3Lesson ObjectivesTo be able to discuss paternalistic, democratic and autocratic leadership stylesTo be able to discuss McGregor's theory x and y leadership theoryTo be able to answer some past paper questions on leadership
5Definition of leadership styles from Edexcel A leadership style is the way in which a person in authority exercises their responsibilities, such as decision-making
6Examples of leaders School Family Country World Head of your family David CameronNick CleggWorldBarak ObamaNelson Mandela
7Leadership Definitions include: Exerting influence on others Motivating and inspiring peopleHelping people realise their potentialSetting a good exampleEncouraging people to achieve their goalsDavid Cameron
8Difference between leadership and management Motivating and inspiring peopleInnovators – encourage others to accept changeNatural abilities and instinctsRespected and trusted by followersMANAGEMENTDirecting and monitoring othersProblem solverOfficial position of responsibilityAccepts and conforms to the ‘norms’ of the business
9Factors that influence leadership styles Internal:Skill level and experience of the teamThe work involved – routine or creative?Preferred natural style of the leaderThe time limit – i.e. quick decisions neededExternal:Economic environment rapid decision to secure business survivalNature and speed of change in the industry – technological change comes from workers who have scope for problem solvingLegal changes – new laws such as Health & Safety, may need a directive approachThere is no single right way to manage an organisation that suits all situations. A good manager can switch instinctively between styles.
10Importance of leadership styles Clear and effective leadership is essential to the success of business especially during periods of rapid change including redundancies and downsizingIn successful business workers look to their leaders for :Clear vision and a sense of directionSupport and commitment to their welfareConfident and effective decision makingEffective planningFull communicationIn organisation with poor management employees expect nothing positive. There is a climate of mistrust. Managers are not respected or trusted. The organisation will have to deal with de-motivated employees as well as the changes necessary
12Your task In teams – hit the books, large paper – tell me about: DemocraticAutocraticPaternalistic
13How did you get on? Autocratic / Authoritarian Leaders take decisions own their own with no discussionDemocraticLeaders discuss with workers before making decisionsPaternalisticLeaders listen, explain issues and consult with the workforce but will not allow them to make the final decision
14Used in the armed forces! Leadership theoryAuthoritarianAuthoritarian leaders provide clear expectations for what needs to be done, when it should be done, and how it should be done.There is also a clear division between the leader and the followers.Authoritarian leaders make decisions independently with little or no input from the rest of the group. Anna WintourEditor of VogueUsed in the armed forces!Mrs Gordon's notes14
15Autocratic Leadership Managers like to make all the important decisions and closely supervise and control workers.Managers do not trust workers and simply give orders that they expect to be obeyed.It can be effective in certain situations. For example, when quick decisions are needed in a company or when controlling large numbers of low skilled workers.
16Advantages & Disadvantages of autocratic leadership New, untrained employees who do not know which tasks to perform or which procedures to followEffective supervision can be provided only through detailed orders and instructionsThere are high-volume production needs on a daily basisThere is limited time in which to make a decisionThe area was poorly managedWork needs to be coordinated with another department or organizationDisadvantages:Rely on threats and punishment to influence employeesDo not trust employeesDo not allow for employee input
17Leadership theoryDemocraticDemocratic leaders offer guidance to group members, but they also participate in the group and allow input from other group members.Employees have greater involvement in decision-makingEmphasis on delegation and consultationMrs Gordon's notes17
18Democratic Leadership Will put trust in employees and encourage them to make decisions. They will delegate to them the authority to do this (empowerment) and listen to their advice.This requires good two-way communication and often involves democratic discussion groups, which can offer useful suggestions and ideas. Managers must be willing to encourage leadership skills in subordinates.
19Advantages & Disadvantages of democratic leadership Develops plans to help employees evaluate their own performanceAllows employees to establish goalsEncourages employees to grow on the job and be promotedRecognizes and encourages achievement.It is most successful when used with highly skilled or experienced employees or when implementing operational changes or resolving individual or group problems. Time consuming process of decision-makingDisadvantages:In the case of uneducated/unskilled worker, it is not very effective.Evasive employees, who prefer not to be involved, may create problems.Passing the buck for failure may be common.Due to lack of communication-skill, some important suggestions may get unheard.
