2.3 LEADERSHIP AND MANAGEMENT Angela, Nikita, Zakhar

Catalogue Introduction The function of management Mintzberg’s management roles The differences between management and leadership What makes a good leader? Leadership styles Effectiveness of leadership styles Ethical considerations and leadership styles Cultural considerations and leadership

Introduction Leadership involves setting a clear direction and vision for an organisation that others will be prepared to follow Employees will wants to follow a good leader and will respond positively to them A poor leader will fail to win over staff and will have problems communicating with the organising workers effectively Managers who focus on control of people and allocation of resources can fail to provide a sense of purpose or focus that others will understand and be prepared to follow

The function of management Setting objectives and planning Organising resources to meet the objectives Controlling and measuring performance against targets Coordinating activities Directing and motivating staff

The functions of management Setting objectives and planning: Senior management will establish overall strategic objectives and these will be translated into tactical objectives for the less senior managerial staff The planning needed to put these objectives into effect is also very important A new production or marketing objective will require the planning and preparation of sufficient resources

The functions of management Organising resources to meet the objectives: This is not just about giving instructions People throughout the business need to be carefully recruited and encouraged to take some authority and to accept some accountability via delegation Senior managers will ensure that the structure of the business allows for a clear division of tasks and that each section or department is organised to allow them to work towards the common objectives

The functions of management Directing and motivating staff： This involves guiding, leading and overseeing employees to ensure that organisational goals are met The significance of developing staff so that they are motivated to employ all of their abilities at work is now widely recognised This will make it more likely that organisational aims are achieved

The functions of management Coordinating activities: As the average size of business units increases, which is specially true for multinationals, so the need to ensure consistency and coordination between different parts of the organisation increases The goals of each branch, division, region and even all staff must be welded together to achieve a common sense of purpose At a practical level, this may mean avoiding the situation where two divisions of the same company spend money on research into the same new product, resulting in wasteful duplication of effort

The functions of management Controlling and measuring performance against targets: Management by objectives establishes targets for all groups, divisions and individuals It is management’s responsibility to appraise performance against targets and to take action if underperformance against targets and to take action if underperformance occurs It is just important to provide positive feedback when things are going right

Mintzberg’s management roles These are ten roles common to the work of all managers These are divided into 3 groups: Interpersonal roles – dealing with and motivating staff at all levels of the organisation Informational roles – acting as a source, receiver and transmitter of information Decisional roles – taking decisions and allocating resources to meet the organisation’s objectives

Mintzberg’s management roles (p163)

The differences between management and leadership Leadership: the art of motivating a group of people towards achieving a common objective It can be considered to be about aligning people to the vision of the business which means communication, motivation and inspiration Management: a set of processes that keep an organisation functioning The processes are about planning, budgeting, staffing, clarifying jobs, measuring performance and problem- solving when results did not go to plan

Key differences between leaders and managers Leadership Management Motivating and inspiring others Innovators who encourage others to accept change Stems from personal qualities or traits Natural abilities and instincts Believes in doing the right thing Respected and trusted by followers – they want to follow because of leader’s personality Creates and develops a culture of change Directing and monitoring others Problem-solvers Official position of responsibility in the organisation Skilled and qualified to perform role Believes in doing things right Listened to by others because of status – not necessarily because of personality Accepts and conforms to the ‘norms’ of organisation

What makes a good leader? Not all of the good leaders are gifted the talent of leadership Normal people can also be leader by training to adopt the key attributes of good leadership and accumulating life’s experiences on the quality of leadership Personal characteristics: A desire to succeed and natural self-confidence that they will succeed Ability to think beyond the obvious – to be creative – and to encourage others to do the same Multitalented enabling them to understand discussions about a wide range of issues affecting their business Incisive mind that enables the heart of an issue to be identified rather than unnecessary details

Leadership styles(p166) Autocratic leadership Paternalistic leadership Democratic leadership Laissez-faire leadership Situational leadership

Leadership styles Autocratic leaders: - Take decisions on their own with no discussion - Motivation levels - Supervision of staff will be essential - Orders may need to be issued quickly with immediate response - Applications: armed places and police

Leadership styles Democratic leaders: Engage in discussion with workers before taking decisions full participation in the decision-making process Higher expectations of working people’s experience from work The need to consult Threatening Doubts about their own ability from others

Leadership styles Laissez-faire leaders: Laissez-faire = ‘let them do it’ / allow workers to carry out tasks and take decisions themselves within very board limits An extreme version of democratic management Very little input from management Applications: research or design teams Limitation: lack of confidence & poor decisions never sure if what they are doing is ‘right’

Leadership styles Paternalistic leaders: Pay more attention to the social aspects of their employees Keep employees happy and motivate Act as a sort of ‘father figure’ to employees Feedback is invited, improving morale, but the final decisions are still taken by senior management Strengths: employee loyalty and motivation Limitation: lead to a sense of frustration when the employees’ feedback seems to have been ignored

Leadership styles Situational leaders: Adapt their style of leadership to the task or job that needs to be undertaken and the skills and experience of the group being led If the group contains workers who lack specific skills and are unable or unwilling to accept responsibility for the task, then a high level of directive leadership will be needed. If the workers are experienced and willing and able to perform a task and take responsibility for it, then a more participative or democratic style of leadership will be appropriate.

Effectiveness of leadership styles The training and experience of the workforce & the degree of responsibility that they are prepared to take on The amount of time available for consultation and participation The management culture & business background of the managers Personality of managers The importance of the issue

Ethical consideration & leadership styles

Cultural considerations and leadership

Thank you for listening!