Leading and motivating

• Leadership is the ability to influence others towards achieving common goals.
• Management is a process that involves working with people using resources such ad money and equipment to ensure that a business achieves their goals
• Characteristics of managers: decisive: good managers can analyse situations and come up with effective solutions and have an ability to see problems as they are and to solve them quickly
• Managers must have initiative (the ability to come up with new ideas and find solutions to the problems themselves. E.g ryanair
• Managers must be hard working and put time and effort into their jobs eg. An air lingus manager staying up all night to solve an industrial dispute
• Managers must be flexible and be able to change their methods and approach to business as the business and situation changes they are adaptable. E.g Michael o leary changing his stance om trade unions
• Managers are different to enterpeneurs in the following ways. Entrepreneurs set the business up and managers run them
• Entrepreneurs (enterprise) must generate new ideas. Generating new ideas for business better ways of doing things
• Entrepreneurs take risks in starting w new venture
• Entrepreneurs must raise finance. They must make sure that money is there to start a business. E.g personal savings or a loan
• Management must implement ideas as they run the business on behalf of the entrepreneur
• Management must have 3 basic skills. Leading motivating working communicating
• Leadership is the ability to influence people to follow a particular path or direction. In management it involves delegating, directing staff, having authority and accountability
• Characteristics of a good leader. Authority: the authority of the leader must be recognised by the group. Direct staff: the group must have a shared common objective I.e the leader provides direction
• Delegation: the leader or manager mhst delegate tasks ot responsibilities and the power to get it done (authority) to subordinates
• Accountabilty: the manager must hold subordinates accountable for their actions


  Good leaders rend to have charisma. The ability to inspire enthusiasm among others
• Leadership styles: autocratic leader. Autocratic leaders do nit share their authority with subordinates but prefer to make decisions themselves. This type of leader has no place in a modern workplace
• Autocratic leader characteristics: the manager does not consult with the staff for their opinions. Instead gives out orders or work to be done.

  Staff are not trusted and not allowed to use their initiative.

  Manager often rules by fear and threats and not by encouragement or praise.
• Autocratic leaders don't delegate. They believe they are the only ones capable of doing a job properly. They do not like to be questioned
• Advantages of an autocratic leader. Quick decision making. Decisions are made quickly as the leader does not consult with others. The business does not miss out on opportunities in the market
• Improved productivity. Employees work hard ad they know they are being supervised by management. This can Improve productivity in the workplace
• Disadvantages of autocratic leaders. Industrial action as employees may feel undervalued. Damaging the relationship between manager and employees. Causing increased industrial action
• Staff motivation. Motivation levels are low as staff follow orders and jobs are not delegated to them. Higher absenteeism and staff turnover
• Evaluation of an autocratic leader (Steve jobs). Staff usually become resentful. They may accept it at first but will eventually tire of it. Industrial relations problems may result
• Morale and motivation will be poor this may cause absenteeism and high labour turnover. By not listening to the opinions of staff managers may lose a valuable source of good ideas for the firm
• If managers don't delegate then staff don't get a chance to develop decision making and leadership skills. Suitable staff may not be available in the firm to fill future management positions
• This style of leadership may be appropriate in a crisis or emergency where tough decisions need to be made. E.g turning around a business, facing insolvency ect
• Democratic leaders are willing to delegate power and responsibility to subordinates and make decisions with the agreement of the majority but ulultimately responsibility rests with the manager
• Characteristics of a democratic leader is staff are consulted for their opinion before management makes decisions. They are involved in the decision making process.
• Democratic leaders have trust in the staff and allows them to use their initiative. Praises them for work done and encourages them
• Democratic leader delegates work to staff and involves them in the running of the business. Welcomes suggestions and input from staff
• Advantages of a democratic leader. Increased interpreneurship as employees are willing to come up with new ideas that can help increase sales/decrease costs
• High levels of motivation as they feel valued and leads to higher productivity levels


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• Disadvantages of a democratic leader is slow decision making as managers consult with their employees before making major business decisions
• Democratic disadvantages mean frustrated employees as they may feel frustration when their ideas are not incorporated into the business
• Evaluation of a democratic leader: morale is high as workers feel they are an important part of the organisation. By being encouraged to use their initiative, staff will become valuable sources of ideas and may become intrapeneurs. By being allowed to work on their own initiative leaders will emerge on the staff. These workers may become candidates for promotion. Industrial relations climate in the firm will be good
• Democratic leaders may be appropriate in a business that promotes teamwork. Ie Google. Works well in an environment where staff can handle responsibility
• Laisse-Faire leadership style. Means leaders set general goals for staff and steps back letting them get on with the job in whatever way they think is best. Management has a facalitive does not get involved in the day to day running of the business
• Laissez faire manager- within broad guidelines the workers are left get on with their job. A lot of trust and responsibility is placed on staff to do their jobs properly. Can result in high levels of intrapeneurship which benefit the business
• Advantages or a Laisse fare leader is employee motivation as they feel trusted by management and work hard for the benefit of the company to achieve the firm goals. Improved skills and knowledge us another benefit as delegated work helps employees to improve their skulls and knowledge and prepares for further promotion