Managing Change Key Influences on the Change Process: Leadership Guidelines for bureaucrats: (1) When in charge, ponder. (2) When in trouble, delegate. (3) When in doubt, mumble. James Boren Managing change is about leading change. Shona Brown All leadership, management or vision will become useless if it becomes static. Paul Corrigan BUSS4.9 Leadership

In this topic you will learn about: The meaning of leadership The range of leadership styles Assessing internal and external factors influencing leadership styles The role of leadership in managing change Assessing the importance of leadership BBC PM Winston Churchill's speech: 'Their finest hour' Youtube Henry V Speech to the troops Lean on Me Inspirational Speech Do they inspire you to achieve through leadership? BUSS4.9 Leadership

The Meaning of Leadership ‘The only definition of a leader is someone who has followers’ Peter Drucker (1909 – 2005) ‘Management is the art of achieving that certain things are done through people’ Mary Parker Follett Leadership is the ability to influence and direct people in order to meet the goals of a group. Management is the process through which company resources are used and decisions made in order to meet the objectives of the firm It is important to distinguish between leaders and managers. This is difficult to do. In essence, leaders are those people that can inspire and motivate people to meet objectives; managers will set objectives and decide how to go about achieving them. Often leaders and managers are one and the same person. Youtube Follow the Leader Leadership – the ability to inspire people to follow BUSS4.9 Leadership

The Range of Leadership Styles Kurt Lewin (1890 – 1947) put forward three different styles of leadership: Autocractic (Authoritarian) – the leader makes a decision without consultation e.g. In the army when quick decisions are required in battle Democratic – the leader consults his team but makes the final decision e.g. A skilled workforce where each team member can make strong contributions Laissez-Faire (to leave alone) – the leader allows his team to make decisions e.g. Experienced and competent staff given freedom to make decisions themselves To these we could add: Paternalistic – the leader acts in a fatherly way towards the workforce – making decisions based on the needs of the workforce as well as the business e.g. Often family or smaller organisations with a more caring style of leadership, Bureaucratic – leaders work to rules and regulations (‘by the book’) e.g. In bureaucratic organisations where the culture is very much led by the rules However, there are numerous other leadership styles. What is important is that the style of leadership is appropriate to the situation BUSS4.9 Leadership

The Range of Leadership Styles Tannenbaum and Schmidt’s Continuum Theory (1973) The Continuum Theory looks at 7 levels of delegation from 1 (no delegation) to 7 (highly delegated) Use of authority by the manager Area of freedom for subordinates 1 2 3 4 5 6 7 Manager takes and announces decisions Manager sells decision Manager presents decision with ideas and invites questions Manager suggests provisional decision and invites discussion Manager presents the situation, gets feedback and then decides Manager explains, defines parameters and asks team to decide Manager allows team to develop options and decide on action based within managers limits BUSS4.9 Leadership

The Range of Leadership Styles Blake and Mouton’s Country Club Management (1964) 1,9 9,9 1,1 9,1 1,9 Country Club Management 9,9 Team Management Concern for People 5,5 Organisation Man Management 9,1 Authority Obedience 1,1 Impoverished Management Concern for Production The grid shows five leadership styles with the first number showing the task orientation (Production) and the second the employee orientation (People) e.g 1,9 means low concern for production and high concern for people. BUSS4.9 Leadership

Factors that Influence Leadership Styles Internal Factors There are a number of internal factors that influence the style of leadership: The expertise and experience of the workforce The skills required for the work to be done The personal traits of the leader The power given to the leader The time frame associated with the task to be undertaken Brittas Empire The Brittas Empire Series 1 Episode 2 part 2 of 3 What traits would you look for in a leader? BUSS4.9 Leadership

Factors that Influence Leadership Styles External Factors There are a number of external factors that influence the style of leadership: The political and legal environment The economic environment The social environment The technological environment Changing nature of the industry Do leaders need to lead by example? BBC M&S Boss: I won't take a pay rise Marks and Spencer chief executive Sir Stuart Rose has said he will not take a pay rise this year after cutting 1,230 jobs at the chain. Discuss how each of the above external factors as studied from 4.2 to 4.6 might affect leadership styles BUSS4.9 Leadership

The Role of Leadership in Managing Change Change management requires strong leadership. There are numerous examples that candidates could use to provide examples of this. Setting clear objectives to drive the change Communicating with employees to gain commitment to change Allocation of sufficient resources to aid change Instilling a change culture You will learn more about culture in 4.10 and the role of project champions in 4.12 BUSS4.9 Leadership

Assessing the Importance of Leadership Effective leadership is at the heart of any organisation, whether it be a school/college or a FTSE 100 company. A company looks to its leaders for a number of reasons: Vision Support for the welfare of the workforce Provision of a clear sense of direction for the company Inspiration for the company A figure to give guidance and to be a mouthpiece to the external world BUSS4.9 Leadership

The Range of Leadership Styles Activity There are numerous theories regarding leadership – other theories include those of: Douglas McGregor – Theory X and Theory Y Managers Fred Fiedler – Contingency Model John Adair – Action Centred Leadership Look at the work of two theorists from the above and those that you have looked at in this Unit. Your task is to research a chief executive of one of the UK’s FTSE 100 firms. How do these leadership theories apply to your chosen leader? Write a short report (200 words) giving examples of leadership style and justifying your findings. http://www.thepracticeofleadership.net/2008/04/08/leaders-vs-managers-are-they-really-different/ Before attempting the essay on the next slide read this article on the difference between leaders and managers. BUSS4.9 Leadership

Essay Warren Bennis, a distinguished expert in the field of leadership styles states "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“ With reference to businesses you have studied to what extent do you believe that leadership, rather than management, is key to success when managing change. BUSS4.9 Leadership