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Management: The process of setting objectives and making the most efficient use of financial,

human and physical resources to achieve these objectives. Key tasks include planning, control and

co-ordination.

Leadership : Influencing others to achieve certain aims or objectives. Effective

leadership skills can help a manager to carry out their duties

• Decide upon objectives for the organisation

• Provide expertise and set standards for the organisation

• Decide upon company structure and shape the culture of the business

A good leader will be informed and knowledgeable about matters relating to the business

A good leader should be self-motivated and desire to achieve great things

A good leader should possess an air for authority

A good leader would have the ability to think creatively and to solve problems

Three basic categories of leadership style…

Autocratic or authoritarian leadership

Paternalistic leadership

Democratic leadership

Such leaders…

• Take decisions with little involvement of junior employees

• Allocate tasks

• Set objectives

• Will contain total control throughout

Such leaders, use a one-way communication system, downwards from leader to subordinate.

This style of leadership may be appropriate when quick decisions are required, or when large numbers of un-skilled employees are involved.

This is a leadership style which is quite dictatorial, yet decisions are taken in the best interests of

the employees.

This style’s key features include…

• This form of leadership explains decisions

• It also ensures employees’ social and leisure needs are met.

This form of leadership involves running a business on the basis on the majority of decisions.

This methods main features include…

This form of leadership encourages employees to take part in decision-making

This method also uses delegation

There is a two-way communication between senior and junior employees.

• Bill Gates was a man, famous for his democratic

management style at Microsoft.

• He has actively involved employees in key management and strategic decisions.

• Most of his time is devoted to meeting with customers and staying in contact with Microsoft employees around the world via e-mail.

o In 1964, Douglas published ‘The Human Side of Enterprise.’

o This book is famous for discovering how leaders’ attitudes may influence their behaviour.

o The book is noted for its comparison of two types of leader that McGregor called ‘TheoryX’ and ‘TheoryY’ leaders.

The average employee dislike work and will avoid it if at all possible

People must be controlled and directed and punished, if necessary, to put in a real effort at work

The typical worker wants to avoid responsibility and has little ambition

Employees look for security above all else at work

• Working is as natural as play or rest for the average employee

• The typical worker does not have an in-built dislike for work

• Other means exist to motivate workers rather than control and punishment

• In the right circumstances, workers seek responsibility

• Most employees have imagination and creativity that may be used to help organisations achieve their goals

Peter Drucker published ‘The Practice of Management,’ which included his theory of Management by Objectives.

According to Drucker’s theory of management, managers should;

Identify and agree targets for achievement with sub-ordinates

Negotiate the support that will be required to achieve these targets

Evaluate over time the extent to which these objectives are met

It can improve the communication within the organisation as the target-setting and evaluation process takes place

Employees may be motivated by understanding what they are trying to achieve, and how it helps the business achieve its overall goal.

MBO can highlight training needs for managers and sub-ordinates, improving their performance and productivity

Some employees may see the setting of targets as threatening. A manager might set targets that the subordinate considers unachievable

All employees within the organisation must be committed to the technique if it is to succeed and benefit the business

Modern businesses operate in a business environment that changes rapidly. Objectives can quickly become out of date.

There are a number of important factors which influence the day-to-day leadership approach used by managers

• Team working occurs when production is organised into substantial units of work.

• Team working is common within organisations

• Businesses may assemble teams to solve problems and propose new working methods

• A correct balance of people within the team is essential

Individuals must not only be multi-skilled, but their skills and personalities must blend together and be complimentary

Successful teams need people with drive and motivation, as well as people with administrative

skills to ensure all tasks are completed

Quality Circles: teams of employees drawn from all levels in the organisation to solve operational problems

It is important for leaders to make sure that teams are all pursuing the organisation’s objectives

Teams may become too competitive

Teams may become confident to their own success, an unaware of changes taking place out side the team. This may result in failure to meet targets

Team-based leadership may also require the implementation of single status into the workplace

This leads to the removal of all barriers distinguishing between different grades of staff within the organisation

Use the same canteen and other facilities

Work similar hours

Are entitled to similar holiday arrangements

Wear the same clothing

The only distinction remaining should be the level of pay received by various grades of employees

Important elements of an individuals style of leadership

Delegation: Managers give junior employees the

authority to carry out particular tasks

Consultation: occurs when managers ask for, and take into account, views of subordinates

Frees senior managers for other matters

May breed a sense of responsibility and help to motivate

Controlling subordinates is expensive and supervisors may be required

Individuals may develop skills and careers

Trusting subordinates can be risky and responsibility remains with the senior manager

Delegation may involve expensive training for subordinates

Once trust is given, it is impossible to remove it without loss of face

Some managers may be reluctant to use delegation as they have to relinquish control

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