1. EFFECTIVE LEADERSHIP ENT 12

2. 2 WHAT IS LEADERSHIP? It is the ability to: Use motivational strategies to inspire individuals or groups to work toward achieving a common goal Encourage people to do their best Earn the respect of others and give respect to those who deserve it Be honest and fair Provide direction to others Use the talents, efforts, creativity and synergy of a group in a way that will produce positive results

3. 3 LEADERSHIP STYLES AutocraticDemocraticLaissez-faire A good leader uses all three styles, depending on what forces are involved between the followers, the leader, and the situation

4. 4 LEADERSHIP STYLES AutocraticDemocraticLaissez-Faire LeaderWhole GroupEmployees Power Style Emphasis

5. 5 Autocratic Leaders Are goal-oriented Make all the decisions for their organizations Expect employees to do as they are told

6. 6 Autocratic Leaders Lack confidence in employees to make correct decisions Clash with enterprising employees Causes the most level of discontent in employees

7. 7 Autocratic Leaders An autocratic style works when: 1. There is no need for input on the decision 2. Where the decision would not change as a result of input 3. Where the motivation of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making.

8. 8 Autocratic Leaders Use an authoritarian style when: 1. You have a new employee who is just learning the job 2. The leader is competent and a good coach 3. The employee is motivated to learn a new skill 4. The situation is a new environment for the employee

9. 9 Democratic leaders A democratic leader will still make the final decision Invites other members of the team however, to contribute to the decision- making process Normally used when you have part of the information, and your employees have other parts

10. 10 Democratic leaders Note that a leader is not expected to know everything -- this is why you employ knowledgeable and skillful employees Using this style is not a sign of weakness, rather it is a sign of strength that your employees will respect

11. 11 Democratic leaders As participation takes time, this approach can lead to things happening more slowly, but often the end result is better Increases job satisfaction by involving employees or team members in what’s going on

12. 12 Democratic leaders Employees feel in control of their own destiny, such as the promotion they desire, and so are motivated to work hard by more than just a financial reward The approach can be most suitable where team working is essential, and quality is more important than speed to market or productivity

13. 13 Democratic leaders As participation takes time, this approach can lead to things happening more slowly, but often the end result is better The approach can be most suitable where team working is essential, and quality is more important than speed to market or productivity

14. 14 Laissez-faire Leaders Leader allows the employees to make the decision Leader is still responsible for the decisions that are made however Most often, laissez-faire leadership works for teams in which the individuals are very experienced and skilled self-starters Unfortunately, it can also refer to situations where managers are not exerting sufficient control

15. 15 Laissez-faire Leaders This is used when employees are able to analyze the situation and determine what needs to be done and how to do it You cannot do everything – you must set priorities and delegate certain tasks! This is not a style to use so that you can blame others when things go wrong This is a style to be used when you have the full trust and confidence in the people below you

16. 16 LEADERSHIP STYLES Forces that influence the style to be used included: How much time is available Are relationships based on respect and trust or on disrespect? Who has the information - you, your employees, or both?

17. 17 LEADERSHIP STYLES Forces that influence the style to be used included: How well your employees are trained and how well you know the task Internal conflicts Stress levels Type of task. Is it structured, unstructured, complicated, or simple? Laws or established procedures

18. 18 Leadership Tasks Regardless of styles, certain tasks must be performed in an organization, including: 1. Motivating others 2. Resolving conflicts 3. Facilitating communication 4. Managing personal stress

19. 19 MOTIVATING OTHERS Recognize the needs of people and encourage them to pursue personal goals that are compatible with those of the business Reward employees appropriately Demonstrate that their work is meaningful and worthwhile

20. 20 FACILITATING COMMUNICATION It is the role of a leader to make sure that lines of communication are working efficiently Good leaders are good listeners!

21. 21 FACILITATING COMMUNICATION Effective communication is vital Written messages via email, letters, proposals, reports, contract documents, etc. Spoken communication during meetings Verbal communication should be clear and concise Body language

22. 22 RESOLVING CONFLICTS Conflict may be treated as an obstacle or as an opportunity Managers are often mediators, listening to both sides and communicating understanding Leaders use sensitive and effective communication skills to resolve conflicts

23. 23 MANAGING PERSONAL STRESS Balancing commitment to ventures with need to find time with family, friends, and personal endeavours may lead to physical and emotional stress

24. 24 KINDS OF STRESS Two kinds of stress: distress—the negative effect we often associate with the word “stress” eustress—the good stress caused by excitement. This is what drives many entrepreneurs.

25. 25 Managing the Entrepreneur’s Personal Stress Take care of yourself eat right, get enough sleep, exercise Respect the personal needs of your employees and they will respect yours Involve your family in your venture by inviting them to help out Avoid relying on a new venture for all your personal financial needs