AS Business Studies

Leadership &

Management style

Task: Leaders…

Write down the five most powerful and influential living people you know about who are described as leaders. (Try and make them business people.)

Write down the special qualities you think these people have that make them leaders.

Compare this list with the person next to you and produce a list of 5 attributes that make an individual a leader

Possible Answers - Leaders

What makes a good leader?

Intelligent Self motivated Communication skills

Is a manager also a leader?

Leadership and Management

Managers and leaders are not the same thing

Leadership - deciding on a direction for a company in relation to its objectives and inspiring staff to achieve those objectives. Leaders elevate and give vision to their followers.

Management – getting things done by organising other people to do it. They are concerned with day-to-day activities of a firm.

Management is a position of authority whereas leadership is a personal skill

A company must aim to have managers with leadership skills

Leadership/Management styles

Authoritarian/Autocratic – The leader makes all decisions and tells subordinates what to do. They ask for little feedback and keep close control of their workers. Success is rewarded and there are penalties for failure. Advantages are that there are clear lines of authority which allows quick decision to be made. Workers may feel demotivated and frustrated if they are not involved in decision making.

Paternalistic – The leader makes all decisions in a ‘father like’ style with the best interest of workers in mind. An autocratic style with close supervision of workers. The advantage is that workers should recognise the manager trying to support their needs.

Management styles contd.

Democratic – Leaders listen to workers who play a full part in decision making. Delegation and consultation take place and two way communication is encouraged. This should motivate workers and better quality decisions should be made as many opinions are considered. However decisions may be slower and mangers may become concerned at the loss of control and power.

Laissez faire – ‘let it be’ managers leave employees to get on with their work with little or no interference.

Task 1: Checklist Questions…

1. What is the difference between a manager and a leader? (2 marks)

2. Explain what is meant by the following terms:

a) Authoritarian/Autocratic (2 marks)

b) Paternalistic (2 marks)

c) Democratic (2 marks)

d) Laissez faire (2 marks)

3. Northwood school in London has just been classed as a failing school. They have failed their Ofsted and exam results are as low as 24% A*-C. Teaching and non teaching staff are looking to leave and behaviour of students has also declined. The LEA are looking a appoint a new head teacher.

Evaluate the possible leadership styles the new head teacher could implement. (12 marks)

Scenario 1

It is 4pm on a Wednesday afternoon and the manger of a clothing factory has just received a call from a major client. They want an order for the following Friday to be brought forward and delivered this Friday by 4pm at the latest. The manager has to decide what to do. He knows workers will have to do overtime to get the order finished and also realises that he may lose a major customer if he cannot deliver.

1. How would an autocratic, paternalistic and democratic leader react.

2. What would be the most effective leadership style and why?

Scenario 2

Jane and Ruth are sales consultants for an insurance company and both had set targets for a six month period. Ruth met her target comfortably and received the agreed bonus 35,500 for reaching on target earnings. Jane failed to reach her agreed target because her sales manager left the company and poached three of Jane’s best customers just before they signed agreements with Jane. Jane’s manager now has to decide what to do about her bonus. Will she receive the same as Ruth or will it be deducted?

1. How would an autocratic, paternalistic and democratic leader react.

2. What would be the most effective leadership style and why?

Scenario 2

Scenario 3

A client has contacted your firm of commercial designers and asked them to come up with a new logo that represents a change in the direction the firm wishes to go in. The new logo and associated corporate branding of headed paper, publications, packaging and so on is set to coincide with the launch of the re-branding in two months time at the start of the client company's new season sales drive. If it does not meet this deadline, the client will run the risk of falling behind their rivals whom it has suffered against in recent years.

1. How would an autocratic, paternalistic and democratic leader react.

2. What would be the most effective leadership style and why?

Scenario 3

Scenario 4

Following a Health and Safety Executive (HSE) visit, a chemical company has been warned that its safety procedures in parts of the plant are lacking. It must take steps to remedy these weaknesses within three weeks or face having the plant shut down. The guidelines for remedying the weaknesses are readily available in detailed HSE publications.

1. How would an autocratic, paternalistic and democratic leader react.

2. What would be the most effective leadership style and why?

Scenario 4

Influences on the choice of management style

The company structure, especially the span of control

The organisation’s culture and tradition

The personalities and skills of managers/leaders

The particular situation

The nature of the tasks involved

The employees themselves, their skills and abilities

The group size

The amount of time available to make a decision or take action

Therefore the most appropriate management style will often depend on the circumstances

AS Business StudiesLeadership

& Management

styles Lesson 2

Leadership styles recap.

Match the styles of leadership to the following descriptions: Authoritarian, Paternalistic, Democratic

Running a business on the basis of majority decisions.

SNR managers take the decisions with little involvement of junior employees.

Dictatorial, but decisions are taken in the best interest of the employees.

Democratic

Authoritarian

Paternalistic

McGregor’s Theory X and Y

Douglas McGregor (1906-64) carried out research into the attitudes of management

Divided the way managers view workers into two distinct categories

These management viewpoints determine the way management act and make decisions

Task: Read through the handout from Business Review. Then produce a list of the characteristics

of each theory

Activity: Case Studies & Questions

Complete the response questions on page 249 of the text book.

Then complete the TESCO case study.

Answer each question using exam technique

Content, Application, Analysis and Evaluation