20Paternalistic Leader decides what is best for employees Leadership theoryPaternalisticLeader decides what is best for employeesLinks with Mayo – addressing employee needsAkin to a parent/child relationshipStill little delegationA softer form of authoritarian leadershipJohn CadburyMrs Gordon's notes20
21Paternalistic Leadership Managers give more attention to the social needs and views of their workers. Managers are interested in how happy workers feel and in many ways they act as a father figure.They consult employees over issues and listen to their feedback or opinions. The manager will however make the actual decisions (in the best interests of the workers) as they believe the staff still need direction.The style is closely linked with Mayo’s Human Relation view of motivation and also the social needs of Maslow.
22Advantages & Disadvantages of paternalistic leadership Manager involves employees in decision makingmanager provides feedback and answers Questionsmanager meets employees social needsThese elements will keep the employees satisfied and motivated.Disadvantages:If wrong decision are made then the employees will become dissatisfied with the leaderEmployees rely on leaderTeam become competitive
23Laissez-faire Style This involves the minimum of managerial direction. It probably works best in workplaces where creativity would be stifled by strict managerial control (e.g. designers)All rights to make decisions are given to the workersHowever, it does not mean that people can do what they like when they like!Relaxed leadership but the organisation can lack direction.
26Theory X and Theory YDouglas McGregor thought there were 2 types of managers, he was a theory Y manager. He believed if he empowered his employees, ultimately this would allow them to be happier at work and more productive. Theory X is often said to describe a traditional view of direction and control.It can be argued that businesses will need a number of theory X and a number of theory Y managers to be effective, as some staff will need differing management styles to get the best out of them.
28issues deadlines and ultimatums distant and detached characteristics of the x theory managerresults-driven and deadline-driven, to the exclusion of everything elseintolerantissues deadlines and ultimatumsdistant and detachedaloof and arrogantelitistshort tempershoutsissues instructions, directions, edictsissues threats to make people follow instructionsdemands, never asksdoes not participatedoes not team-buildunconcerned about staff welfare, or moraleproud, sometimes to the point of self-destructionone-way communicatorpoor listenerfundamentally insecure and possibly neuroticanti-socialvengeful and recriminatorydoes not thank or praisewithholds rewards, and suppresses pay and remunerations levelsscrutinises expenditure to the point of false economyseeks culprits for failures or shortfallsseeks to apportion blame instead of focusing on learning from the experience and preventing recurrencedoes not invite or welcome suggestionstakes criticism badly and likely to retaliate if from below or peer grouppoor at proper delegating - but believes they delegate wellthinks giving orders is delegatingholds on to responsibility but shifts accountability to subordinatesrelatively unconcerned with investing in anything to gain future improvementsUnhappy
29Theory X and Y Theory X leaders believe: workers do not like work and will avoid it if possible,Need to be controlled and monitored,are motivated by moneyTheory Y leaders believe:workers do not dislike like workWill seek responsibilityare motivated by other ways rather than control/threatsAre capable of showing initiative
30McGregorTheory X managers “my employees are lazy and have no motivation. I constantly have to push them to work and threaten them if they don’t do what they are supposed to do, I make the decisions not them”Theory Y managers “my employees enjoy coming to work. This is because I have made a fulfilling environment, I give responsibility where possible and enjoy the contribution my employees make to the business”
31XThis is derived from Taylor’s scientific school of management. Theory X managers believe in technique such as piece-rate and close-supervision.It is likely Theory X is self-fulfilling i.e. if you fail to trust your workers, they will lose interest in their work, making the manager feel he/se was correct in their Theory X beliefs.
32YStems from Mayo’s human relations and Maslow’s work in human needs. Theory Y focuses on social and psychological needs of the workers. A Theory Y manager is likely to believe that:Workers seek satisfaction not just pay from employment.Workers possess knowledge, creativity and imagination.Workers are committed.Poor worker performance is due to poor management.Employees wish to contribute to decision making.If leaders adopt Theory Y, the business implications are:Greater delegation.Improved training and communication.De-layering.
