Definitions include: Exerting influence on others Motivating and inspiring people Helping people realise their potential Setting a good example Encouraging people to achieve their goals David Cameron

LEADERSHIP: Motivating and inspiring people Innovators – encourage others to accept change Natural abilities and instincts Respected and trusted by followers MANAGEMENT Directing and monitoring others Problem solver Official position of responsibility Accepts and conforms to the ‘norms’ of the business

Autocratic Leaders take decisions own their own with no discussion Democratic Leaders discuss with workers before making decisions Paternalistic Leaders listen, explain issues and consult with the workforce but will not allow them to make the final decision

Bureaucratic Leaders use rigid complex rules and procedures to direct and lead the organisation Laissez -faire Leaders leave their colleagues to get on with their work so there is no supervisor or control

Theory X leaders believe: workers do not like work and will avoid it if possible, Need to be controlled and monitored, are motivated by money Theory Y leaders believe: workers do not dislike like work Will seek responsibility are motivated by other ways rather than control/threats Are capable of showing initiative

Internal: Skill level and experience of the team The work involved – routine or creative? Preferred natural style of the leader The time limit – i.e. quick decisions needed External: Economic environment rapid decision to secure business survival Nature and speed of change in the industry – technological change comes from workers who have scope for problem solving Legal changes – new laws such as Health & Safety, may need a directive approach There is no single right way to manage an organisation that suits all situations. A good manager can switch instinctively between styles.

Managing change: Setting new objectives that recognise the need for change Ensuring adequate resources Appropriate planning Leading change: Establishing a vision for the business and leading staff towards it Motivating staff at all levels so they are positive and less likely to resist change Put change at the centre of the culture of the organisation

Clear and effective leadership is essential to the success of business especially during periods of rapid change including redundancies and downsizing In successful business workers look to their leaders for : Clear vision and a sense of direction Support and commitment to their welfare Confident and effective decision making Effective planning Full communication In organisation with poor management employees expect nothing positive. There is a climate of mistrust. Managers are not respected or trusted. The organisation will have to deal with de-motivated employees as well as the changes necessary

‘ Good business leaders are born not trained’ To what extent do you agree with this view? 40 Marks ‘ During periods of rapid change the role of the leader – more even than a good manager becomes crucial to success’ Discuss this view 40 Marks

Business Leaders / Political Leaders? Meg Whitman Biography (Margaret Cushing Whitman) : Former eBay CEO Famous for : Being the CEO of eBay online auction website from 1998 through to 2007, then advised the next eBay chief executive officer John Donahoe through She plans to run for governor of California in 2010.

Business Leaders / football Pundits? Roman Abramovich Biography: Russian Businessman Famous for : Becoming a billionaire from oil and for purchasing the English Premiership football club Chelsea F.C. “I have no Napoleonic dream. I'm just hard-working and pragmatic.” (practical)

Business Leader / Arabian Prince? Prince Alwaleed (Prince Al-Walid bin Talal bin Abdul Aziz Al Saud) : Investor and Entrepreneur Famous for : Being one of the worlds richest people according to Forbes magazine and for being a member of the Saudi Royal Family. If I’m going to do something, I do it spectacularly or I don’t do it at all. Prince Alwaleed Bin Talal Alsaud - Nowadays, anyone who cannot speak English and is incapable of using the Internet is regarded as backward. Prince Alwaleed Bin Talal Alsaud - My wheels are running. My investments are local, regional and international. Prince Alwaleed Bin Talal Alsaud