1) Leadership styles

• Distinguishing between management and leadership

  Leadership

  • Leads by inspiring and motivating employees.
  • Focuses on the vision and mission of the organisation.
  • Focuses on the potential of employees.
  • Influences the actions of employees.
• Distinguishing between management and leadership

  Management

  • Manages processes by using their authority.
  • Focuses on organisation targets.
  • Focuses on the processes involved in the production process.
  • Controls the actions of employees.
• Different leadership styles

  Democratic leadership style

  • Involve employees in the decision-making process. The leader realises that there is power within the collective input of individuals.
  • Ensures the support of employees in decisions made by the leader.
• Different leadership styles

  Autocratic leadership style

  • Does not involve employees in the decision-making process.
  • Employees told what to do and must execute the decisions of the leader without questioning his/ her decisions.
• Different leadership styles

  Laissez-faire/ Free Reign

  • Delegates decision-making to employees that he/ she trusts.
  • Leader separates him/ herself from the decision-making process and allows employees to make decisions in the best interest of the organisation.
• Different leadership styles

  Charismatic leadership style

  • Uses his/ her personality and charm to influence behaviour and actions of employees.
  • Employees inspired by the energy and keenness of the charismatic leader.
• Different leadership styles

  Transactional leadership style

  • Uses rewards and punishments to drive employee towards business goals and targets.
  • Focuses on the performance of employees to measure their effectiveness in terms of the goals of the organisation.
• Difference between the democratic leadership style and autocratic leadership style

  Democratic leadership style

  • Invites employees to be part of the decision-making process.
  • Open communication between the leader and employees.
  • People-oriented, taking into consideration the opinions of employees.
• Difference between the democratic leadership style and autocratic leadership style

  Autocratic leadership style

  • All decisions are taken by the leader alone - without employee involvement.
  • Employees are told what to do and how it must be done.
  • Task-orientated, with the focus on the result and not the employees.