BUSS 4: Managing Change Organisations operate in a changing environment and change creates opportunities and threats. Candidates should understand how businesses plan for and manage change, and how external and internal change is linked. Specification section Key Influences on the Change Process: Leadership Contents The meaning of leadership The range of leadership styles Assessing internal and external factors influencing leadership style The role of leadership in managing change Assessing the importance of leadership Amplification Candidates should consider the difference between the roles of leaders and managers.

Jan 2010 What we are working towards… #exciting #40markers #challenge

Topical discussion time! In your opinion are leadership and management the same thing?

What's the difference between LEADERSHIP & MANAGEMENT?  Management – getting things done by organising others  Transactional relationship  Leadership- all about change....encouraging & inspiring others  leaders have followers  transformational benefits Transformational vs transactional?

Stretch & Challenge: What's your opinion? “Leadership is doing the right thing and management is doing things right…” A04

What AQAs say... Managers- tend to come from stable home backgrounds....have normal & comfortable lives....this leads them to be risk adverse... They can run a ‘happy ship’ – REALLY?... RULE MAKERS! Leaders- are risk seeking...they purse their vision- along the way; there are problems that must be overcome...they are comfortable with risk....see the routes that promise potential, opportunities & advantages...RULE BREAKERS!

Leaders discuss with workers after making decisions PaternalLeaders will listen, explain issues and consult with the workforce but will not allow them to take the final decision Decisions are made as a team – the leader listens to the workers Leaders leave their colleagues to get on with their work so there is no supervision or control Authoritarian Paternalistic Democratic Laissez-faire Leadership Styles

Management theory: McGregor’s Theory X & Theory Y Theory X  MAJORITY: Employees did NOT enjoy work, did NOT want to work... MONEY was the motivator. Authoritarian approach Theory Y  MINORITY: workers enjoyed work, wanted to get involved, got satisfaction from employment... Democratic approach  Describe a typical ‘THEORY X’ manager and a ‘THEORY Y’ manager.  Do these theories really transpire into the workplace?  Do you see the link to the motivational theories? Stretch & Challenge: Taylor Link Stretch & Challenge: Maslow & Herzberg link

Leadership - what is the best leadership style? It depends on the “situation”! Situational leadership: When it comes to effective leadership, what works in one business situation may not necessarily work in another. An autocratic leadership style might be appropriate for a business where quick and unpopular decision-making is required to turn the business around. That style might not be best for a high-performing, innovative firm reliant on maintaining good relations with creative employees. “I think a great leader is somebody who has situational awareness, contextual awareness, either is able to flex their style to the context or knows their style so well that they recognise when the time comes that its for them to move on somewhere else and find somewhere where the context is a better fit for them, for the kind of skills that they’ve got.” This is a classic “depends on” point which can be used by students to build their analysis and evaluation points in exam answers. What leadership style is best or most appropriate for a business situation…it depends on the situation. VIDEO

Factors that influence leadership style Internal factors Skills and experience The work involved The preferred or natural style of the leader The time limit

Factors that influence leadership style External factors Economic Environment Nature and speed of change in the industry Legal change

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June 11 Some analysts claim that the achievements of chief executives, such as Terry Leahy at Tesco and Philip Green at Arcadia, show the difference a leader can make to the performance of a business. To what extent do you think that a leader can make a significant difference to the long-term success of an organisation? Justify your answer with reference to Tesco, Arcadia and/or other businesses or leaders that you know. (40 marks)

Their traits that make them inspirational What they have achieved Any issues they have overcome Businesses they have led – did they start it or were they brought in as a leader? What impact have they had on individual businesses What leadership style do they have?

Leadership

Japanese leadership Vs United States: One of the most common is that Japanese and U.S. managers have a basically different philosophy of managing people. Stretch & Challenge: Deepen your understanding