1.
Read through notes and answer the questions in the term 2 work guide
CHAPTER 8
MANAGEMENT AND LEADERSHIP
TERMS AND DEFINITIONS
TERM DEFINITION
Leadership The ability of an individual or a group of individuals to influence and
Management Planning, organising, leading and controlling employees to achieve
Democratic leadership style The leader invites the team members/group to contribute ideas and
participate in the decision-making process.
Autocratic leadership style The leader takes decisions on his/her own without consulting staff.
Laissez fair/Free reign The leader delegates tasks to followers with little or no direction
Charismatic leadership style The leader uses charm to influence followers.
Transactional leadership style The leader focuses on motivating followers through a system of
reward and punishment.
Bureaucratic leadership style Leaders/managers make sure employees follow rules and policies.
Leaders and followers theory Focus on relationship between leader and follower.
Situational leadership theory Focus on the application of different leadership styles depending on
the situation and the maturity level of employees.
Transformational leadership The leader identifies the change needed/creates a vision to guide the
theory change through inspiration.
Personal attitude The manner in which the leader relates to his/her employees
determines the success or failure of a business.
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MANAGEMENT AND LEADERSHIP
1 Meaning of management and leadership
1.1 Meaning of management
The coordination of Planning, organising, leading and controlling employees
to achieve goals.
A person becomes a manager because of the position in which he/she is appointed
Managers have power because of the position of authority into which they
are appointed.
1.2 Meaning of leadership
The ability of an individual or a group of individuals to influence and guide
followers or other members of an organization
Leadership is an of inspiring subordinates to perform in order to achieve goals
It cannot be taught, although it may be learned as it is an inborn trait
Involves establishing a clear vision and sharing it with others so that they
can willingly follow
A leaders steps up in times of crisis and is able to think and act creatively in
difficult situations
1.3 Differences between leadership and management
LEADERSHIP MANAGEMENT
Influences human behaviour. Guides human behaviour.
Communicates by means of Communicates through management
interaction/behaviour/vision/values/ functions, e.g. line function.
charisma.
Innovates/Encourages new ideas to Administers plans/programs/tasks to reach
increase productivity. targets.
Inspires staff to trust and support each Controls systems and procedures to get the
another. job done.
Focuses on what and why. Focuses on how and when.
Focuses on the horizon/long term. Focuses on the bottom line/short/
medium/long term.
Leaders are born with natural/ instinctive A person becomes a manager because of
leadership skills. the position in which he/she is appointed.
Guides/Leads people to become active Manages the process of getting things done
participants. by exercising responsibility.
Leaders have power/influence because of Managers have power because of the
his/her knowledge/skills/ intelligence. position of authority into which they are
appointed.
Always trying to find more efficient ways of Enforce rules on subordinates/Ensure that
completing tasks. tasks are completed.
Motivational/Inspirational in their Instructional in their approach.
approach
People orientated. Task orientated.
Lead by example/trust/respect. Manage by planning/organising/
leading/control.
Does things right Does the right things
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2 Leadership styles
Democratic
Autocratic
Liassez-Faire/Free Reign
Charismatic
Transactional
NOTE: The explanation of EACH leadership style is embedded in
the advantages of each style below.
3 Situations in which each leadership style can be applied in the
workplace and the impact of each leadership style on businesses
3.1 Democratic leadership style
This leadership style can be applied when:
Group members are skilled and eager to share their ideas.
The leader does not have all the information needed to make a decision and
employees have valuable information to contribute.
Cooperation is needed between a leader and a team.
Decisions need to be looked at from several perspectives
Impact of the democratic leadership style on businesses
Positives/Advantages
The leader allows the employees to participate in the decision making process, so
they feel empowered/positive.
Staff gives a variety of ideas/inputs/feedback/viewpoints that can lead
to innovation/improved production methods/increased sales.
Clear/Two way communication ensures group commitment to final decision(s).
Authority is delegated which can motivate/inspire workers to be more productive.
Complex decisions can be made with inputs from specialists/skilled workers.
AND/OR
Negatives/Disadvantages
Incorrect decisions may be made if staff is inexperienced/not fully informed.
Decision making may be time consuming because stakeholders have to be consulted.
