IB Business and Management

2.4 Leadership

LeadershipFunction: noun 1 : the office or

position of a leader; 2 : capacity to lead 3 : the act or an instance of

leading — Source: Merriam-Webster On-line

"Leadership is the ability of a superior to influence the

behavior of a subordinate or group and persuade them to follow a particular course of

action." — Chester Bernard

"Leadership is the art to of influencing and directing

people in such a way that will win their obedience,

confidence, respect and loyal cooperation in achieving

common objectives." — U. S. Air Force

"A manager takes people where they want to go. A great leader takes people

where they don't necessarily want to go but ought to."

— Rosalyn Carter

"Managers have subordinates — leaders have followers."

— Murray Johannsen

"The first job of a leader is to define a vision for the

organization.... Leadership is the capacity to translate

vision into reality." — Warren Bennis, President,

University of Cincinnati

"My definition of a leader . . . is a man who can persuade

people to do what they don't want to do, or do what

they're too lazy to do, and like it." —

Harry S. Truman, 1884-1972, Thirty-third President of the

United States

Task – 5 mins

• In Pairs• Write your own definition of

leadership

LEADER• Think about your definition• What qualities would someone who is

a good leader possess?

Leadership Qualities

• A vision and sense of direction as to where the business should be going

• Innovation and the creation of new ways of doing things

• Dedication and commitment to the business

• Ability, self-belief and qualities that promote support from others.

Leadership/management styles

The way that managers/leaders deal with their staff is known as their Management Style

Sometimes Management Styles are categorised:

• Autocratic• Democratic• Laissez – Faire• Situation Leadership

Looking at the words can youTell anything about what these

management styles involve?

Task

• Use the Unit 2.4 chapter of the text book to help you fill in the Leadership types table

Autocratic

• Autocratic managers are Authoritarian

• They tell employees what to do and want it done their way

• They tend to use top down communication

Democratic

• Democratic managers like to involve employees in decisions (Consultative)

• They listen to ideas and encourage staff to contribute

• Communication tends to be 2 way• Delegation occurs

Laissez - Faire

• A relaxed approach to management• Laissez – Faire managers trust staff

and give direction with minimal supervision

Factors affecting Leadership style

Leadership Style

Nature of the task

Personality

Time constraint

s

Skills of manager and the workforce

Rate of change

Level of risk

Conclusion

• Each management style can work well in different situations

• Managers need to be adaptable and change their management style depending on the situation

• Trend towards democratic management style (due to motivation and production techniques)

Task

• Watch the video• What type of management style do

you think each of the managers has?• Which one of the managers would

you prefer to work for? Why?

Types of Leadership Style

Autocratic:Leader makes decisions without reference to

anyone elseHigh 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

Types of Leadership Style

Democratic:Encourages decision making from different

perspectivesWorkers feel ownership of the firm and its ideasImproves the sharing of ideas and experiences

within the businessCan delay decision making

Types of Leadership Style

Consultative: process of consultation before decisions are taken

Persuasive: Leader takes decisions and seeks to persuade others that the decision is correct

Types of Leadership Style

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

Leadership Theories

Blake Mouton Managerial GridPeople or Task focused

1:9 maximum concern for people, minimal concern for product, ‘friendly’ manager, lower productivity, conflict ignored

1:1 mimimal concern for people and product, laissez faire, little effort or involvement

9:1 minimum concern for people, purely task focused, people ‘a number’, autocratic, maximum control

9:9 ‘ideal’ style, maximum concern for people and product, leader gets involved with the people

5:5 a balance of people/product focus, some control but not too much, can fail when high productivity is important

XX

X

X

X

People

Task

1

1

9

9

1:9 maximum concern for people, minimal concern for product, ‘friendly’ manager, lower productivity, conflict ignored

1:1 mimimal concern for people and product, laissez faire, little effort or involvement

9:1 minimum concern for people, purely task focused, people ‘a number’, autocratic, maximum control

9:9 ‘ideal’ style, maximum concern for people and product, leader gets involved with the people

5:5 a balance of people/product focus, some control but not too much, can fail when high productivity is important

Blake’s Grid

Categorise some teachers in terms of Blake’s grid

Likert's Leadership Styles

AutocraticDemocraticExploitive

authoritative Benevolent authoritative

Consultative Participative

Likert's Leadership Styles

1. Exploitive authoritative- the leader has a low concern for people - uses fear-based methods such as threats to achieve conformance

-Communication is almost entirely one-way

2. Benevolent authoritative- the leader has some concern for people - the leader now uses rewards to encourage

appropriate performance - listens more to concerns of subordinates- most major decisions are still made by the leader.

Likert's Leadership Styles

3. Consultative- the leader is making genuine efforts

to listen to the ideas of subordinates. - major decisions are still largely

made by the leader.

4. Participative- the leader makes maximum use of

including subordinates in decision-making.

Tannenbaum SchmidtContinuum of Leadership