1. Definition – Influencing and directing the performance of group members towards achieving the goals of the business Leadership

2. Effective Leadership Effective leaders have the ability to : Communicate effectively Listen – two way process Think critically – problem solving Self motivate and be determined to succeed – and motivate others to do so.

3. Leadership Styles Autocratic Democratic Paternalistic Laissez Faire See Handout

4. McGregor's Theory X & Y McGregor examined how managers view their subordinates. His work helps to inform us how different types of managers and leaders might set about motivating employees. In investigating the attitudes held by managers towards their employees, McGregor discovered that the different views held by managers placed them into two broad categories. He memorably labelled these categories Theory X managers and Theory Y managers.

5. McGregor argued that Theory X managers would carry out their work based on the belief that: The average employee dislikes work and will avoid it if he or she can. Unsupervised employees will not perform efficiently. Employees are motivated by money. The average person prefers to be told what to do, and want to avoid responsibility. Employees are not ambitious.

6. In contrast, managers with Theory Y beliefs and attitudes make entirely different assumptions about their employees. These are: Effort in work is as natural as work and play. Employees are able to work efficiently without constant supervision. Commitment to objectives is a function of rewards associated with their achievement. Employees usually accept and often seek responsibility. Most employees possess ingenuity and creativity, and they want to use these skills in their work. Employees seek satisfaction from work and not merely financial reward.