Chapter 4 / Management and Leadership

Question 1

What is leadership?

Answer 1

A relationship through which one person influences the behavior or actions of other people

Question 2

What is traditional leadership?

Answer 2

Command and Control
Decision making

Question 3

What is modern leadership?

Answer 3

Inspiring employees
Creating a vision
Shaping core values and cultures

Question 4

What are the three levels of management?

Answer 4

Senior management ( board of directors )
Middle management ( accountable to senior )
Junior management ( accountable to middle )

Question 5

Why is planning important?

Answer 5

1) Sets objectives
2) Analyses sales forecasts and competitors
3) Estimating resources

Question 6

Why is leading important?

Answer 6

1) Motivates employees
2) Clear communication with employees

Question 7

Why is organizing important?

Answer 7

1) Determines the structure of the organization
2) Establishing and maintaining organizations

Question 8

Why is controlling important?

Answer 8

1) Reviewing and reporting on performance
2) Comparing objectives to performance
3) Reviewing targets

Question 9

What is a leadership style?

Answer 9

The way that the functions of leadership are carried out
The way that a leader behaves

Question 10

Management and leadership key terms

Answer 10

1) Authority - is the power or ability to carry through an action
2) Delegation - is the passing of authority down the organizational structure
3) Empowerment - a series of actions designed to give employees greater control over their working lives.
4) Decentralization - passing authority from the center of the organization to those working elsewhere in the business

Question 11

Different types of leadership

Authoritarian leadership

Answer 11

1. The focus of power is on the manager
2. Communication is top-down & one-way
3. Formal systems of command & control
4. Use of rewards & penalties
5. Very little delegation

Question 12

Different types of leadership

Paternalistic Leadership

Answer 12

1. Leader decides what is best for employees
2. Links with Mayo – addressing employee needs
3. Akin to a parent/child relationship
4. Still little delegation

Question 13

Different types of leadership

Democratic Leadership

Answer 13

1. Focus of power is more with the group as a whole
2. Leadership functions are shared within the group
3. Employees have greater involvement in decision-making
4. Emphasis on delegation and consultation

Question 14

Different types of leadership

Laissez Faire Leadership

Answer 14

1. Focus of power is more with the group as a whole
2. Leadership functions are shared within the group
3. Employees have greater involvement in decision-making
4. Emphasis on delegation and consultation

Question 15

What is the blake mouton managerial grid ?

Answer 15

Identifies five different leadership styles based on a grid
Grid has two axes, measuring:
Concern for People (y-axis)
Concern for Completing Task (x-axis)

Question 16

Blake mouton, 5 leadership styles

Answer 16

Impoverished Management - Laissez-faire style; minimal effort on management; hoping to avoid blame for errors

Country Club Management - Focus on creating safe, comfortable working environment; minimal conflict

Task Management - Autocratic style, consistent with McGregor Theory X. Workers have to complete tasks – nothing else

Team Management - Staff closely involved in decision-making & feel valued; consistent with McGregor Theory

Middle of the Road Management - Compromises made to achieve acceptable performance; thought to be the less effective leadership style