LEADERSHIP

And management
styles
Key Terms
Management-
Management is the process of setting
objectives and making the most efficient use of
financial, human and physical resources to
achieve these objectives.
Leadership-
Leadership is influencing others to
achieve certain aims or objectives
Key Terms
Quality circles- Single status-
These are teams of Single status
employees drawn from entails the removal of
all levels of the all barriers that
organisation and given distinguish between
the task of solving different grades of staff
operational problems. in the organisation.
Consultation-
this is when the
managers ask for and
take into account the
views of subordinates
What do Leaders do?
Leaders or managers have a broad rang of
duties which may include:
 Deciding objectives for the organisation.
 Canvassing opinion.
 Deciding Structure.
What Makes A Good Leader?
 Possessing an air of authority
 Possessing self motivation and the desire
to achieve great things
 Being informed and knowledgeable about
matters relating to the business
Styles Of Leadership

PATERNALISTIC

LEADERSHIP

AUTOCRATIC DEMOCRATIC
Authoritarian Style
 Description-
Senior managers take decisions with little involvement of
junior employees.
 Key Features-
Sets Objectives, allocates tasks and leader retains control
throughout
 Communication Used-
one way communication from leader to subordinate.
 Circumstances-
when quick decisions are required or large numbers of
unskilled employees are involved.
Authoritarian Or Autocratic
Leadership
 Authoritarian leaders like to
retain control over the
business and do not give the
employees much freedom of
action.
 They pass instructions to junior
employees which leaves the
subordinates few opportunities
to discuss ideas and issues.
 Autocratic leaders set
objectives, allocate tasks and
expect obedience from
subordinates
ORGANISATIONS MANAGED IN AN
AUTOCRATIC STYLE MAY FACE
A NUMBER OF DIFFICULTIES:
 Mistakes by subordinates can
result in criticism and
sometimes disciplinary action.
 Senior managers tend to be
overworked, and staff turnover
is often high
Paternalistic Style
 Description-
Dictatorial, though decisions are made in the best interests of
the employees.
 Key Features-
Explains decisions and ensures that employees’ social and
leisure needs are meet.
 Communication Used-
Generally from leader downwards though some feedback
takes place.
 Circumstances
This is autocratic leadership with a human face, though it can
appear democratic.
Paternalistic Leadership
 Paternalistic Leadership is autocratic in
approach.
 The paternal company treats its workforce as
family.
 Paternalistic leaders do gain the loyalty of their
subordinates and the frequently have a low rate
of staff turnover.
 Paternalistic companies do not encourage their
employees to be creative or to use their
initiative.
Democratic Style
 Description
This is the running of a business on the basis of majority
decisions
 Key Features
This style of leadership encourages employees to take part in
decision making and Uses delegation.
 Communication Used
There is extensive two-way communication between junior and
senior employees.
 Circumstances
Useful when complex decisions are made requiring a range of
specialist skills.
Democratic Or Participative
Leadership
 Business decisions Democratic leadership
are made on the view encourages the following.
of the majority.  Leaders and subordinates
discuss issues and employee
 The successful participation is actively
operation of this style encouraged.
requires,  The leader acts upon advice,
 This type of and explains the reasons for
their decisions.
leadership may be
more popular
because,
STYLE VERSATILITY

Managers may believe that there is not

a single perfect style of leadership.
It may be that the best managers are those
who adopt to a single suitable style to the
circumstances. Therefore it may be that
the best managers are those that can
adapt to more than one style of leadership
Douglas Mc Gregor’s Theory X And Y
 Douglas Mc Gregor was an American psychologist who
researched into management in large companies.
 Mc Gregor’s researched revealed that many leaders
assumed their workers were motivated solely by money.
 Theory Y leaders believed that employees wanted more
than financial gain from working.
 Mc Gregor didn’t believe in the views expressed by
theory X leaders.
 Mc Gregor work set out the leadership style likely to
introduce the methods of motivation proposed by
Maslow and Herzberg.
Theory X And Y
 Although Mc Gregor wholeheartedly supported the
theory Y view of leadership, this doesn’t mean that
theory X has no place.
 A theory X view of leadership would be appropriate
under the same circumstances as an autocratic style.
 A theory X manager is likely to adopt an autocratic style,
whilst a theory Y leader would be expected to use a
more democratic approach.
Theory Beliefs.
Theory X Leaders Theory Y Leaders
Believe: Believe:
The average employee dislikes The typical worker does not have
work and will avoid it if possible. an in-built dislike of work.

The typical worker wants to avoid Other means exist to motivate

responsibility and has little workers rather than control and
ambition. punishment.
Employees look for security above In the right circumstances,
all else at work. workers seek responsibility.
Management By Objectives
According to Drucker’s theory to management by
objectives, managers should:
 Identify and agree targets for achievement with
subordinates
 Evaluate overtime the extent to which these objectives
are met.
The objectives set for each individual should be co-
ordinated to ensure that the business achieves its
corporate objectives. Each member of staff, therefore,
makes a contribution towards the business objectives.
The Advantages Of MBO
• It can improve communication within the
organisation as the target setting and evaluation
takes place
• MBO can highlight training needs for managers
and subordinates, improving their performance
and productivity.
The Disadvantages Of MBO

 All employees within the organisation must

be committed to the technique if it is to
succeed and benefit the business.
 Setting targets for highly specialised
employees can be difficult and tends to
remove the focus from the mainstream
corporate objectives.
Team-Based Leadership

 Team working occurs when production is

organised into substantial units of work.
 Team work is common within
organisations and often accompanies
delayering major multinational
organisations such as volvo.
Potential Problems With Teams

 Teams may aim for goals that are not the

corporate objectives.
 Teams can become complacent, confident
in their own success and unaware of major
changes taking place outside the team.
Single Status

Under single status all employees within an

organisation.
 Work similar hours.
 Wear the same company – often a
company overall.
 Are entitled to similar holiday
arrangements.
Delegation And Consultation

 Delegation means managers give junior

employees the authority to carry out
particular tasks.
 A consultative manager would seek
employees views on important issues
Delegation And Consultation

Advantages Disadvantages

Controlling subordinates is Trusting subordinates can be risky

expensive, for example and responsibility remains with the
supervisors may be needed. senior managers.
Delegation relaxes control

Without delegation there is no Once trust is given, it is impossible

prospective managers to withdraw it