Managing Change Leadership BUSS4.9 Leadership

The Meaning of Leadership Leadership is the ability to influence and direct people in order to meet the goals of a group. Management is the process through which company resources are used and decisions made in order to meet the objectives of the firm It is important to distinguish between leaders and managers. This is difficult to do. In essence, leaders are those people that can inspire and motivate people to meet objectives; managers will set objectives and decide how to go about achieving them. Often leaders and managers are one and the same person. Leadership – the ability to inspire people to follow BUSS4.9 Leadership

The difference between leadership and management Direct and monitor others Problem solvers Official position of responsibility in the organization Skilled and qualified to perform role Believes in doing things right Listened to by others because of status Accepts and conforms to the ‘norms’ of the organization Motivate/ Inspire Innovators who encourage change Stems from personal qualities or traits Natural abilities and instincts Believes in doing the right thing Respected and trusted by followers Creates and develops a culture of change ‘Leaders seize opportunities and managers avert threats’.

The Range of Leadership Styles Autocratic (Authoritarian) – the leader makes a decision without consultation e.g. In the army when quick decisions are required in battle Democratic – the leader consults his team but makes the final decision e.g. A skilled workforce where each team member can make strong contributions Laissez-Faire (to leave alone) – the leader allows his team to make decisions e.g. Experienced and competent staff given freedom to make decisions themselves To these we could add: Paternalistic – the leader acts in a fatherly way towards the workforce – making decisions based on the needs of the workforce as well as the business e.g. Often family or smaller organisations with a more caring style of leadership, Bureaucratic – leaders work to rules and regulations (‘by the book’) e.g. In bureaucratic organisations where the culture is very much led by the rules However, there are numerous other leadership styles. What is important is that the style of leadership is appropriate to the situation BUSS4.9 Leadership

Leadership styles: Autocratic leadership: leaders who take decisions on their own with no discussions. E.g set objectives and give instructions. Centralises decision making Democratic leadership: leaders who discuss with workers before taking decisions. Consultion/decisions based on majority voted.. Paternalistic leadership: leaders who will seek out advice, listen, explain issues and consult with the workforce but will not allow them to make the final decision. (closer to Authoritarian) Bureaucratic leadership: leaders who use rigid and complex rules to procedures to direct and lead the organization. Laissez faire leadership: leaders who leave their colleagues to get on with their work and there is not supervision or control. Monitoring and feedback needed. What is important is that the style is appropriate for the situation! Differing leadership styles

Which leadership style is best.....? What does the team want? Individual? The situation?

Qualities of effective leaders Good leadership Ability to communicate – Willingness to listen. Capable of critical thinking – logically thinking – not driven by personal wants or desires. Great self motivation and determination to succeed.

The Range of Leadership Styles Tannenbaum and Schmidt’s Continuum Theory (1973) The Continuum Theory looks at 7 levels of delegation from 1 (no delegation) to 7 (highly delegated) Use of authority by the manager Area of freedom for subordinates 1 2 3 4 5 6 7 Manager takes and announces decisions Manager sells decision Manager presents decision with ideas and invites questions Manager suggests provisional decision and invites discussion Manager presents the situation, gets feedback and then decides Manager explains, defines parameters and asks team to decide Manager allows team to develop options and decide on action based within managers limits BUSS4.9 Leadership

Task Using your pink booklet try to find the leadership styles of the 5-6 businesses you are researching. Make sure you have a examples across the 3 main leadership styles. Use Business websites e.g. tutor2u / In Google type in “online.stu.edu leadership styles”

McGregor's Theory X Theory Y Douglas McGregor conducted research into leader’s assumptions about workers they were responsible for. He concluded the assumptions the leader makes influences how the leader / manager leads / direct their staff. He coined the terms ‘Theory X leaders’ and ‘Theory Y leaders’.

Theory X Theory Y assumptions… Theory X leaders/managers believe Theory Y leaders/managers believe . Do naturally like work. Willingly accept responsibility. Are motivated by means other than controls and threats. Can show initiative and imagination in helping the business to succeed. Don’t like work and are lazy. Controlled and monitored Are motivated by money, not responsibility. Seek job security not job enrichment.

Conclusion: Theory X links to Autocratic Leaders who think Theory Y have democratic leadership style. In practical terms, most managers views and assumptions will lie somewhere between these two extreme views.

Factors that Influence Leadership Styles Internal Factors There are a number of internal factors that influence the style of leadership: The expertise and experience of the workforce The skills required for the work to be done The personal traits of the leader The power given to the leader The time frame associated with the task to be undertaken What traits would you look for in a leader? BUSS4.9 Leadership

Factors that Influence Leadership Styles External Factors There are a number of external factors that influence the style of leadership: The political and legal environment The economic environment The social environment The technological environment Changing nature of the industry Do leaders need to lead by example? Discuss how each of the above external factors as studied from 4.2 to 4.6 might affect leadership styles BUSS4.9 Leadership

Factors that influence leadership style Internal: Skill level and experience of the team The work involved – routine or creative? Preferred natural style of the leader The time limit – i.e. quick decisions needed External: LEPESTC e.g. Economic environment rapid decision to secure business survival Nature and speed of change in the industry – technological change comes from workers who have scope for problem solving Legal changes – new laws such as Health & Safety, may need a directive approach There is no single right way to manage an organisation that suits all situations. A good manager can switch instinctively between styles.

Leadership and managing change Change management requires strong leadership. There are numerous examples that candidates could use to provide examples of this. Managing change: Setting new objectives that recognise the need for change Ensuring adequate resources Appropriate planning Leading change: Establishing a vision for the business and leading staff towards it Motivating staff at all levels so they are positive and less likely to resist change Put change at the centre of the culture of the organisation

Assessing the Importance of Leadership Effective leadership is at the heart of any organisation, whether it be a school/college or a FTSE 100 company. A company looks to its leaders for a number of reasons: Vision Support for the welfare of the workforce Provision of a clear sense of direction for the company Inspiration for the company A figure to give guidance and to be a mouthpiece to the external world BUSS4.9 Leadership