Management & Leadership, Study notes of Business

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Management & Leadership

3.2 Managers, Leadership and Decision-­‐Making

What you need to know

• Role and tasks of managers
• Leadership styles
• How leadership compares with

management

Two Different Leadership Perspec;ves

Tradi;onal View

Command & Control

Decision-­‐making

Modern View

Inspiring employees Crea;ng a vision Shaping core values & culture Building effec;ve teams

Why Leadership is Increasingly Important in Business

• Changing organisa;onal structures
  • Flatter + greater delegation
  • Teamwork + focus on quality assurance
  • Coaching, support & empowerment
• Rapid Change
  • Change is becoming a constant feature of business life
  • Soft skills of leadership & management increasingly important

How Strategic Leadership is Demonstrated

Where the leader weighs up the op;ons and decides

Where the leader is the embodiment of the strategy, but not involved day-­‐to-­‐day

Where leaders set the vision and core beliefs

Where leaders take direct control (^) Leadership as command

Leadership as vision

Leadership as decision-­‐ making

Leadership as symbolic

Leadership or Management?

Inspire people Build rela3onships Take risks Have followers

Leaders Enact the plan Use their authority Manage risks Have subordinates

Managers

In reality, both are closely linked

Three Tradi;onal Levels of Management in Business

Senior Management

• E.g. Board of Directors
• Set corporate objec;ves & strategic direc;on
• Board is responsible to shareholders; led by the CEO Middle Management
• Accountable to senior management
• Run business func;ons and departments Junior Management
• Supervisory role, accountable to middle management
• Monitor & control day-­‐to-­‐day tasks, and manage teams of workers

What is a Leadership Style?

• The way that the

func3ons of leadership

are carried out

• The way that a leader

behaves

Authoritarian

• Focus of power is with the manager
• Communica;on is top-­‐down & one-­‐way
• Formal systems of command & control
• Use of rewards & penal;es
• Very li[le delega;on
• McGregor Theory X approach

Paternalis;c

• Leader decides what is best for employees
• Links with Mayo – addressing employee needs
• Akin to a parent/child rela;onship
• S;ll li[le delega;on
• A soMer form of authoritarian leadership

Laissez-­‐faire

• Leader has li[le input into day-­‐to-­‐day decision-­‐making
• Conscious decision to delegate power
• Managers / employees have freedom to do what they think is best
• Effec;ve when staff are ready and willing to take on responsibility
• Not the same as abdica;on

McGregor Theory X & Y

Grouped Managers into Two Types

Theory X Managers

Theory Y Managers Average worker is lazy and dislikes work Workers need to be controlled & directed Centralised organisa;on and exercise of authority

Most people enjoy work Workers will take responsibility and organised themselves Decision-­‐making can be delegated

Tannenbaum and Schmidt (1)

• A “con;nuum” of leadership behaviour
• Con;nuum represents a range of ac;on related to the: - Degree of authority used by the manager - Area of freedom available to non-­‐managers
• Links with Theory X ( boss-­‐centred leadership ) & Theory Y ( subordinated-­‐ centred leadership )

Tannenbaum and Schmidt Con;nuum of Leadership Manager-­‐centered leadership Subordinate-­‐centered leadership

makes decision^ Manager & tells staffabout it decision to hisManager sells staff presents ideasManager ques@ons from& invites staff

Managerpresents tenta@vedecision subject tochange

Managerpresents problem; getssugges@ons, then makes thedecision

group to makeManager asks decision withinthe limits he/ she sets

allows team toManager op@ons &develop ac@ons defineddecide on by manager Tell (^) Sell Consult Joins