Leadership

AH Business 2024/5

Leadership definition & theories

• Leadership is the ability to influence thoughts & behaviours of others to achieve organisation’s goals

• Trait, style, situational

What is trait theory?

• The ability to lead a group is something you are born with, not something you learn

• People should be selected as leader, not trained

• certain immutable traits that cannot be developed and result in a successful leader

Criticisms of trait theory

• Measuring traits objectively is impossible which leads to unfair judgements & may result in inequality in workplaces

• Trait theory usually only focuses on how leader effectiveness is perceived by followers

• Deciding which traits are need for a particular position is hard

• Too many physical/personality traits said to affect the ability to lead

• Too many exceptions in real life to accept these traits as required for a successful leader

• Subjective to situation & organisation the leader operates in

• Focuses more on personality traits more than evidential traits eg. problem solving

Examples of traits that could contribute to effective leadership

• Honesty & integrity: will help others trust their actions/what they say, be inspired

• Risk taking: ability to calculate reward against loss & implement difficult decisions

• Administration & organisation: manage resources, deadlines, info to save time & effiency

• Fairness: value everyone equally so employees trust/like leader, avoid disputes/grievances

• Warmth/caring: genuine concern for others → approachable, easier to work with

• Communication & charisma: inform & explain well, persuade employees to embrace change

• Toughness/assertiveness: pushes people positively

• Confidence/self-reliance: gives faith in ability

• Negotiation: need to resolve disputes & conflict, compromise

What is autocratic style leadership?

• Autocratic leaders define tasks to be carried out, state who will do, ensure tasks are closely supervised

• Comment/discussion from employee not encouraged

• Importance placed on task completion

Advantages of autocratic style leadership?

• Decision making is normally quick as there’s no consultation with staff - useful in crisis

• Tasks & relationships are clearly defined → clear chain of command

• Employees receive direct assistance towards achieving goals

• Useful when work is boring & repetitive

Disadvantages of autocratic style leadership?

• Lack of input from employees means their experience/skill is not utilised

• Creativity & initiative are supressed

• Employees cannot develop to full potential

• High level of supervision is required

• Employee motivation is likely to be poor

What is democratic style leadership?

Democratic leaders allows employees a say in decision making → democratic approach involves much communication between leaders & groups

Advantages of democratic style leadership?

• Utilises employees’ knowledge & experience in decision making

• As employees can contribute, encourages creativity, help solve complex problems

• Involves employees’ morale & motivation as they are involved in decision making

Disadvantages of democratic style leadership?

• Employees may be unable to work with close supervision so less productive

• Mistakes may be made if employees are not skilled in decision-making

• Employees may expect to be involved in all decision-making & feel dissatisfied if excluded from some

• Due to communication & discussion the decision-making process could be lengthy

What is laissez faire style leadership?

• Managers set objectives but leave employees to achieve these in a manner that suits them

• Employees are left completely alone to carry out their work

Advantages of laissez faire style leadership?

• Ensures reasonable targets are set as employees are involved in setting them

• Increases employees’ job satisfaction & motivation by providing greater responsibilities

• Can create a very relaxed work environment

Disadvantages of laissez faire style leadership?

• A lack of direction can lead to objectives not being met

• Workers need to be self motivated for this to work

What is situational theory?

• Situation approach argues that leadership behaviour should differ depending upon the situation & maturity of employees

• Maturity refers to employee’s work experience, ability level & willingness to accept responsibility

• eg. a new employee would relate more to aa directive/autocratic leadership → moving to participative as they settle → to laissez faire as they can work independently

2 ways in which Hersey & Blanchard’s situational approach defines maturity

• Job maturity: referring to worker’s knowledge & skills

• Psychological maturity: referring to workers’ self-image, self-respect, self-confidence

4 styles of leadership identified by Hersey & Blanchard

• Telling

• Selling

• Participating

• Delegating

Telling leadership style: people

• Effective for employees with low maturity who require high levels of direction & guidance

• One way communication from the top

• Used when staff lack experience to make good decisions

Telling leadership style: task

• Places lots of focus on the task, little focus on employee/supervisor relationship

• New employees learning new tasks

• May be used when mistakes in the task would be bad/costly

• Clear explanation and demonstration of the task should be done

Selling leadership style: task

• High focus on both task & relationship

• When the task involves learning new skills, the reason behind the task/decision is explained and discussion is encouraged

Selling leadership style: people

• Used with who have some ability but lack commitment or willingness to do the job

• Two-way communication begins

• Leader encourages employee to take ownership of the task

Participating leadership style: people

• For employees who have ability but lack confidence or motivation

• Decision making is shared, two-way communication

Participating leadership style: task

• Leader focuses more on the relationship than the task

• Suitable for tasks that requires teams to make decisions together, give input and creativity

Delegating leadership style: people

• Appropriate for employees who are highly competent and committed

• Leader provides little direction/support – allowing them to take responsibility

• Suitable for mature employees with problem solving skills

Delegating leadership style: task

• Leader provides the resources and maintains authority but allows the employee to complete the task

What factors influence leadership style?

• Time available: urgency = less discussion, more autocracy needed

• Respect & trust: allows for democratic/free reign work

• Info available: if not, autocratic to guide employees

• Skills of staff: highly competent = less need for supervision

• Internal conflicts: direct/dictatorial input to resolve

• Nature of task: complicated tasks require direction, creative task could be stifled by autocratic

• Leader’s personality: may naturally lead in one style

• Group/worker personality: some need more instruction, prefer free reign

• Group size: democratic style confuses larger groups

• Organisation culture: atmosphere can encourage specific styles, traditional/informal

• Financial constraints: tight budgets to control spending/regulate