IB Business and Management

2.4 Leadership and Management (HL)

Trait and Situation Theories

• Situational leadership theory presumes that different styles of leadership will be better in different situations. This implies that leaders need to be flexible enough to adapt their leadership to changing situations.

• Trait theory argues that some individuals are born with traits (personal characteristics) that make them natural leaders. However, these traits will vary from person to person and there is no one particular trait, which on its own, will make a successful leader.

In Leadership in Organisations (1997), Gary Yuki

suggests that successful leaders need to have the following traits:• dominance (the desire to influence and lead others)• adaptability - able to adapt to different situations

easily• energetic• persistence - the will to carry things through and

complete them• assertiveness - the ability to assert your will onto

others• reliability and dependability• ambition• self-confident and tolerant to high levels of stress

Task

• Different researchers and writers on leadership always come up with different lists of the key qualities of leaders.

• Write your own list of the most important qualities of leaders (Max 10)

Contingency approach to leadership (Fred Fiedler 1967)

• Fiedler is credited with helping move researchers from concentrating on the traits of leaders to studying leadership styles and behaviours.

• He said that appropriate leadership style in any situation is dependent, or contingent upon elements unique to that situation.

What Fiedler said……

Fiedler suggested that the appropriate leadership style is contingent upon three main factors:• The characteristics of the leader - whether

they are predominantly relationship-driven or task-driven

• The situation - the nature of the task such as its difficulty and changeability

• The nature of the subordinates - the authority the leader has over them and the level of mutual respect that exists

BLAKE AND MOUTON

Blake and Mouton’s Model

• The Managerial Grid is based on two behavioral dimensions:

• Concern for People – This is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task.

• Concern for Production – This is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task.

Blake Mouton Managerial GridPeople or Task focused

1:9 Country club management maximum concern for people, minimal concern for product, ‘friendly’ manager, lower productivity, conflict ignored

1:1 Impoverished mimimal concern for people and product, laissez faire, little effort or involvement

9:1 Authority Obedience management/Produce or Perish minimum concern for people, purely task focused, people ‘a number’, autocratic, maximum control

9:9 Team Management ‘ideal’ style, maximum concern for people and product, leader gets involved with the people

5:5 Middle of the Road a balance of people/product focus, some control but not too much, can fail when high productivity is important

Blake’s Grid

Categorise some teachers in terms of Blake’s grid

LIKERT

Likert's Leadership Styles

AutocraticDemocraticExploitive

authoritative Benevolent authoritative

Consultative Participative

Task

• Watch the video to show examples of Likert’s 4 leadership styles.

• Can you think of any other examples?

Likert's Leadership Styles

1. Exploitive authoritative- the leader has a low concern for people - uses fear-based methods such as threats to achieve conformance

-Communication is almost entirely one-way

2. Benevolent authoritative- the leader has some concern for people - the leader now uses rewards to encourage

appropriate performance - listens more to concerns of subordinates- most major decisions are still made by the leader.

Likert's Leadership Styles

3. Consultative- the leader is making genuine efforts

to listen to the ideas of subordinates. - major decisions are still largely

made by the leader.

4. Participative- the leader makes maximum use of

including subordinates in decision-making.

TANNENBAUM AND SCHMIDT

Tannenbaum SchmidtContinuum of Leadership

KEY FUNCTIONS OF MANAGEMENT

What is the difference between Leadership and Management?

• Discuss your ideas

What does managing involve?What does leadership involve?

Watch the video clip and see if this helps

Functions of Management

• This refers to the responsibilities and tasks carried out by managers:

• Set objectives • Organise how things are to be done• Command, co-ordinate and

communicate with others• Develop and motivate employees• Measure and evaluate

performance against objectives

Characteristics of good managers

• A vision and sense of direction as to where the business should be going

• Innovation and the creation of new ways of doing things

• Dedication and commitment• Ability, self-belief and qualities

that promote support from others.

HENRI FAYOL

Henri Fayol

• French management theorist

• Wrote during the early 20th century

• Identified the key tasks of management regardless of their function

5 Functions of Management

• to forecast and plan• to organize • to command or direct • to coordinate • to control

14 Principles of good Management• Division of work. This principle is the same as Adam Smith's

'division of labour'. • Authority. Managers must be able to give orders. • Discipline. Employees must obey and respect the rules that

govern the organization. • Unity of command. Every employee should receive orders

from only one superior.• Unity of direction. Each group of organisational activities

that have the same objective should be directed by one manager using one plan.

• Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.

• Remuneration. Workers must be paid a fair wage for their services.

14 Principles of good Management

• Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. The task is to find the optimum degree of centralisation for each situation.

• Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. Cross-communications can be allowed if agreed to by all parties and superiors are kept informed.

• Order. People and materials should be in the right place at the right time.

• Equity. Managers should be kind and fair to their subordinates.

• Stability of tenure of personnel. High employee turnover is inefficient.

• Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort.

• Esprit de corps. Promoting team spirit will build harmony and unity within the organization.

CHARLES HANDY

Charles Handy (b. 1932)

• Renowned for being one of Britain’s greatest management gurus

• Responsible for the ‘wonderful’ Shamrock organisation theory

What Charles Handy Says…Key Characteristics of Managers

• Intelligence• Initiative• Self-assurance

Key Roles of Managers• General Practitioners• Confronters of

dilemmas• Balancers of cultures

Good managers require the ‘helicopter factor’ and should not ‘micro-manage’ What does this mean?

PETER DRUCKER

Peter Drucker

• Peter Drucker is one of the most influential writers on management.

• Drucker saw people as a resource, not a cost, and believed that the workforce should be empowered to create better motivation and customer satisfaction.

• He published 33 management books during his working life.

Managers must be able to….

• manage by objectives • allow risk taking at all levels of the organisation• make strategic decisions and organise tasks and people• build teams and measure performance against

organisational objectives• communicate information quickly and clearly and

motivate employees to gain participation and commitment

• see the business as a whole and integrate his or her function within it

• to relate the product and industry to the external environment and see economic, political and social developments on a global scale

Management by Objectives

• Management by Objectives (MBO) refers to the process of managers and employees agreeing on objectives for the organisation

• Drucker urged that targets should be agreed after discussion, not imposed from above.

• This ensures employees understand and are committed to the organisation's objectives.

MBO Process