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2.3. Leadership and Management Summary

  • 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 tasksDecision-making role/planning tasksFayol’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 the health of business)Managers as confronters of dilemmasManagers 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 motivatingMeasuring 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 delegatedCauses high morale/motivation among subordinatesAppropriate 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 an 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?

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