Employees may feel discouraged if their opinions/inputs are not considered.
Leaders can rely too much on the input of the followers and fail to make a final decision.
Not effective in times of crisis/when quick decisions need to be made.
Some employees only pretend to participate in decision making and their feedback
may not always be accurate.
3.2 Autocratic leadership style
This leadership style can be applied when:
In crisis situations, e.g. in the case of unforeseen challenges/accidents.
When all the information is available to solve the problem.
In a crisis/urgent situation, e.g. after an accident/meeting tight deadlines
When employees are motivated and the leader has already earned the trust of
the followers.
When dealing with employees who are not cooperative.
When employees are new/not fully trained.
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Impact of the autocratic leadership style on
businesses Positives/Advantages
Quick decisions can be taken without consulting/considering followers/ employees.
Work gets done in time/on schedule.
Line of command/communication is clear as it is top-down/followers know exactly what
to do.
Direct supervision and strict control ensure high quality products/service.
Provides strong leadership which makes new employees feel confident and safe.
Works well in large companies where consultation with every employee is impractical.
Clear guidance can be given to low-skilled/inexperienced/new staff.
AND/OR
Negatives/Disadvantages
Leaders and followers may become divided and may not agree on ways to
solve problems.
Workers can become demotivated if their opinions/ideas are not considered.
De-motivated workers impact negatively on productivity.
New/Creative/Cost reducing ideas may not be used/implemented/never be considered.
Followers may feel that they are not valued resulting in high absenteeism/high
employee turnover.
Experienced/Highly skilled workers will resist an autocratic leadership style
because it results in slow growth/low participation/less creativity.
Differences between the democratic and autocratic leadership styles
DEMOCRATIC AUTOCRATIC
The leader involves employees in the A leader takes all decisions alone without
decision making process. involving employees.
Clear/Two way communication ensures Line of command/communication is clear as
group commitment to final decision(s). it is top-down/followers know exactly what
to do.
People-oriented, as employee's feelings and Task-orientated as the opinions of
opinions are considered. employees are not considered.
Workers feel empowered as they are New employees feel confident/safe as
involved in the decision-making process. strong leadership is provided.
Useful when the leader depends on the inputs Useful in a crisis/urgent situation, e.g. after
of experienced followers. an accident/meeting tight deadlines.
Handles conflict situations by involving Handles conflict situations by telling
followers in finding the best solution. followers what they should do.
3.3 Laissez-faire/ Free reign
This leadership style can be used when:
Subordinates are experts and know what they want/can take responsibility for
their actions.
The leader is very busy and delegation of tasks will increase productivity.
Team members need to improve/develop leadership skills.
Suitable when employees are highly experienced and know more about the task
than the leader.
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Impact of the Laissez-Faire leadership style on
businesses Positives/ Advantages
Workers/Followers are allowed to make decisions on their own work/ methods.
Subordinates have maximum freedom and can work independently.
Leader motivates workers by trusting them to do things themselves/on their own.
Authority is delegated, which can be motivating/empowering to
competent workers/increase productivity.
Subordinates are experts and know what they want/can take responsibility for
their actions.
Suitable for coaching/mentoring to motivate employees to achieve more/better things.
It can be empowering for competent followers as they are completely trusted to do
their job.
Individual team members may improve/develop leadership skills.
AND/OR
Negatives/ Disadvantages
Lack of clear direction/leadership may be demotivating to employees.
Employees can be held responsible for their own work which may lead
to underperformance.
Could lead to conflict when some team members act as leaders and dictate to other
team members.
Workers are expected to solve their own conflict situations.
Productivity may be compromised with a lack of tight control over workers not
meeting deadlines.
Productivity might be low, if employees lack the necessary knowledge or skills.
3.4 Charismatic leadership style
This leadership style can be used to:
Sell vision and achieve excellent results.
Motivate employees as the leader is energetic/ inspiring.
Inspire loyalty/hard work among employees.
Impact of charismatic leadership styles on
businesses Positives/Advantages
Expert at selling vision and achieve excellent results.
Employees are motivated as the leader is energetic/ inspiring.
Inspires loyalty/hard work among employees.
AND/OR
Negatives/Disadvantages
Leader believes more in him/her than the team.
