head for success business studies – grade 12. term 2 topic 5: management and leadership

HEAD FOR SUCCESSBUSINESS STUDIES – GRADE 12

TERM 2TOPIC 5: MANAGEMENT AND LEADERSHIP

MANAGEMENT AND LEADERSHIP

INLEIDING:

• Dynamic leadership increases a business’ chances of success.

• Dynamic leadership is part of management.

• Managers can display management characteristics, but lack leadership qualities.

• It is possible for managers to learn how to be dynamic leaders.

• Although there is a distinction between a manager and a leader, managers are often leaders.


THE DIFFERENCE BETWEEN LEADERSHIP AND MANAGEMENT:


THE DIFFERENCE AND SIMILARITIES BETWEEN LEADERSHIP AND MANAGEMENT:

• Leadership and management are closely related.

• The biggest similarity between management and leadership is that both concepts involve having a person in an authoritarian position.

• Other similarities between good managers and leaders include:

• Good managers and good leaders are innovative.• Good managers and good leaders know how to delegate.• Good managers and good leaders are knowledgeable.• Good managers and good leaders are organised.• Good managers and good leaders are open to change.• Good managers and good leaders are clear communicators.

MANAGEMENT AND LEADERSHIPTHE DIFFERENCE AND SIMILARITIES BETWEEN

LEADERSHIP AND MANAGEMENT:• The similarities between leaders and managers are probably more than the

differences, and even though management and leadership are very similar concepts, they are not exactly the same thing.

• The differences between management and leadership include:Management Leadership

Definition

• Management plans, controls, leads and organises the resources in a business.

• Leadership is about inspiring, motivating and encouraging a team to achieve its goals.

• Based on a position on a hierarchy. • Based on a person’s nature and personality.

• Rely on their position to obtain cooperation of employees.

• Leaders do not need a managerial position to exercise leadership qualities.

• Focused on tasks. • Focused on people.

• Responsible for ensuring that performance targets are met.

• Often take the initiative to set new targets.

• Managers help employees to get a job done.

• Leaders help people to reach their potential.

MANAGEMENT AND LEADERSHIPTHE DIFFERENCE AND SIMILARITIES BETWEEN

LEADERSHIP AND MANAGEMENT:

• The differences between management and leadership include:

Management LeadershipAppointed / elected

• Managers are appointed. • Leaders are elected.

• Good managers are skilled, experienced and knowledgeable.

• Good leaders are inspirational.

MANAGEMENT AND LEADERSHIPOTHER DIFFERENCES LEADERSHIP AND MANAGEMENT:

Management Leadership

• A manager has authority because of the office he/she holds and uses the power to expect form people to carry out tasks and activities.

• Has the vision to make the business more successful by creating a vision of change, to determine direction for the business and inspire others to follow.

• Control people through the setting of rules and procedures and to enforce it to reach the company’s goals.

• Communicate goals and use personal characteristics (focus on interpersonal aspects) to support people, to empower and motivate them to perform well to get good results.

• Management is administrative in nature and the manager is task oriented by creating structures, allocate and organise resources to carry out the functions of the business.

• A leader’s task and person oriented. Empower people by providing opportunities for them and inspire people to be achievers.

MANAGEMENT AND LEADERSHIPOTHER DIFFERENCES LEADERSHIP AND MANAGEMENT:

Management Leadership

• A good manager must possess certain qualities and/or skills, for example: good human relations, knowledge of the workings of the various departments of the business, good management style. etc.

• Some characteristics of a good leader: adaptable, perseverance, creativity, can convince people, good human relation skills, take a stand, confidence, self-discipline, etc.

• A manager has power by virtue of his/her position of authority that he/she are assigned to. People follow the manager because of the position he/she occupies in the business.

• A leader has power by virtue of his/her knowledge, skills and expertise. People follow a leader out of own choice.

Functions of management: Functions of leadership:

• Use by different managers at different management levels.

• Businesses need two types of leaders, namely:

Top level: Make strategic decisions Middle level: Make tactical decisions Lower level: Take operational decisions

Strategic leaders: determined the future of the business.

Operational leaders: implement the vision (let the dream come true)



• Management is responsible for performing the following management tasks:

Planning • The process of setting goals and making plans to achieve those goals.

• Planning is done by managers on all three levels of management.

Organising • Refers to the way in which employees in an enterprise are arranged in order to carry out plans, responsibilities and duties.

