Leaders vs. Managers “There is a profound difference between management and leadership, and both are important. To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading is influencing, guiding in a direction, course, action, opinion. The distinction is crucial.’ (Warren Bennis, a distinguished expert in the field of leadership styles.)

Management & Leadership Chapter 10 Management & Leadership

EQ: What are the traits of an effective manager and how does he or she lead others?

Learning Objectives Understand the main functions of managers Analyze the importance of good management to the success of a business Analyze the differences between McGregor's Theory X and Theory Y Recognize the key differences in management styles Evaluate the appropriateness of these styles to different business situations Understand the significance of informal leadership Analyze the four competencies of emotional intelligence.

Badly managed businesses Poorly organized Poor staff motivation Resources wasted or used inefficiently Lack long-term plans or objectives Lack direction and purpose

Key concept What is a Manager? A manager is a business professional that sets the objectives, organizes resources and motivates staff so that the organizations aims are met

Functions of management Managers’ responsibilities Key concept Functions of management Managers’ responsibilities Setting objectives and planning – thinking ahead and planning is a key component for any manager. Organizing Resources – ensuring you have enough staff and the right staff to achieve the organizations objectives. Directing and Motivating Staff – ensuring staff are on task and achieving set objectives.

Functions of management - Managers’ responsibilities Key concept Functions of management - Managers’ responsibilities Coordinating Activities – ensuring consistency and coordination between departments within a business. (reduces communication issues) Controlling and Measuring performance – ensuring that each department performs at the levels expected. (set out in corporate objectives) Provide positive feedback.

Mintzberg’s 3 Management Roles Key concept Mintzberg’s 3 Management Roles Henry Mintzberg (The Nature of Managerial Work, 1973) Identified 10 roles of managers Roles divided into 3 groups Interpersonal Roles Informational Roles Decisional Roles

Mintzberg’s 3 Management Roles Key concept Mintzberg’s 3 Management Roles #1 - Interpersonal Roles - Figurehead – Symbolic leader of organization i.e. Richard Branson (Virgin) - Leader – Motivating, selecting and training staff. - Liaison – Linking with managers from other branches and divisions.

Mintzberg’s 3 Management Roles Key concept Mintzberg’s 3 Management Roles #2 - Informational Roles - Monitor – collecting data relevant to business organization. - Disseminator – sending data collected to the relevant people within an organization. - Spokesperson – Communicating with media and other sources about the organization.

Mintzberg’s 3 Management Roles Key concept Mintzberg’s 3 Management Roles # 3 - Decisional Roles - Entrepreneur – The ideas person. - Disturbance Handler – Handling issues within a business and anything that will put a business at risk. - Resource Allocator – Deciding how the business spends its money and allocates physical and human resources. - Negotiator – representing the organization in important negotiations.

What makes a good leader? Key concept Leadership Leadership is a key part of being a successful manager Charismatic leaders set a clear direction & vision The best managers are good leaders Managers focusing too much on control of staff and resources Provides no sense of purpose or focus Fail to inspire workers to take a fresh direction What makes a good leader?

Leadership Characteristics Key concept Desire to succeed and have a natural self confidence Creativity - think outside the box Multi-talented understands all aspects of the business. Gets to the heart of the issue rather than wasting time on unnecessary details.

Leadership positions in Business Top executives – CEO, CFO, COO… Directors – elected by shareholders Managers – responsible for people, resources or decision-making Supervisors – appointed by management to watch over the work of others Worker representatives (Union Rep) – elected by the workers, to discuss areas of common concern with managers

Stop and think!!! By now you should be able to…… Identify and explain the key functions of management. Identify and explain Mintzberg’s roles of management Explain the importance of leadership. List and explain key leadership positions in business.

Ch. 10 Management & Leadership Do Now - 11/11/2018 Ch. 10 Management & Leadership Type a Response to the 2 questions on Edmodo.

