Leadership and Management

Topic 1: The Practice of Management

BBM1 Lecture 2
10/25/2020
Lesson objectives

• Compare management and leadership

• Identify role of the manager
• What is a manager?
• What do managers do?
• How do managers do it?
• What is an effective manager?
• What do line/middle managers contribute?
• Explain the role of the leader
The significance of leadership
• The research found that leadership had a direct impact on
organizational climate, and that climate in turn accounted for nearly
one third of the financial results of organizations.

• The conclusion from research conducted by Professor Malcolm Higgs

(2006) was that leadership behaviour accounts for almost 50 per cent
of the difference between change success and failure.
Leadership theories
• 1. Contingent leadership: Fiedler (1967) states that the type of
leadership exercised depends to a large extent on the situation and
the ability of the leader to understand it and act accordingly. This is
sometimes called situational leadership.

• Fiedler wrote: ‘Leadership performance… depends as much on the

organization as on the leader’s own attributes.

• Performance of the group depends on leadership style and

the degree to which the situation provides the leader with the
opportunity to exert influence.
Leadership theories
●
task-orientated approach that focuses on
initiating
defi ning the task and
structure
how it should be carried out

●
a people-orientated approach where the emphasis
is on maintaining good relations through behaviour
consideration indicative of trust, respect and
warmth.
Leadership theories
• 2. The path-goal model: Robert House (1971) states that leaders are
there to define the path that should be followed by their team in order
to achieve its goals.

• It is the leader’s job to guide and help team members to select the
best paths towards achieving their own goals and those of the group.

• A leader’s behaviour is acceptable to subordinates when viewed

as a source of satisfaction, and it is motivational when need
satisfaction is contingent on performance, and the leader facilitates,
coaches and rewards effective performance.
Leadership theories
• Leaders have to engage in different types of leadership behaviour
depending on the nature and the demands of a particular situation.

• Path-goal theory identifies four leadership styles: achievement

oriented, directive, participative and supportive.
Leadership theories
• Leader-member exchange theory (LMX): Graen (1976) focuses on
the two-way relationship between supervisors and subordinates. It is
linked to social exchange theory, which explains social change and
stability as a process of negotiated exchanges between parties.

• Leaders usually have special relationships with an inner circle of

assistants and advisors, who often get high levels of responsibility and
access to resources. This is called the ‘in group’, and their position can
come with a price. These employees work harder, are more committed
to task objectives, and share more administrative duties.
Leadership theories
• 3 roles followed after joining the group

• Role-taking: The member joins the team and the leader evaluates their
abilities and talents. Based on this, the leader may offer opportunities

• Role-making: the leader and member take part in an unstructured and

informal negotiation whereby a role is created for the member and the
unspoken promise of benefit and power in return for dedication and
loyalty takes place.

• Routinization: a pattern of ongoing social exchange between the leader

and the member becomes established
The problem with the leadership concept
• Meindl et al (1985): unable to generate an understanding of
leadership that is both intellectually compelling and emotionally
satisfying. The concept of leadership remains elusive and enigmatic’.

• Keith Grint (2000): leadership is not accessible to scientific

approaches because it is essentially a constitutive process (ie leaders
shape and are shaped by the situation they are in)- focus should be
given to Art (It appears to have more to do with invention than
analysis).

• Producing one theory that covers all these variables is difficult.

Management and leadership
compared

10/25/2020
Distinctions between management and leadership
(Kotter, 1991)

10/25/2020
Distinctions between management and leadership
(Kotter, 1991)
 Influences on management

• The process of management is influenced by codes of practice

(professional, industrial and official). These codes provide guidance on
behaviour and the procedures to be followed. They usefully define
expectations

• 1. Professional codes of practice: behaviours expected of the members of

a profession. They are supported by disciplinary procedures

• 2. Industrial codes of practice: industrial codes of practice lay down

rules for how an industry should conduct its work.
 Influences on management

• 3. Official codes: issued by the government, government agencies or

bodies sponsored by the government

• 4. Procedures are formal statements of how particular issues should

be dealt with. They affect the way in which people handle certain
matters in organizations.

• 5. Legal requirements: Management takes place within a framework

of employment, health and safety, company, commercial and other
legislation.
 Influences on management

• 6. Organizational requirements and corporate governance:

Organizational requirements are expressed in the concept of
‘corporate governance’, which refers to the system by which
businesses are directed and controlled.

• Corporate governance is regulated by The Companies Acts, 1985 and

1989. A Combined Code on Corporate Governance was produced by
the Hampel Committee.