33AssumptionsTheory XThe average person dislikes work and will avoid it unless directly supervised.Employees must be coerced, controlled and directed to ensure that organisational objectives are met.The threat of punishment must exist within an organisation.In fact people prefer to be managed in this way so that they avoid responsibility.Theory X assumes that people are relatively un-ambitious and their prime driving force is the desire for money & security.Theory YEmployees are ambitious, keen to accept greater responsibility and exercise both self-control and direction.Employees will, in the right conditions, work toward organisational objectives and that commitment will in itself be a reward for so doing.Employees will exercise their imagination and creativity in their jobs if given the chance and this will give an opportunity for greater productivity.Theory Y assumes that the average human being will, under the right conditions, not only accept responsibility but also seek more.Lack of ambition and the qualities of Theory X are not inherent human characteristics but learned in working environments that suffocate or do not promote Theory Y behaviours.
34Final theoryDemocratic (consultative) manger asks staff for their opinion and a decision that benefits everyone is reached as a groupDemocratic (paternalistic) staff asked for their opinion then manager makes the final decisionAutocratic – staff given orders in a tall hierarchy, not consulted at all, workers not trusted to be part of the decision, orders are dictatedLaissez faire – staff left alone to get on with tasks in a creative environment
35Sample question 1Andy Walker, General Manager at Virgin Active Ltd health club in Derby, organises monthly ‘Coffee and Chat’ meetings with his staff to discuss and agree new ideas with him.Which one of the following leadership styles does Andy seem to be using in this case?A DemocraticB Theory XC PaternalisticD Autocratic
36Answer question 1DEFINITION USED: A leadership style is the way in which a person in authority exercises their responsibilities, such as decision-making (1 mark)Democratic leaders are prepared to share decision-making by talking with employees (1 mark)Which is what Andy is clearly doing by actually involving his staff at VA through these monthly meetings (1 mark)Alternatively, up to 2 marks may be gained by explaining a distracter/distracters:B is incorrect because Theory X is a management view of worker behaviour which suggests that the workers cannot be trusted, in which case a democratic stance is unlikely to be taken (1 mark)C is incorrect because although a paternalistic leader might discuss ideas, they would ultimately make the decisions rather than agree them with staff (1 mark)- D is incorrect because an autocratic leader would dictate rather than share the decision-making (1 mark)
37Sample question 2The Ikea Group, owned by Swedish entrepreneur Ingvar Kamrad, has a large workforce made up of employees ranging from full-time permanent to part-time seasonal staff. Ingvar’s management style has been described by his staff as restrictive and absolute.Which of the following management styles would most apply to Ingvar Kamprad?A Democratic – consultativeB Democratic – paternalisticC AutocraticD Laissez Faire
38Answer question 2Defines autocratic/describes what is meant by management style or democratic or laissez faire (1 mark)- Ingvar Kamprad’s style is restrictive therefore suggests that Ikea workers are not allowed to make decisions (1 mark) and so they have to follow orders (1 mark) because they are not trusted to make the right decision at Ikea (1 mark)- Democratic and Laissez Faire managers implicitly trust their workers (1 mark) so they allow them a certain amount of freedom or flexibility to exercise their duties at Ikea (1 mark) which is not characteristic of an autocratic leader (1 mark)- Assumes that Ikea workers are theory-X type workers (1 mark) which my mean having to be closely monitored or controlled or dictated to (1 mark)
39Sample question 3Lee McQueen, the winner of the BBC’s The Apprentice (series 4), was described by one of the other contestants as a ‘passionate and determined team-player who was good at delegating tasks but he clearly failed to monitor our progress’.Which one of the following leadership styles least applies to Lee?A AutocraticB Theory YC Democratic – consultativeD Democratic – paternalistic
40Answer question 3 Answer is A Autocratic Autocratic means to be oppressive (1) which Lee clearly is not, given his delegation and/or failure to monitor his team (1)- Democratic leaders will tend to delegate because they share decisions/tasks, whilst autocratic leaders will not (1)
41Sample question 4 (appears on part 2 of the paper) Miranda’s leadership style has been described as ‘paternalistic’.Analyse one reason to explain why Miranda’s ‘paternalistic’ leadership might be important to the long term success of Muddy Boots Foods Ltd.Jan 12
42Answer question 4Knowledge 1, Application 1, Analysis 2 Knowledge: 1 mark for describing any aspects of paternalistic leadership, e.g. the boss takes decisions/is in control/ takes the welfare of her staff into account Application: 1 mark for applying in context, e.g. this leadership style might mean that the burger production staff would be well motivated to work Analysis: up to 2 marks are available for explaining the above, e.g. by stating that if burger production staff were not looked after they might leave the company which can add to costs (1) which may result in poor profitability/bad image of the company (1)