2.

3 LEADERSHIP AND
MANAGEMENT
SYLLABUS
The key functions of management A02
Management vs Leadership A02
Leadership Styles:
• Autocratic
• Paternalistic
• Democratic
• Laissez-Faire
• Situational
A03
How ethical considerations and cultural differences may influence leadership and
management styles in and organization A03
THE FUNCTIONS OF MANAGEMENT
The term functions of management refers to the roles and
responsibilities of managers. Five key functions are listed below:

Planning

Organizing Commanding
Acronym:
P – Planning
O - Organizing
3C – Controlling
Coordinating
Commanding.
Coordinating Controlling
PLANNING
Managers are responsible for setting the course of action to achieve
organizational objectives. They are involved in setting both tactical
plans (short term) and strategic plans (long term).
ORGANIZING
Managers organize resources in order to achieve corporate
objectives. This might include delegating or allocating tasks to
workers to ensure that deadline are met.
CONTROLLING
Managers are responsible for the performance, health and safety of
their teams. Corrective measures should be taken if targets are not
being met.
COMMANDING
Managers give instructions and orders to their teams and
subordinates in order to achieve business objectives. They should
enforces discipline in the workplace to prevent slack and to prevent
non-compliance.
COORDINATING
Managers have the responsibility for ensuring that all departments
strive to achieve the goals of the organization.
 A LEADER VS A
LEADERSHIP
 Motivating & inspiring
others
MANAGER 

Innovators who encourage
others to accept change
Stems from personal
qualities & traits
A leader is someone who influences and  Natural abilities & instincts
inspires others to get things done. Leaders  Believes in doing the right
tend to focus on achieving broader goals or thing
visions with no definite timeframe in mind.  Respected & trusted by
Leadership is the art of influencing, their followers due to
personality
motivating and inspiring others to achieve  Creates & develops a
organizational goals. culture of change
A manager is a person responsible for  Focus on the future
controlling or administering an organization  Risk takers and decision
or group of staff. They tend to focus on makers
 Focus on mission and vision
achieving specific goals within a definite
statements
time frame. Management is the art of  Strategic decision making
getting things done through people.
MANAGEMENT
 Directing & monitoring
others


Problem solvers
Stems for position within
organization
 Skill & qualified for the
role
 Believes in doing things
right
 Not always followed due to
personality status is the
primary driver
 Accepts & conforms to the
routines of the organization
 Planning, coordinating,
organizing, commanding,
controlling and setting
objectives
 Mainly concerned with
processes
Leadership styles refers to the way in which managers and leaders
provide direction, implement organizational plans and motivate
people. There are five main types:
AUTOCRATIC

SITUATIONAL DEMOCRATIC

LAISSEZ-FAIRE PATERNALISTIC

LEADERSHIP STYLES
 An autocratic leader is one who makes all the decisions and prefers
not to delegate responsibility. They believe in command and control.

They avoid discussions with employees that are not involved in decision
making.

Delegation and consultation are non-existent.

AUTOCRATIC Communication is top-down and one way.

It is most likely used when employees are unskilled, inexperienced, lack

initiative or cannot be trusted.

It is suitable during emergency services (police, fire, ambulance,

military or navy).

The success of the organization relies on the ability of the leader.

 Advantages
Ensures there is control and close
oversight within the organization
Quick decision making
Employees have a clear sense of
direction
Effective when deadlines are
imminent or major decisions need to
be made.
ADVANTAGES AND DISADVANTAGES OF
AUTOCRATIC LEADERSHIP
Disadvantages
Takes away initiative and creativity as
employees are not involves in decision
making
Demotivates workers as their ideas are
not valued
Does not nurture future leaders among
employees, ∴ damaging competitiveness
in the long term
Subordinates are usually ineffective if
the leader is absent from work.
PATERNALISTIC
Paternalistic leaders treat
their employees as if they
were family members by
guiding them and acting in
the best interests of their
subordinates.
A positive paternalistic
style occurs when the
leader perceives the
workers as highly capable,
so nurtures and develops
workers.
They have exceptional A negative paternalistic
organizational skills and style occurs when the
build trust with their leader perceives the
teams. There is close workers as less than
supervision. capable, leads by
guidance and control.
The leader is highly Workers in countries like
experienced and Japan and India where
genuinely values their the cultural setting has
workers. The workers are enabled people to work
expected to be loyal and hard out of gratitude for
obedient. their leaders.
ADVANTAGES AND DISADVANTAGES OF A
PATERNALISTIC STYLE
Advantages
A softer form of autocratic leadership which results
in improved staff motivation and lower staff
turnover.
Feedback is invited, so this can improve
relationships at work as employees’ social needs
are emphasized. However they make the decisions
There is often commitment and loyalty to leader
who workers perceive will take care of their
wellbeing.
Disadvantages
Employees can become dissatisfied as their
viewpoints are often ignored (decisions are made
by top management), so it does not help develop
their careers.
Communication is mostly downward
Paternalistic leaders can become too dictatorial
and make poor decision (parent vs leader?)
 A democratic leader is one who involves employees in
the decision-making process.
They consult staff and consider their views before
making any final decision.
Democrats can bring about better morale and job
satisfaction as employees are able to express their
views and have some input into decision-making.
DEMOCRATIC Leaders encourage discussion and employee
participation although they have the final say.
Leaders delegate authority and empower their staff
It is likely to be effective when used with skilled,
experienced and creative employees.
Most effective with skilled, experienced and creative
employees.
ADVANTAGES AND DISADVANTAGES OF A
DEMOCRATIC STYLE
Advantages Disadvantages
Can be motivational as workers feel their opinions Decision making is slower as employees have
and input are valued, thus creating a greater sense greater involvement in the process
of belonging and staff loyalty
The collaborative environment often results in The possibility of a disagreement among internal
better informed solution to challenges and stakeholders during the discussion process can
problems negatively affect day-to-day operations
There is two-way communication, so this encourages Reaching a consensus over decisions can be time
the sharing of ideas in the workplace consuming and costly
Inappropriate for urgent decisions needed during
challenging times faced by the business
 Laissez-faire leaders are those who have minimal direct
input in the work of employees.

