2.3 Leadership and management

Question 1

1. What are the differences between ‘management’ and ‘leadership’?

Answer 1

A leader is someone who influences and inspires others to get things done -> Leadership is the process of influencing and inspiring others to achieve organisational goals.
Managers tend to focus on achieving specific goals within a definite time frame -> management involves a process of planning, organising and coordinating human and capital resources to achieve organisational objectives.

Question 2

2. What are the main functions of management?

Answer 2

Henri Fayol - The five functions of management include:
Planning - setting the course of action to achieve organisational objectives
Commanding - give instructions and orders to achieve business objectives
Controlling - responsible for the performance and health and safety of their teams
Coordinating - enfure that all departments strive to achieve the goals
Organising - organise resources

Charles Handy - three key roles of management:
Managers are general practitioners
Managers as confronters of dilemmas
Managers as balancers of cultural mixes

Peter F Drucker - five functions: 
Setting organisational objectives 
Organising tasks and people 
Communicating with and motivating people 
Measuring performance
Developing people

Question 3

3. Distinguish between autocratic, lasseiz-faire, paternalistic and situational styles of leadership.

Answer 3

Autocratic: one leader who makes all the decisions and prefers not to delegate any responsibility
Suitable in situations that require quick decision-making or when critical decisions have to be made
Unskilled workers
Any opinions or suggestions of workers are ignored - resentment
Alienate and demotivate workforce

Paternalistic: treat employees as family members by guiding them through consultation process and acting in the best interest of their subordinates
Worked well in settings where cultural setting has enabled people to work hard out of gratitude to leaders
Workers do not necessarily want their interests to be dictated by someone else

Democratic: involves employees in the decision-making process
Better morale and job satisfaction
Improved decisions due to sharing of ideas
Delay decision-making

Laissez-faire: minimal direct input in the work of employees.
High levels of motivation
Workers feel that they have control over their work
Coordination and decision-making can be time-consuming due to lack of direct supervision or support

Situational leadership: using the right leadership style for the right situation

Question 4

4. What are the five factors that affect situational leadership styles? (CLOTS acronym)

Answer 4

Culture 
Leader
Organisation structure 
Task 
Subordinates

Question 5

5. How do cultural differences and ethical considerations affect leadership style?

Answer 5

Ethical considerations are based on the leader’s personal values and moral judgement, which can determine the extent to which leaders accept responsibility for ensuring ethical conduct of their organisation. The leadership styles adopted by a business have a direct effect on the levels of morale, commitment and competence in the workplace - affects productivity and profitability of the organisation.