Leadership and Management Styles

Rachael Graham 13k

 What is the difference between
leadership and management?

 Management  Leadership

This is the process of setting

objectives and making the
most efficient use of
financial, human and
physical resources to
achieve these objectives.
Key tasks include planning,
control and co-ordination.
Influencing others to
achieve certain aims or
objectives. Effective
leadership skills can
help a manager to carry
out their duties
What do Leaders do?
• Decide upon objectives
for the organisation
• Provide expertise and
set standards fort the
organisation
• Decide upon company
structure and shape the
culture of the business
What makes a good leader?

 A good leader will be informed and knowledgeable

about matters relating to the business
 A good leader should be self-motivated and desire to
achieve great things
 A good leader should possess an air for authority
 A good leader would have the ability to think
creatively and to solve problems
Styles of Leadership…

There are three basic categories of leadership

style…
 Autocratic or authoritarian leadership
 Paternalistic leadership
 Democratic leadership
Authoritarian or Autocratic Leadership

Such leaders would have considerable sympathy with

the views expressed by Taylor.
Such leaders…
• Take decisions with little involvement of junior
employees
• Allocate tasks
• Set objectives
• Will contain total control throughout
Authoritarian Ctd…

 Such leaders, use a one-way communication

system, downwards from leader to
subordinate.
 This style of leadership may be appropriate
when quick decisions are required, or when
large numbers of un-skilled employees are
involved.
 Paternalistic Leadership

This is a leadership style which is quite

dictatorial, yet decisions are taken in the best
interests of the employees.
This style’s key features include…
• This form of leadership explains decisions
• It also ensures employees’ social and leisure
needs are met.
Democratic Leadership

This form of leadership involves running a

business on the basis on the majority of
decisions.
This methods main features include…
 This form of leadership encourages
employees to take part in decision-making
 This method also uses delegation
Democratic Leadership Ctd…

There is a two-way communication between senior and junior

employees.

• Bill Gates was a man, famous for his democratic management

style at Microsoft.
• He has actively involved employees in key management and
strategic decisions.
• Most of his time is devoted to meeting with customers and
staying in contact with Microsoft employees around the world
via e-mail.
Douglas McGregor’s
Theory X and Y

o In 1964, Douglas published ‘The Human Side of

Enterprise.’
o This book is famous for discovering how leaders’
attitudes may influence their behaviour.
o The book is noted for its comparison of two types
of leader that McGregor called ‘TheoryX’ and
‘TheoryY’ leaders.
Theory X Leaders Believe…

 The average employee dislike work and will avoid it if

at all possible
 People must be controlled and directed and
punished, if necessary, to put in a real effort at work
 The typical worker wants to avoid responsibility and
has little ambition
 Employees look for security above all else at work
Theory Y Leaders Believe…
• Working is as natural as play or rest for the average
employee
• The typical worker does not have an in-built dislike
for work
• Other means exist to motivate workers rather than
control and punishment
• In the right circumstances, workers seek
responsibility
• Most employees have imagination and creativity that
may be used to help organisations achieve their
goals
Management by Objectives

 Peter Drucker published ‘The Practice of

Management,’ which included his theory of
Management by Objectives.
Drucker’s theory of Management

According to Drucker’s theory of management,

managers should;
 Identify and agree targets for achievement
with sub-ordinates
 Negotiate the support that will be required to
achieve these targets
 Evaluate over time the extent to which these
objectives are met
Advantages of MBO

 It can improve the communication within the

organisation as the target-setting and evaluation
process takes place
 Employees may be motivated by understanding what
they are trying to achieve, and how it helps the
business achieve its overall goal.
 MBO can highlight training needs for managers and
sub-ordinates, improving their performance and
productivity
Disadvantages of MBO

 Some employees may see the setting of targets as

threatening. A manager might set targets that the
subordinate considers unachievable
 All employees within the organisation must be
committed to the technique if it is to succeed and
benefit the business
 Modern businesses operate in a business
environment that changes rapidly. Objectives can
quickly become out of date.
Issues in Leadership

There are a number of

important factors
which influence the
day-to-day
leadership approach
used by managers
Team-based leadership

• Teamworking occurs when production is organised

into substantial units of work.
• Teamworking is common within organisations and
often companies delayering
• Businesses may assemble teams to solve problems
and propose new working methods
• A correct balance of people within the team is
essential
Team-based leadership

 Individuals must not only be multi-skilled, but their

skills and personalities must blend together and be
complimentary
 Successful teams need people with drive and
motivation, as well as people with administrative
skills to ensure all tasks are completed
Quality Circles: teams of employees drawn from all levels in
the organisation to solve operational problems
Problems with teams

 It is important for leaders to make sure that teams

are all pursuing the organisation’s objectives
 Teams may become too competitive
 Teams may become confident to their own success,
an unaware of changes taking place out side the
team. This may result in failure to meet targets
Single Status

 Team-based leadership may also require the

implementation of single status into the
workplace
 This leads to the removal of all barriers
distinguishing between different grades of
staff within the organisation
Under single status all employees
within an organisation…

 Use the same canteen and other facilities

 Work similar hours
 Are entitled to similar holiday arrangements
 Wear the same clothing

The only distinction remaining should be the level of

pay received by various grades of employees
Delegation and Consultation

Important elements of an individuals style of

leadership

Delegation: Managers give junior employees

the authority to carry out particular tasks

Consultation: occurs when managers ask for,

and take into account, views of subordinates
Advantages of Delegation

 Frees senior managers for other matters

 May breed a sense of responsibility and help
to motivate
 Controlling subordinates is expensive and
supervisors may be required
 Individuals may develop skills and careers
Disadvantages of Delegation

 Trusting subordinates can be risky and responsibility

remains with the senior manager
 Delegation may involve expensive training for
subordinates
 Once trust is given, it is impossible to remove it
without loss of face
 Some managers may be reluctant to use delegation
as they have to relinquish control