IB Business and Management 2.4 Leadership

Leadership Function: noun 1 : the office or position of a leader; 2 : capacity to lead 3 : the act or an instance of leading — Source: Merriam- Webster On-line

"Leadership is the ability of a superior to influence the behavior of a subordinate or group and persuade them to follow a particular course of action." — Chester Bernard

"Leadership is the art to of influencing and directing people in such a way that will win their obedience, confidence, respect and loyal cooperation in achieving common objectives." — U. S. Air Force

"A manager takes people where they want to go. A great leader takes people where they don't necessarily want to go but ought to." — Rosalyn Carter

"Managers have subordinates — leaders have followers." — Murray Johannsen

"The first job of a leader is to define a vision for the organization.... Leadership is the capacity to translate vision into reality." — Warren Bennis, President, University of Cincinnati

"My definition of a leader... is a man who can persuade people to do what they don't want to do, or do what they're too lazy to do, and like it." — Harry S. Truman, , Thirty-third President of the United States

Task – 5 mins In Pairs Write your own definition of leadership

LEADER Think about your definition What qualities would someone who is a good leader possess?

Leadership Qualities 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 to the business Ability, self-belief and qualities that promote support from others.

Leadership/management styles The way that managers/leaders deal with their staff is known as their Management Style Sometimes Management Styles are categorised: Autocratic Democratic Laissez – Faire Situation Leadership Looking at the words can you Tell anything about what these management styles involve?

Task Use the Unit 2.4 chapter of the text book to help you fill in the Leadership types table

Autocratic Autocratic managers are Authoritarian They tell employees what to do and want it done their way They tend to use top down communication

Democratic Democratic managers like to involve employees in decisions (Consultative) They listen to ideas and encourage staff to contribute Communication tends to be 2 way Delegation occurs

Laissez - Faire A relaxed approach to management Laissez – Faire managers trust staff and give direction with minimal supervision

Factors affecting Leadership style Leadership Style Nature of the task Personality Time constraints Skills of manager and the workforce Rate of change Level of risk

Conclusion Each management style can work well in different situations Managers need to be adaptable and change their management style depending on the situation Trend towards democratic management style (due to motivation and production techniques)

Task Watch the video What type of management style do you think each of the managers has? Which one of the managers would you prefer to work for? Why?

Types of Leadership Style Autocratic: Leader makes decisions without reference to anyone else High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively

Types of Leadership Style Democratic: Encourages decision making from different perspectives Workers feel ownership of the firm and its ideas Improves the sharing of ideas and experiences within the business Can delay decision making

Types of Leadership Style Consultative: process of consultation before decisions are taken Persuasive: Leader takes decisions and seeks to persuade others that the decision is correct

Types of Leadership Style Laissez-Faire: ‘Let it be’ – the leadership responsibilities are shared by all Can be very useful in businesses where creative ideas are important Can be highly motivational as people have control over their working life Can make coordination and decision making time consuming and lacking in overall direction Relies on good team work

Leadership Theories

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

1:9 maximum concern for people, minimal concern for product, ‘ friendly ’ manager, lower productivity, conflict ignored 1:1 mimimal concern for people and product, laissez faire, little effort or involvement 9:1 minimum concern for people, purely task focused, people ‘ a number ’, autocratic, maximum control 9:9 ‘ ideal ’ style, maximum concern for people and product, leader gets involved with the people 5:5 a balance of people/product focus, some control but not too much, can fail when high productivity is important

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

Likert's Leadership Styles AutocraticDemocratic Exploitive authoritative Benevolent authoritative ConsultativeParticipative

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.

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.

Tannenbaum Schmidt Continuum of Leadership