• Describes what tasks employees are responsible for, who employees must report to and from whom orders must be taken.

Activating • Means to start doing the work that will enable an enterprise to achieve its goals.

Leading • Means to guide employees through their duties and responsibilities.

• Involves inspiring employees to achieve the business’ goals.



• Management is responsible for performing the following management tasks:Directing

• Ensuring that a business runs smoothly.• Involves establishing a productive working climate, supervising and

ensuring that effective communication channels are in place.Controlling

• Ensuring that tasks are carried out as planned.• Involves comparing actual results with the goals set by management/• Corrective measures are taken if there is a difference between actual

results and the goals that the business set out to achieve.Risk

management

• Even though risk management is not classified as a traditional management task, it remains an important management responsibility.

• Involves identifying risks and finding strategies to deal with risks.• The following steps are involved: Identify threats/risks from all the business environments. Determine the extent to which the business is exposed to these threats. Evaluate the risk. Control the risk by minimising losses. Finance the risk by working possible losses into the budget.


LEADERSHIP STYLES:

• People have different types of personalities and leaders have different leadership styles.

• Good leaders are capable of adapting their leadership style to suit their followers and the situation, because:• Each situation is different• Each group of followers is different• People have different personalities• Good leadership is about guiding people through change –

leaders must also be adaptable.


EXAMPLES OF DIFFERENT LEADERSHIP STYLES INCLUDE:

Democratic leadership style

Autocratic leadership style

Laizzes-faire /free leadership style

Definition

• A leadership style which involves all employees in the decision making process.

• Also known as the participative leadership style.

• A leadership style in which the leader makes all the decisions.

• The leader remains in control and rarely accepts advice from followers.

• Also known as boss-centered leadership

• A leadership style in which the leader allows followers to make decisions.

• This non-authoritarian approach is also known as free reign leadership.

Democratic leadership style Autocratic leadership style

Laizzes-faire / free leadership style

Characteristics

• The leader involves employees in the decision making process.

• The leader does not allow for any negotiations.

• The leader allows employees to make decisions.

• The leader remains responsible for making decisions.

• The leader makes the decisions by telling employees what he/she wants done and how he/she wants it done.

• The leader remains responsible for the decisions that are made.

• Task oriented, but gives consideration to employee’s feelings and opinions.

• Strictly task orientated. • Employee orientated.

• Values the opinion of the employees, but remains committed to the task.

• Not concerned about the opinions of employees.

• Places a high value on the opinions of employees.

• Handles conflict situations by involving subordinates in finding the best solution.

• Handles conflict situations by telling subordinates what they should do.

• Handles conflict by allowing subordinates to find their own solutions to problems.

• Assumes that people are more committed to tasks when they have been involved in the decision making process and when they are working towards common goals.

• Gives instructions to employees without involving them in the decision making process

• Provides employees with very little direction and allows teams to complete tasks on their own.



Democratic

leadership styleAutocratic

leadership styleLaizzes-faire /

free leadership style

Application

• Suitable when cooperation is required between a leader and a team.

• Suitable when decisions need to be looked at from several perspectives.

• Suitable when employees are unsure about a task and need instruction.

• Suitable when new policies are implemented.

• Suitable in crisis situations.

• Suitable when urgent decisions must be made.

• Suitable when employees are highly experienced and know more about a task than the leader.

• Suitable when a leader wants to empower followers.


EXAMPLES OF DIFFERENT LEADERSHIP STYLES INCLUDE :

Bureaucratic leadership style:• Bureaucracy involves administration through enforcing excessive and

often unnecessary rules.

• Bureaucratic leaders are rigid rule followers.

• Bureaucratic leaders expect followers to follow and respect rules.

• This leadership style is more effective when followers are on the lower levels of a business.

• It cannot work where leaders have to be creative.

• The bureaucratic leadership style is best applied where rules need to be followed rigorously, for example, when employees need to carry out safety procedures.

• Suitable for routine work or in work situations where health and safety is a priority, e.g. in factories where workers work with dangerous machinery or toxic materials.



Charismatic leadership:• Charismatic leaders draw followers with charm and personality.• Charismatic leaders instil confidence and trust in followers.• Charismatic leaders convince other people to believe in their

visions.• Charismatic leaders are not discouraged by difficult challenges.• Most suitable for situations where employee morale needs a

boost.• Very useful to implement change because of their ability to

motivate and inspire followers.



