; threats and rewards rather than
punishment used threats used

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 Tannenbaum & Schmidt
 Robert Tannenbaum and Warren Schmidt developed a
continuum of leadership behavior to describe a range of
behavioral patterns available to a manager.

 They related the leader's actions to the degree of authority

used by him and the amount of freedom available to his
subordinates.

 Tannenbaum and Schmidt felt that a leader should not

choose one style and adhere to it strictly but should be
flexible and adapt his style to the situation.

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 Tannenbaum & Schmidt
Subordinate-
Boss-Centered Centered
Leadership Leadership

Use of authority
by the manager Area of freedom
for subordinates

Manager Manager Manager Manager Manager Manager Manager

makes “sells” presents presents presents defines permits
decision decision ideas and tentative problem limits; asks subordinates
and invites decision gets group to to function
announces questions subject to suggestions make within
it change , makes decision limits
decision defined by
superior
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 Blake & Mouton
 Leaders may be concerned for their people and
they also must also have some concern for the
work to be done.
 The question is, how much attention to they
pay to one or the other?
 Blake and Mouton defined the Management
Grid in the early 1960s.

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 Blake & Mouton

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 Situational Theories of Leadership

 Leadership as being more  May depend on:

flexible – different leadership  Type of leader
styles used at different times  Type of staff
depending on the  Type of task
circumstance.  History of the business
 Suggests leadership is not a  Culture of the business
fixed series of characteristics  Quality of the relationships
that can be transposed into
different contexts

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 Blanchard & Hersey model
 Based on Blake &
Mouton
 task
 people
 Also includes
 Competence of staff
 Commitment of staff

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 Path Goal theory (Robert House)
 Leader must adapt
style
 Key Situational
Factors
 Subordinate
Personality
 Characteristics of the
environment

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 Contingency Theory
 Fiedler suggested that 1. Relationships
the appropriate  Leader & staff
leadership style is
contingent upon three
main factors: 2. Situation
 Task

3. Authority
 Of the leader

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 Fiedler
 Fiedler finds that where the task
is highly structured, and the
leader liked, trusted and
powerful, then the most
effective leadership style is a
directive, task-oriented style.
 Similarly, where the task is
ambiguous and the leader is in a
weak position, then the same
directive, task-oriented style is
most effective.
 In intermediate situations where
the task is ambiguous and the
leader liked and respected, then
a participative, person-centred
style is found to be most
effective.

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 Difference between Management and
Leadership
 Are managers leaders?
 Are leaders managers?
 How are they different?
 Time & Devotion
 Roles & Responsibilities
 Influence on others
 Risk taking
 Vision

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 Managers vs Leaders
MANAGERS LEADERS
 Do things right  Do the right things
 Directing & Controlling  Motivating & Inspiring
 Delegating  Empowering
 Problem Solvers  Innovators
 Position  Action
 Tactical  Strategic
 Listened to  Respected

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 Common Management Functions

1) Planning: setting clear objectives.

2) Organising: dividing the work into smaller tasks and
delegating to others.
3) Staffing: having the ‘right’ person in the ‘right’ job (known
as Human Resource Management).
4) Directing: decision-making and giving instructions to others.
5) Budgeting: preparing a detailed financial plan for the next
trading year.
6) Co-ordinating: Bringing the various parts of the business
together.

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 Fayol
 Functions of Management
 Planning
 Setting the course of action
 Organising
 Allocating resources
 Commanding
 Give instructions
 Coordinating
 All departments work together
 Controlling
 Responsible for performance

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 Drucker
 Management - gives direction to the
organization by providing leadership and
deciding how to use organizational resources.
 Basic Functions of Management
 Setting Objectives
 Organizing tasks & people
 Communicating & motivating
 Measuring performance
 Developing people
http://www.druckerinstitute.com/about-peter-drucker.html

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 Drucker
 Management by
Objectives (MBO)
 Managers and staff
agree on SMART
objectives
 Regular feedback
from manager

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 Handy
 Key roles of
management  Effective management
 General practitioners requires the helicopter
 Confronters of factor
dilemmas
 Balancers of cultural  Micro-management
mixes
leads to failure

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 Research Tasks
 Compare and contrast the  Compare and contrast the
theories of two of the theories of two of the
following management following leadership theorists:
theorists:  Fiedler
 Likert
 Drucker
 Fayol
 Blake & Mouton
 Handy
 Tannenbaum & Schmidt
 Robert House
 Blanchard & Hersey
 Present your findings in a
report:  Present your findings in a report:
 Overview of each theory  Overview of each theory
 Similarities  Similarities
 Differences  Differences
 Conclusions  Conclusions
 Bibliography  Bibliography

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 Learning Outcomes
 Evaluate the effectiveness of various styles of leadership and
their implications for organizations.
 Discuss whether successful leadership in identified
situations is the result of natural skills and abilities, or is a
consequence of the circumstances faced.
 Apply to given situations the theories of writers such as
Likert, Fiedler, Blake and Mouton, and Tannenbaum and
Schmidt.
 Explain the key functions of management, applying the
theories of writers such as Fayol, Handy and Drucker.

Sha Tin College Business Education Department