Projects can collapse if the leader leaves the team.
Leaders are intolerant of challenges and regard themselves as irreplaceable.
3.5 Transactional leadership style
This leadership style can be applied when:
When the business wants to maximise employee performance.
When deadlines have to be met on short notice/under pressure.
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When workers have a low morale.
When the strategies/business structures do not have to change.
When productivity levels are very low/not according to targets.
Impact of the transactional leadership style on
businesses Positives/Advantages
Encourages employees to work hard because they will receive rewards.
Improves employees' productivity and morale.
The goals and objectives of the business can be achieved as workers are motivated.
Employees know what are expected of them.
Disciplinary action procedures are well communicated.
AND/OR
Negatives/Disadvantages
Employees may become bored/lose creativity as they have to follow rules/ procedures.
A transactional leader will have to monitor the work performance of employees to
ensure that expectations are met.
Managing/controlling employees may be time-consuming.
Some employees may be demoralised/ unmotivated if they fail to reach/meet
targets despite having worked very hard.
Not suitable for team work as all team members can be punished for poor
performance caused by one team member.
NOTE: You must be able to identify the above mentioned leadership styles
from given scenarios/case studies
4 Leadership theories
Situational leadership
Transformational leadership
Leaders and followers
Transitional leadership
4.1 Situational leadership theory
Different leadership characteristics are needed for different situations.
The task/situation dictates the leadership style that should be applied, so leaders
are adaptable/flexible/self-assured.
Effective application of this theory may enable leaders to accomplish their goals.
Relationships between leaders and employees are based on mutual
trust/ respect/loyalty/integrity/honesty.
Leaders have the ability to analyse the situation/get the most suitable people in the
right positions to complete tasks successfully.
Leaders analyse group members/objectives/time constraints, to adopt a
suitable/relevant leadership style.
May lead to conflict when leaders use different leadership styles/when
managing employees in different situations.
The success of this theory depends on the kind of relationship that exists between
the leader and followers/subordinates/employees.
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4.2 Transformational theory
Suitable for a dynamic environment, where change could be drastic.
The passion/vision/personality of leaders inspire followers√ to change
their expectations/perceptions/motivation to work towards a common
goal.
Strategic thinking leaders develop a long term vision for the organisation and sell it
to subordinates/employees.
Leaders have the trust/respect/admiration of their followers/subordinates.
Promotes intellectual stimulation/creative thinking/problem solving which result in
the growth/development/success of the business.
Followers are coached/led/mentored/emotionally supported
through transformation/change so that they can share their ideas
freely.
Encourages followers to explore/try new things/opportunities.
Leaders lead by example and make workers interested in their work.
Leaders have strong, charismatic personalities√ and are very good at motivating staff
to achieve results.
Enable employees to take greater ownership for their work and to know their
strengths and weaknesses.
NOTE: The transitional theory has been left on purpose as it is covered by
the transformational theory, as both speak to change.
4.3 Leaders and followers
Teams achieve great results when there is a sense of understanding between the
leader and the team of followers.
Followers listen to what is expected of them and are willing to work as a team.
Followers easily accept responsibility when something doesn’t work out.
Leaders lead by example and reward positive behaviour.
Leaders motivate employees to devise alternative strategies to find more efficient ways
to use available resources.
Followers might just trail along depending on leaders and other followers to pull them
through the task.
5 The role of personal attitude in successful leadership
Positive attitude releases leadership potential.
A leader's good/bad attitude can influence the success/failure of the business.
Leaders must know their strengths and weaknesses to apply their leadership
styles effectively.
Great leaders understand that the right attitude will set the right atmosphere.
Leaders' attitude may influence employees'/teams' thoughts/behaviour.
Leaders should model the behaviour that they want to see in team members.
Successful leaders consider the abilities/skills of team members to allocate
tasks/roles effectively.
Enthusiasm produces confidence in a leader.
A positive attitude is critical for good leadership because good leaders will stay with
the task regardless of difficulties/challenges.
Successful employees and leaders have a constant desire to work and
achieve personal/professional success.
Leaders with a positive attitude know that there is always more to learn/space to grow.
NOTE: You must be able to identify the role of personal attitude in successful
leadership from given scenarios/case studies.
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