2.3 Leadership and Management

Functions of management

Planning, Organizing, Directing, Controlling,

Leadership:

Leaders, are people who are followed, who have a vision of the future

Differences between leaders and management:

• Leadership: 24 hours a day long term perspective, Broader role ask what and why questions

• Managment: 9 to 5 short term perspective, More specific role asks when and how questions

leadership styles

• Autocratic • Paternalistic • Democratic • Laissez-faire • Situational

Autocratic

Autocratic leadership (also known as authoritarian leadership) exists when managers/leaders: • Keep control of information. • Make major decisions alone. • Instruct others.

Paternalistic

Paternalistic leadership is broadly autocratic but considers the interests of the workforce when making decisions (takes notice of the views expressed by subordinates). • Retains control over most decision-making. • Delegates minor decisions (and little freedom) to subordinates.

Democratic

It entails operating a business according to decisions agreed by the majority (formally through a voting system or through informal discussions). It encourages some or all of the following: • The leader delegates and encourages decentralization. • The leader and subordinates discuss issues and employee participation is actively encouraged.

Laissez-faire

Laissez-faire leadership takes place when managers allow subordinates freedom to make their own decisions.This type of leadership will: • Have minimal direct input. • Allow staff to make decisions. • Rely on high levels of staff motivation

Situational

Situational leadership is a leadership style that, unlike the others above, is not based on any single dominant approach. In essence, it is about using the right leadership style for the right situation. It take the best parts of every different leadership style.