They allows subordinates to make their own decisions and

to complete tasks in their own way.

The leader sets objectives but it is up to the employees to

decide how best to achieve these using the resources
available to them.

LAISSEZ-FAIRE Laissez-faire leaders delegate responsibility and

authority to their staff.

Success depends on the aptitude and attitude of the

employees.

Little supervision

Suitable for routine tasks which do not require

managerial supervision and for trusted, highly talented
and self-motivated employees I.e. google
ADVANTAGES AND DISADVANTAGES OF A
LAISSEZ-FAIRE STYLE

Advantages Disadvantages
The freedom given to employees allows them to Individual foal setting could conflict with
excel inn what they do best, without constraints organizational objectives, especially as there is
imposed by management an absence of management control
Provides opportunities for staff with vision and Often criticized for the poor definition of the
intrapreneurial skills role/purpose o management
Autonomy decision making can have positive As management takes a ‘hands-off’ approach,
impacts on staff motivation and staff retention monitoring and control of the organization’s
levels operations become very challenging.
 Situational leadership is a leadership style that, unlike
the others, is not based on any single dominant
approach.
In essence, it is about using the right leadership style
for the right situation.
Situational leadership assumes managers and leaders
are able to change and adopt their style for the right
SITUATIONAL situation.
CLOTS is an acronym for the factors affecting
situational leadership style.
 Culture – What type of culture exists within the organization and what are the
group norms?
 Leader – how much trusts do leaders have in their employees, how
experienced are they as leaders and what is their preferred leadership style.
 Organizational structure – Tall or flat? Big span of control or little?
 Task – What is the tasks difficulty, urgency, and importance? Are the tasks
routine, low skilled or highly complex?
 Subordinates – what are the levels of skills, motivation and unity of the
employees?
ADVANTAGES AND DISADVANTAGES OF A SITUATIONAL STYLE
Advantages Disadvantages

It recognizes he need for leaders to be Most managers and leaders have a

flexible in their style, given the dynamic preferred or natural style, so expecting
nature of business management them to change in their style according
to different situations can be difficult

It is practical and applies across a Employees may have grown accustomed

range of industries and business to a particular leadership style in the
problems workplace, so staff may become
disorientated and unsettled were the
leader to change his/her style
Workers can benefit from the mix of The inconsistent approach can mean the
support from leaders when appropriate, leader loses credibility with the
and directive activities at other times employees.
 Ethics are moral principles that govern a person's behavior
or the conducting of an activity.

HOW DO ETHICAL
CONSIDERATIONS Ethical considerations are based on a leaders personal
values and moral judgement, which in turn determines the
extent to which leaders accept responsibility for ensuring
INFLUENCE ethical conduct for their organization.

LEADERSHIP AND Due to the increasing external pressures for business to act
in a socially responsible manner, there has been greater
MANAGEMENT scrutiny of business activities.

STYLES IN AND Thus, more leaders have been focusing on ethical

ORGANIZATION?
considerations in their decision making and in the ways they
influence others in terms of motivation and productivity.

The leadership styles adopted by business have a direct

effect on the levels of morale, commitment and competence
in the work place; this affects productivity and profitability.
 HOW DO Cultural differences are the various beliefs, behaviors,
CULTURAL languages, practices and expressions considered unique to
members of a specific ethnicity, race or national origin.

DIFFERENCES MAY Organizational cultural differences shape the leadership style

adopted.
INFLUENCE Using a preferred style might nit be appropriate in a foreign
country where language, cultures and lifestyles are different.
LEADERSHIP AND People in different cultures expect different things from

MANAGEMENT leaders.
Knowledge and understanding of such differences can largely
STYLES IN AND affect how managers behave in a cross-cultural situation.
Some countries attend meetings late, other cultures emphasize
ORGANIZATION? on greetings and exchanges of business cards. Lastly, some
cultures like things straight to the facts and others like ideas.