1.4.5 - Leadership

What is leadership?

The ability to influence and direct people in order to meet the goals of a group

What is management?

The process through which company resources are used and decisions made in order to meet the objectives of the firm

What do managers do?

• Lead (communicate objectives and direct subordinates to achieve goals)

• Make decisions (allocate resources and day-to-day running of businesses)

• Reviewing (monitoring performance against objectives)

What is an autocratic leadership style?

The leader decides without consultation

For example, in the army when quick decisions are required in battle

What is a democratic leadership style?

The leader consults the team but ultimately makes the final decisions

For example, a skilled workforce where each team member can make strong contributions

What is a paternalistic leadership style?

The leader acts in a fatherly way towards the workforce - making decisions based on the needs of the workforce as well as the business

For example, often family or smaller organisations with a more caring style of leadership

What is a laissez-faire leadership style?

Means ‘to leave alone’

The leader allows the team to make final decisions

For example, experienced and competent staff are given the freedom to make decisions themselves