Leadership & Management

• management is the practice of achieving an organization's objectives by using and controlling the available human and non-human resources of the business in an effective way. A manager is someone with decision-making authority within and to achieve specific organizational goals.
• Leadership is the process of influencing, invigorating and inspiring others to achieve organizational goals. A leader is someone who influences and inspires others to get things done. A leader fosters motivation, respect, trust and loyalty from the

  workforce.
• Time and devotion: Management is sometimes described as a '9am to 5 pm' job, whereas leadership is about being responsible 24-hours each day. Managers deal with tactical decisions whereas leaders handle strategic decisions.
• Roles and responsibilities: Leaders are accountable for a much broader range of roles and responsibilities. They deal with what and why questions, such as the strategic direction of the organization. Hence, leaders are creative organisation's strategic direction and innovative thinkers. Whereas, managers deal with routine how and when questions. They know how best to administer the day-to-day operations of a business.
• Influence on others: Instructions and orders from managers are listened to because they come from an official person of authority. Leaders, however, inspire and motivate their followers through action and a vision. Leaders focus on people rather than concentrating on tasks. Hence, leaders are more socially engaged than managers.
• • Risk taking - Managers follow predetermined rules and

  policies set by the organization. They tackle a particular task

  by keeping order and control, complying with company

  expectations and policies. Hence, their focus tends to be

  on accomplishing tasks. Leaders are more radical in their

  thinking. They take risks by challenging the status quo in order to move the organization forward.
• • Vision: Leaders create a culture of hope, getting people to where they have not been before, whereas managers abide by the procedures and culture of an organization. Managers can do well in familiar and secure business environments, but leaders are the ones who shine during times of crises and change.
• Leadership style refers to the ways in which decision makers

  behave or reveal their behaviour. There are five common styles

  of leadership.
• An autocratic leader is one who makes all the decisions and

  prefers not to delegate any responsibility. Instead, the autocratic

  leader (or the authoritarian) simply tells subordinates what to

  do, i.e. there is a clear chain of command. This leadership style

  is suitable in situations that require quick decision-making or

  when critical decisions have to be made, such as during a crisis

  or when dealing with a hostile takeover
• One drawback of an autocratic leadership style is that

  communication is top-down, so any opinions or suggestions

  of the workers are ignored. Leadership is often based on the

  personality of the leader. This can cause resentment amongst

  employees as they have little opportunity to make a real

  contribution.
• Paternalistic leaders treat their employees as if they were family

  members by guiding them through a consultation process

  and acting in the best interest of their subordinates, even if

  the workforce does not always agree with the decisions made.

  Paternalistic leaders have exceptional organizational skills and build trust with their teams
• A negative paternalistic style occurs when the leader

  perceives the workers as less than capable, so leads by

  supervision, guidance and control.

  A positive paternalistic style occurs when the leader

  perceives the workers as highly capable, so nurtures,

  supports and develops the workers.
• A democratic leader is one who involves employees in the

  decision-making process. They consult staff and consider their

  views before making any final decision. This participative

  leadership style means that decision-making is decentralized.

  Democratic leaders can bring about better morale and job

  satisfaction as employees are able to express their views and

  have some input into decision-making
• main limitation of democratic leadership is that it can delay decision-making because more people are involved in the process. Furthermore, such a style is not suitable when dealing with a very large workforce.
• Laissez-faire leaders are those who have minimal direct input in

  the work of employees. Instead, they allow subordinates to make

  their own decisions and to complete tasks in their own way. The

  leader sets the objectives, but it is up to employees to decide

  how best to achieve these using the available resources.

  There is a high level of motivation because the employees

  feel trusted and highly valued by their employer.
• Limitation of laissez-faire leadership is that coordination

  and decision-making can be time-consuming as there is a

  lack of direct supervision or support. Hence, execution of

  business strategy can be prolonged, so this leadership style is

  unsuitable for businesses or situations that require quick and

  critical decision-making.
• Situational leadership is a leadership style that, unlike the others

  above, is not based on any single dominant approach. In essence,

  it is about using the right leadership style for the right situation. It also suggests that leaders must be able to change and adapt their style to different situations.

  CLOTS: the factors that can affect situational leadership styles:

  culture, leader, organizational structure, tasks, subordinates