Business Management
Previously…
Objective
Essential Questions
 We described
 What is management?
management roles,
functions, and skills
of good managers.
 What are the specific
tasks (functions) of
managers?
 What are the
responsibilities
(leadership roles) of
managers?
Today’s Lesson
Objectives
Essential Question
 We will analyze
 What are the benefits /
leadership &
management styles in a
variety of business
situations.
 We will complete a selfassessment of personal
traits to determine
leadership styles.
limitations of different
leadership & management
styles?
Think About It…
 What makes a good manager?
 Are managers & leaders the same thing?
 Think of a good manager/leader you have
worked with. What were some of their
attributes that made them good?
What’s the difference?
Management
 The skills used to
efficiently channel
resources and resolve
conflict
Leadership
 The skills that
motivate others to
accomplish common
goals
How do you become a leader?
Let’s consider leadership theories…
someone may become a leader by:
Authority
Power
Charisma
Authority
 This type of leader has
been given the right to
achieve the objectives or
goals of an organization.
 This leader’s power is
obtained via appointment.
 Managers are the
appointed leaders of a
business.
Power
 This type of leader has
extensive knowledge or
expertise in the field.
 This leader’s power is
derived from respect.
 Experts in finance, for
example, are the respected
leaders of their field.
Charisma
 This type of leader is able
to bring others together
and motivate them,
usually for a cause.
 This leader’s power is
derived from emotion.
 Many successful activists
earned the spotlight
because of their charisma.
Regardless of how someone obtained their leadership, each leader
demonstrates characteristics of a leadership style.
What’s your style? Take the survey!
Leadership Styles Survey
 All leadership styles are good – one is not more
important or better than another.
 It is important to understand leadership styles
in order to be able to work with all personality
types effectively.
 In your group, come up with 3 attributes of
your group’s leadership style and a famous
person who might share the same style.
Autocratic
 Characterized by giving
clear and precise
directions as to what is to
be done
 Considered “classic”
leadership
 Managers retain as much
power and decisionmaking as possible
Using Autocratic Leadership
Most Effective When…
Should Not Use When…
 New, untrained staff
 Staff becomes tense,
fearful, or resentful
 Detailed orders and
instructions
 Limited time to make a
decision
 Manager’s power is
challenged by staff
 Staff expects their
opinions to be heard
 Low staff morale or
productivity
 High turnover and
absenteeism
Democratic
 Characterized by
encouraging workers to
share their ideas
 Allows employees to make
some decisions or give
input
 Keeps staff informed
about everything that
affects their work
Using Democratic Leadership
Most Effective When…
Should Not Use When…
 Want to provide opportunities
 Not enough time to get




for staff to develop
Want to encourage job
satisfaction
Large, complex problems
Changes must be made or
problems solved that affect the
staff
Want to encourage team
building and participation
everyone’s input
 Easier or more cost-effective
for the manager to make the
decision
 Can’t afford mistakes
 Staff safety is a critical
concern
Open
 Also known as Laissez-
Faire leadership
 Characterized by giving
little or no direction to the
employees
 Employees are trusted to
make decisions and
resolve problems on their
own.
Using Open Leadership
Most Effective When…
Should Not Use When…
 Staff is highly skilled,
 Staff feels insecure that the
experience, and educated
 Staff have pride in their
work and the drive to be
successful
 Outside experts or
consultants are used
 Staff is trustworthy
manager is not accessible
 Manager cannot provide
regular feedback
 Manager is unable to thank
staff
 Manager does not
understand his/her own
responsibilities
Leadership Style Variations
Situational
 A good leader changes
intuitively between styles
according to the people
they work with and the
current situation at hand.
 Select a style that best fits
the circumstances of the
moment!
Given the four situations on your worksheet, decide which
style of leadership (autocratic, democratic, or open) would be
most effective.
Closing Task
WRITE YOUR CLOSING TASK ON THE BACK OF YOUR
‘LEADERSHIP STYLES’ WORKSHEET BEFORE TURNING IT IN.
1) What is the difference between
management and leadership?
2) List the three styles of leadership.
3) What is the best style of leadership?
Explain your answer.