1. 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.)

2. Management & Leadership
Chapter 10
Management & Leadership

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

4. 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.

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

6. 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

7. 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.

8. 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.

9. 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

10. 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.

11. 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.

12. 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.

13. 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?

14. 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.

15. 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

16. 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.

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

18. 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

19. 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

20. 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

21. 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

22. 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.

23. 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.

24. 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.

25. 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.

26. 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.

27. 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.

28. 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.

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

30. 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)