1. Managing Change Key Influences on the Change Process: Leadership
Guidelines for bureaucrats: (1) When in charge, ponder. (2) When in trouble, delegate. (3) When in doubt, mumble.
James Boren
Managing change is about leading change.
Shona Brown
All leadership, management or vision will become useless if it becomes static.
Paul Corrigan
BUSS4.9 Leadership

2. In this topic you will learn about:
The meaning of leadership
The range of leadership styles
Assessing internal and external factors influencing leadership styles
The role of leadership in managing change
Assessing the importance of leadership
BBC
PM Winston Churchill's speech: 'Their finest hour'
Youtube
Henry V Speech to the troops
Lean on Me Inspirational Speech
Do they inspire you to achieve through leadership?
BUSS4.9 Leadership

3. The Meaning of Leadership
‘The only definition of a leader is someone who has followers’
Peter Drucker (1909 – 2005)
‘Management is the art of achieving that certain things are done through people’
Mary Parker Follett
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.
Youtube
Follow the Leader
Leadership – the ability to inspire people to follow
BUSS4.9 Leadership

4. The Range of Leadership Styles
Kurt Lewin (1890 – 1947) put forward three different styles of leadership:
Autocractic (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. 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

6. The Range of Leadership Styles
Blake and Mouton’s Country Club Management (1964)
1,9
9,9
1,1
9,1
1,9 Country Club Management
9,9 Team Management
Concern for People
5,5 Organisation Man Management
9,1 Authority Obedience
1,1 Impoverished Management
Concern for Production
The grid shows five leadership styles with the first number showing the task orientation (Production) and the second the employee orientation (People) e.g 1,9 means low concern for production and high concern for people.
BUSS4.9 Leadership

7. 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
Brittas Empire
The Brittas Empire Series 1 Episode 2 part 2 of 3
What traits would you look for in a leader?
BUSS4.9 Leadership

8. 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?
BBC
M&S Boss: I won't take a pay rise
Marks and Spencer chief executive Sir Stuart Rose has said he will not take a pay rise this year after cutting 1,230 jobs at the chain.
Discuss how each of the above external factors as studied from 4.2 to 4.6 might affect leadership styles
BUSS4.9 Leadership

9. The Role of Leadership in Managing Change
Change management requires strong leadership. There are numerous examples that candidates could use to provide examples of this.
Setting clear objectives to drive the change
Communicating with employees to gain commitment to change
Allocation of sufficient resources to aid change
Instilling a change culture
You will learn more about culture in 4.10 and the role of project champions in 4.12
BUSS4.9 Leadership

10. 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

11. The Range of Leadership Styles
Activity
There are numerous theories regarding leadership – other theories include those of:
Douglas McGregor – Theory X and Theory Y Managers
Fred Fiedler – Contingency Model
John Adair – Action Centred Leadership
Look at the work of two theorists from the above and those that you have looked at in this Unit. Your task is to research a chief executive of one of the UK’s FTSE 100 firms. How do these leadership theories apply to your chosen leader? Write a short report (200 words) giving examples of leadership style and justifying your findings.
Before attempting the essay on the next slide read this article on the difference between leaders and managers.
BUSS4.9 Leadership

12. Essay
Warren Bennis, a distinguished expert in the field of leadership styles states "There is a profound difference between management and leadership, and both are important. To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading is influencing, guiding in a direction, course, action, opinion. The distinction is crucial“
With reference to businesses you have studied to what extent do you believe that leadership, rather than management, is key to success when managing change.
BUSS4.9 Leadership