Transactional leadership theory:• Assumes that followers are driven by punishment and reward.• Punishment and reward is always linked to the task at hand.• Group members who fail to make a meaningful contribution are

punished, while group members who made meaningful contributions are rewarded.

• This leadership style may lead to followers being scared to try new things, because they are scared of failing.

• This leadership style may also lead to low morale among group members.


ADVANTAGES AND DISADVANTAGES OF LEADERSHIP STYLES:

DEMOCRATIC LEADERSHIP STYLE:

ADVANTAGES DISADVANTAGES

Employees are involved in the decision making process and be empowered

Wrong decisions can be taken if the employees are inexperienced.

Employees bring a variety of inputs and skills into the process.

The discussion of issues is time consuming.

A greater variety of ideas encourage innovation.

Not suitable for crisis situations.



AUTOCRATIC LEADERSHIP STYLE:


Especially suitable when quick decisions are needed.

Causes a gap between the leader and the employees.

Work in large businesses where it is not possible to consult with everyone.

Lack of motivation and productivity of employees because two-way communication is not applied.

Good styles for leaders with employees who have few skills.

Top-down approach that can be experienced as negative and creates disrespect.

Good for crisis situations. Very little input form other stakeholders.



LAISSEZ-FAIRE LEADERSHIP STYLE:


Because employees make decisions they feel empowered and motivated.

Wrong decision especially when staff is inexperienced.

Employees bring a variety of inputs and skills into the process.

When the staff lost their focus and direction it can hamper the achievement of goals.

Time consuming.



BUROCRATIC LEADERSHIP STYLE:


Employees know exactly what is expected of them because they have detailed instructions.

Do not encourage creativity, teamwork or renewal at all.



The following example shows how the different leadership styles can be applied:◦ An autocratic approach works well to tell employees that

a strategy is not working and that a new strategy must be devised.

◦ A democratic approach works well to ask employees for their ideas to devise a new strategy.

◦ A laizzes-fair approach works well when experts are allowed to implement a new strategy under the care of a leader.


THEORIES OF MANANAGEMENT AND LEADERSHIP:

Leaders and followers:• The relationship between a leader and followers influences team

performance.• Leaders aim to inspire, motivate and encourage a team of

followers to achieve their goals.• Leaders cannot inspire, motivate or encourage without followers.• Each follower in a group has a different attitude.



Leaders and followers:• Let’s take a look at the attitudes of good and bad followers.

Good followers Bad followers

• Are willing to work as a team.• Look out for team members.• Listen to what is expected of

them.• Accept responsibility when

something doesn’t work out.

• Just trail along – depend on leaders and other followers to pull them through a task.

• Only concerned about themselves.• Think that they don’t have to listen to advice

or instructions, because other people are listening.

• Often blame other people.



Leaders and followers:• Teams can achieve great results when there is a sense of understanding

between the leader and the team of followers.

• The table below mentions a few common frustrations experienced by followers, as well as positive behaviour from leaders that can change the attitudes of followers.

Followers Leaders

Followers are unwilling to work.

• Lead by example.• Reward positive behaviour.

Team members do not get along.

• Engage in team building activities.• Reward positive group behaviour.

The group has insufficient resources at their disposal.

• Motivate employees to devise alternative strategies.• Find more efficient ways to use available resources.



Situational leadership (Hersey and Blanchard):• According to this theory, there is no single best way to lead.

• Different leadership qualities will be effective in different situations, but the same leadership quality will not work in every situation.

• The situational leadership theory is based on two pillars:

• Leadership style

• Maturity level of a team or group

• The maturity level of the team refers to factors like willingness to take responsibility for a task, willingness to work hard and a team’s experience



Situational leadership (Hersey and Blanchard):• Hersey and Blanchard found that even though successful leaders

are task oriented, they can adapt their leadership style to the maturity level of a team/group.

• Hersey and Blanchard identified four maturity levels:• Unable and insecure.

• Unable but willing.

• Capable but insecure.

• Capable and willing.



Situational leadership (Hersey and Blanchard):• This theory suggests that a leader adapts his/her approach to the

maturity level of the group.

• A group that is unwilling and unable will need a more autocratic approach, while a capable and confident group will probably respond best to a free reign approach.



Transitional and transformational leadership:• The word transformation refers to a drastic change, while transition

refers to the process of changing.

• Hence, transformational leaders guide followers through change.