Leadership Styles - Autocratic Key concept Main Features Drawbacks Possible applications Leader takes all decisions Gives little information to staff Supervises workers closely only one-way communication Workers given limited information about the business Demotivates staff who want to contribute and accept responsibility Decisions do not benefit from staff input Defense forces and police where quick decisions are needed and the scope for discussion must be limited Times of crisis when decisive action might be needed to limit damage to the business or danger to others Autocratic

Leadership Styles - Democratic Key concept Main Features Drawbacks Possible applications Participation encouraged Two-way communication used, which allows feedback from staff Workers given information about the business to allow full staff involvement Consultation with staff can be time-consuming On occasions, quick decision-making will be required Level of involvement – some issues might be too sensitive (e.g. job losses) or too secret (e.g. development of new products) Most likely to be used in businesses that expect workers to contribute fully to the production and decision-making processes An experienced and flexible workforce Situations that demand a new way of thinking or a new solution Autocratic

Leadership Styles - Paternalistic Key concept Main Features Drawbacks Possible applications Managers do what they think is best for the workers Some consultation might take place, but the final decisions are taken by the managers – there is no true participation in decision-making Managers want workers to be happy in their jobs Some workers will be dissatisfied with the apparent attempts to consult, while not having any real power of influence Used by managers who have a genuine concern for workers’ interests, but feel that ‘managers know best’ in the end When workers are young or inexperienced this might be an appropriate style Autocratic

Leadership Styles – Laissez-faire Key concept Main Features Drawbacks Possible applications Managers delegate virtually all authority and decision-making powers Very broad criteria or limits might be established for the staff to work within Workers may not appreciate the lack of structure and direction in their work – this could lead to a loss of security The lack of feedback – as managers will not be closely monitoring progress – may be demotivating When managers are too busy (or too lazy) to intervene May be appropriate in research institutions where experts are more likely to arrive at solutions when not constrained by narrow rules or management controls Autocratic

Key concept Views differ over the most appropriate leadership style for creating value in a business. Some managers believe that an autocratic style will encourage the workforce to work efficiently to create value. Other managers consider that a laissez-faire or democratic style is most appropriate to bring the best out of a workforce.

Activity 10.3 Autocratic, Democratic, Laissez-faire? Which style of leadership might be most appropriate in the following situations: Business is flooded and important inventory and company records have been damaged. Electronics company plans to establish a group to research into new types of batteries. The quality of output from a pipe manufacturing factory has declined and no one knows why. The production team have been asked to attend a meeting about the problem.

McGregor's Theory X and Theory Y Key concept McGregor's Theory X and Theory Y Douglas McGregor's research concluded that the style of leadership used by a manager is a direct response to there attitude towards there employees. Theory X managers believe their workers are lazy , dislike work and aren't prepared to accept responsibility because of this they need to be controlled and made to work. Theory Y managers believed staff enjoyed work, would be prepared to accept responsibility, were creative and took an active part in contributing ideas and solutions to work related problems.

Leadership Styles What is the best style of leadership? Because every business is different and every workforce is different there is no one right style and managers will sometimes switch between a few depending on the circumstance. Some factors that may influence leadership style will include the training and experience of the workforce, the amount of time available to make a decision, the attitude of managers and the importance of the issues under consideration.

Key concept Informal Leadership This is very common in the workplace, often there will be people within an organisation who other staff will follow despite not having any formal responsibility. This is a tricky situation for managers as they can’t exclude the employee as there opinion carries weight with the rest of the staff, and its hard to promote them because they are likely to lose there influence with the staff because of being seen as having gone to the dark side. Working alongside the informal leader to ensure business aims are met is crucial.

Emotional Intelligence Key concept The ability to understand your emotions and your staffs emotions to ensure a better business performance. This is a very new area of research but because business is a very people oriented environment the brightest person in academic terms may not be the best at managing staff where as someone with a higher EQ is likely to do a better job.

Emotional Intelligence Four main competencies for managers. Self Awareness – Having self confidence in our abilities. Self Management – Being able to manage our behaviour despite the situation. Social Awareness – ‘Reading’ people and taking there views into account, being able to relate to a wide range of individuals. Social Skills – Being able to use social skills to lead and motivate staff, and interpreting social interactions correctly.

Stop and think!!! By now you should be able to…… Identi

Key Terms Manager (p. 126) Leadership (p.126) Autocratic leadership (p.128) Democratic leadership (p. 129) Paternalistic leadership (p. 130) Laissez-faire leadership (p. 130) Informal leader (p. 133) Emotional intelligence (EI) (p. 133)