1. Managing Change Leadership
BUSS4.9 Leadership

2. 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

3. 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’.

4. 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

5. 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

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

7. 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.

8. 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

9. 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”

10. 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’.

11. 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.

12. 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.

13. 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

14. 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

15. 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.

16. 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

17. 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