• Transformational leaders often identify a need for change, inspire a team to commit to the change and then guide the team through the transition, by inspiring and motivating them.

• Transformational leaders aim to reduce or remove doubt and resistance.

• This type of leader handles conflict by motivating subordinates to focus on their goals by looking at the greater scheme of things.

• Former President Nelson Mandela is an example of a transformational leader – he led South Africa through transition in the nineties.



Super leadership theory:• A leadership approach that develops followers into leaders.

• Super leaders look beyond the task at hand and focus on a greater issue – turning followers into leaders.

• A business that adopts this approach is unlikely to experience leadership issues, as leaders are constantly being developed.

• Employees will ultimately be able to manage themselves.

• Self-management refers to the application of strategies and skills to take responsibility for oneself – hence, each employee will direct him-/herself towards achieving the business’ goals.



Servant leadership theory:• Servant leaders lead by making sure the needs of followers are catered

for.

• Servant leaders have high regard for the well-being of followers.

• Servant leaders must guard exploitation by overly needy followers.

• Groups lead by servant leaders often display positive attitudes and high morale.

• This leadership style is most suitable when the task at hand require much extra input from the team, for example, when a team has to work overtime for long periods of time.

• This leadership style is not suitable when decisions need to be taken quickly.


THE ROLE OF PERSONAL ATTITUDE IN SUCCESS AND LEADERSHIP:

• Attitude refers to the way a person looks at life.

• Your attitude is a choice which can either limit you, or it can empower you.

The role of personal attitude in success:

• In order to be successful, one needs to work hard.

• However, hard work may not be enough to guarantee success.

• One also needs to have a positive attitude towards one’s career.

• One’s attitude is reflected in one’s work, for example laid back or enthusiastic.




There are different work attitudes, including:

Politeness • Displaying good manners at work is an example of a good working attitude.

Modesty • Be respectful towards people in the office, irrespective of their position.

Punctuality • Be punctual for all appointments.• This shows that you have respect for other people’s time.

Friendliness • Be kind to colleagues.• Never be rude to anyone, even if you feel it is deserved.

Hard work • People who achieve success, work hard.• They are eager to accept a challenge.

Optimism • It is frustrating to work with a person who always sees the negative side of life or work.

• Optimistic people help to create a pleasant work atmosphere and are easier to get along with.




• A positive attitude towards one’s work will result in positive work behaviour.

• Examples of positive work behaviour include:• Sharing ideas that benefit the business.

• Getting out of your comfort zone by accepting new challenges.

• Dressing appropriately.

• Using appropriate language.

• Learning to work independently.

• Showing interest in the enterprise’s initiatives.

• Showing integrity.



The role of personal attitude in success:• True professionals control their attitude.

• Employees with bad attitudes tend to exhibit the following traits:

• They are difficult to work with.

• They tend to have a negative influence on other employees.

• They spend more time on a problem than they do on finding a solution.


THE ROLE OF PERSONAL ATTITUDE IN SUCCESS AND LEADERSHIP: The role of personal attitude in leadership:

• A leader’s attitude – good or bad – can influence the success of a business enterprise.

• Attitude refers to the way in which one sees life.• A person’s attitude reflects in your behaviour• Attitude reflects leadership – leaders understand that a positive attitude will set

the right atmosphere which encourages positive responses from others.• Teams tend to adopt their attitude form their leader.• If team members are acting negatively, or exhibiting low morale, it may be that

the team leader’s attitude is influencing their thoughts and behaviour.• Leaders should lead by example – this means that leaders should model the

behaviour they want to see in their team members.• Good leaders understand that the attitude of the group determines the success

of the group.• It is very often difficult to change a person’s attitude, because people with a

negative attitude is often negative about a lot of things. .

.



The role of personal attitude in leadership:

Leaders can influence followers’ attitudes through the following behaviour:

◦ Leaders should always be excited about the task at hand.◦ Leaders should persevere, even if there are challenges.◦ Leaders should be willing to do the tasks nobody else is keen to do.

Examples of positive leadership attitudes include:◦ Leaders with positive attitudes inspire followers.◦ Leaders with positive attitudes empower followers.◦ Leaders with positive attitudes share their knowledge with followers.◦ Leaders with positive attitudes trust their followers.

head for success business studies – grade 12. term 2 topic 5: management and leadership

Documents

leadership slide

good managers

good leaders

differences leadership

dynamic leadership

leadership inleiding

management characteristics

good result