2.3.

Leadership and Management

 Key function of management

 Managers have 3 major tasks/roles:

 Interpersonal role/routine tasks

 Dealing with employee-related issues

 Communicating with external stakeholders

 Other set/recurring tasks – meetings, staff appraisal, etc.

 Informational role/communication tasks

 Decision-making role/planning tasks

 Fayol’s Theory

 Management plans, organizes, commands, coordinates,

and controls business activities

 Need for division of labor, specialization, military-like

structure, authoritarian management, unity in command, equity,
and morale

 Charles Handy’s Theory

 Managers are intelligent, have initiative and are self-

assured

 Theory of Management

 Managers as general practitioners (deal with health

of business)

 Managers as confronters of dilemmas

 Managers as balancers of cultural mixes

 Helicopter factor – need to rise and see the bigger picture

 Drucker’s Theory

 Encouragement of decentralization
  Managers have to:

 Set organizational objectives

 Organizing tasks and people

 Communicating and motivating

 Measuring performance

 Developing people

 Leadership vs. management

 Leadership

 Process of influencing and inspiring others to achieve goals

(usually with broad goals and no time frame)

 Management

 Process of problem solving and decision making as well as

planning, organizing, budgeting, and controlling (usually with
specific goals and definite timeframe)

 Time and devotion – leadership is a 24 hour job

 Roles and responsibilities – leaders innovate, managers

administer

 Influence on others – leaders uses emotion, managers rationalize

 Vision – leaders have them

 Leadership styles

 Autocratic (authoritarian)

 Makes all decisions, doesn’t delegate tasks or responsibility

 Appropriate when workers are unskilled, unmotivated

 No feedback from subordinates as their

opinions/suggestions are ignored (alienates workforce)

 Democratic
  Involves subordinates in decision-making process

 Better morale and motivation among employees, better

decisions

 Appropriate when manager can’t always be around,

employees are competent

 Not suitable for very large workforce

 Decision-making may take a long time

 Laissez-faire

 Decision-making and authority is delegated

 Causes high morale/motivation among subordinates

 Appropriate for situations where creative ideas are

important, subordinates are competent, skilled, and motivated

 Decision making and time taken to accomplish tasks may

take long due to lack of supervision

 Situational leadership (contingency management)

 Not based on single approach

 Using right person and the right style for the right situation

 CLOTS – factors that affect situational leadership

 Culture – culture/group norms in organization

 Leader – how experienced/trusted are leaders

 Organization – tall or flat hierarchical structure

 Task – to what extent is task

difficult/urgent/important?

 Subordinates – what is level of skill/motivation/unity

of members? how many employees are there?