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IB Business and Management

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1 IB Business and Management
2.4 Leadership and Management (HL)

2 Trait and Situation Theories
Situational leadership theory presumes that different styles of leadership will be better in different situations. This implies that leaders need to be flexible enough to adapt their leadership to changing situations. Trait theory argues that some individuals are born with traits (personal characteristics) that make them natural leaders. However, these traits will vary from person to person and there is no one particular trait, which on its own, will make a successful leader.

3 In Leadership in Organisations (1997), Gary Yuki
suggests that successful leaders need to have the following traits: dominance (the desire to influence and lead others) adaptability - able to adapt to different situations easily energetic persistence - the will to carry things through and complete them assertiveness - the ability to assert your will onto others reliability and dependability ambition self-confident and tolerant to high levels of stress

4 Task Different researchers and writers on leadership always come up with different lists of the key qualities of leaders. Write your own list of the most important qualities of leaders (Max 10)

5 Contingency approach to leadership (Fred Fiedler 1967)
Fiedler is credited with helping move researchers from concentrating on the traits of leaders to studying leadership styles and behaviours. He said that appropriate leadership style in any situation is dependent, or contingent upon elements unique to that situation.

6 What Fiedler said…… Fiedler suggested that the appropriate leadership style is contingent upon three main factors: The characteristics of the leader - whether they are predominantly relationship-driven or task-driven The situation - the nature of the task such as its difficulty and changeability The nature of the subordinates - the authority the leader has over them and the level of mutual respect that exists

7 Blake and Mouton

8 Blake and Mouton’s Model
The Managerial Grid is based on two behavioral dimensions: Concern for People – This is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task. Concern for Production – This is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task.

9 Blake Mouton Managerial Grid People or Task focused
1:9 Country club management maximum concern for people, minimal concern for product, ‘friendly’ manager, lower productivity, conflict ignored 1:1 Impoverished mimimal concern for people and product, laissez faire, little effort or involvement 9:1 Authority Obedience management/Produce or Perish minimum concern for people, purely task focused, people ‘a number’, autocratic, maximum control 9:9 Team Management ‘ideal’ style, maximum concern for people and product, leader gets involved with the people 5:5 Middle of the Road a balance of people/product focus, some control but not too much, can fail when high productivity is important

10 Blake’s Grid Categorise some teachers in terms of Blake’s grid

11 Likert

12 Likert's Leadership Styles
Autocratic Democratic Exploitive authoritative Benevolent authoritative Consultative Participative

13 Task Watch the video to show examples of Likert’s 4 leadership styles.
Can you think of any other examples?

14 Likert's Leadership Styles
1. Exploitive authoritative - the leader has a low concern for people - uses fear -based methods such as threats to achieve conformance -Communication is almost entirely one-way 2. Benevolent authoritative - the leader has some concern for people - the leader now uses rewards to encourage appropriate performance - listens more to concerns of subordinates - most major decisions are still made by the leader.

15 Likert's Leadership Styles
3. Consultative - the leader is making genuine efforts to listen to the ideas of subordinates. - major decisions are still largely made by the leader. 4. Participative the leader makes maximum use of including subordinates in decision-making.

16 Tannenbaum and Schmidt

17 Tannenbaum Schmidt Continuum of Leadership

18 Key Functions of Management

19 What is the difference between Leadership and Management?
Discuss your ideas What does managing involve? What does leadership involve? Watch the video clip and see if this helps


21 Functions of Management
This refers to the responsibilities and tasks carried out by managers: Set objectives Organise how things are to be done Command, co-ordinate and communicate with others Develop and motivate employees Measure and evaluate performance against objectives

22 Characteristics of good managers
A vision and sense of direction as to where the business should be going Innovation and the creation of new ways of doing things Dedication and commitment Ability, self-belief and qualities that promote support from others.

23 Henri Fayol

24 Henri Fayol French management theorist
Wrote during the early 20th century Identified the key tasks of management regardless of their function

25 5 Functions of Management
to forecast and plan to organize to command or direct to coordinate to control

26 14 Principles of good Management
Division of work. This principle is the same as Adam Smith's 'division of labour'. Authority. Managers must be able to give orders. Discipline. Employees must obey and respect the rules that govern the organization. Unity of command. Every employee should receive orders from only one superior. Unity of direction. Each group of organisational activities that have the same objective should be directed by one manager using one plan. Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. Remuneration. Workers must be paid a fair wage for their services.

27 14 Principles of good Management
Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. The task is to find the optimum degree of centralisation for each situation. Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. Cross-communications can be allowed if agreed to by all parties and superiors are kept informed. Order. People and materials should be in the right place at the right time. Equity. Managers should be kind and fair to their subordinates. Stability of tenure of personnel. High employee turnover is inefficient. Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort. Esprit de corps. Promoting team spirit will build harmony and unity within the organization.

28 Charles Handy

29 Charles Handy (b. 1932) Renowned for being one of Britain’s greatest management gurus Responsible for the ‘wonderful’ Shamrock organisation theory

30 What Charles Handy Says…
Key Characteristics of Managers Key Roles of Managers Intelligence Initiative Self-assurance General Practitioners Confronters of dilemmas Balancers of cultures Good managers require the ‘helicopter factor’ and should not ‘micro-manage’ What does this mean?

31 Peter Drucker

32 Peter Drucker Peter Drucker is one of the most influential writers on management. Drucker saw people as a resource, not a cost, and believed that the workforce should be empowered to create better motivation and customer satisfaction. He published 33 management books during his working life.

33 Managers must be able to….
manage by objectives allow risk taking at all levels of the organisation make strategic decisions and organise tasks and people build teams and measure performance against organisational objectives communicate information quickly and clearly and motivate employees to gain participation and commitment see the business as a whole and integrate his or her function within it to relate the product and industry to the external environment and see economic, political and social developments on a global scale

34 Management by Objectives
Management by Objectives (MBO) refers to the process of managers and employees agreeing on objectives for the organisation Drucker urged that targets should be agreed after discussion, not imposed from above. This ensures employees understand and are committed to the organisation's objectives.

35 MBO Process

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