AS Business
Management and leadership
Objectives
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Describe the main functions of managers
Analyse the importance of good management to the
success of a business
Analyse the differences between McGregor’s
Theory X and Y
Recognise the key differences in management styles
Evaluate the appropriateness of these styles to
different business situations
Explain the significance of informal leadership
Analyse the four competencies of emotional
intelligence
Manager

A manager is responsible for setting objectives,
organising resources and motivating staff so that the
organisation’s aims are met
The functions of management – what
managers are responsible for
Setting objectives and planning
 Organising resources to meet the objectives
 Directing and motivating staff
 Coordinating activities
 Controlling and measuring performance
against targets
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Management roles
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Henry Mintzberg (The Nature of Managerial Work,
1973) identified ten roles common to the work of all
managers
These are divided into three groups,
 Interpersonal roles
 Informational roles
 Decisional roles
http://www.youtube.com/watch?v=_NRWtd_SiU
8&feature=related
Managerial roles according to Mintzberg
Role
Description
Example
1. Interpersonal roles
Figurehead
Symbolic leader
Delivering important presentations
Leader
Motivating staff
Delegating to subordinates
Liaison
Linking with other managers and other
organisations
Leading meetings with staff, meeting leaders from
other organisations
2. Informational roles
Monitor (receiver)
Collecting data
Receiving information from other managers
Disseminator
Sending information
Communicating to staff
Spokesperson
Communicating information
Presenting reports to groups of stakeholders
Entrepreneur
Seeking new opportunities to develop
business
Encouraging new ideas and putting these into
effect
Disturbance handler
Responding to changing situations
Taking decisions on how the business should
respond to threats
Resource allocator
Deciding on spending and resource
allocation
Deciding on staffing levels for departments
Negotiator
Representing organisation in
negotiations
Conducting negotiations and building links with
other organisations
3. Decisional roles
Leadership
 Leadership is
the art of motivating a
group of people towards achieving a
common objective
Leadership positions in business
 Directors
 Manager
 Supervisor
 Team
leader
 Worker’s representative
Leadership styles
Leadership (or management) style refers to the way
in which managers take decisions and communicate
with their staff.
There are three distinct leadership styles,
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Autocratic (or authoritarian)
Democratic
Laissez-faire
Leadership styles
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Autocratic leadership is a style of leadership that
keeps all decision making at the centre of the
organisation
Democratic leadership is a leadership style that
promotes the active participation of workers in
taking decisions
Laissez-faire leadership is a leadership style that
leaves much of the business decision making to the
workforce – a ‘hands-off’ approach and the reverse
of the autocratic style
Leadership styles
Style
Main features
Drawbacks
Possible
applications
Autocratic

leader takes
all decisions
 supervises
workers closely
 only one-way
communication
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de-motivates
staff who want
to contribute
and accept
responsibility
 decisions do
not benefit
from staff input
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Where and
when quick
decisions are
needed e.g.
emergency
situations
Leadership styles
Style
Main features
Drawbacks
Possible
applications
Democratic

worker
participation
encouraged
 two-way
communication
used, which
allows feedback
from staff
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consultation
with staff can be
time consuming
 on occasions,
quick decision
making will be
required
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an
experienced
and flexible
workforce will
be likely to
benefit most
from this style
Leadership styles
Style
Main features Drawbacks
Possible
applications
Laissez-faire
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managers
delegate
virtually all
authority and
decisionmaking
powers
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workers may
not appreciate
the lack of
structure and
direction in
their work – this
could lead to a
loss of security
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May be
appropriate in
creative
industries
where experts
are likely to
arrive at
inventions and
solutions
McGregor’s Theory X and Y
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According to Douglas McGregor (1950), one of the
most important determinants of leadership style is
the attitude of managers towards their workers
McGregor identified two distinct management
approaches to the workforce and he called these,
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Theory X
Theory Y
McGregor’s Theory X and Y
Theory X managers believe Theory Y managers believe
that workers
that workers
 dislike
work
 will avoid responsibility
 are not creative
 enjoy
 Autocratic
 Democratic
style
leadership
their work
 will accept responsibility
 are creative
style
leadership
The ‘best’ leadership style – it depends
on many factors
It is important to remember that there is no one
right or wrong way of managing people, but there
is an appropriate style for any situation.
Democratic leadership – involving participation and
two-way communication – is increasingly common,
for a number of reasons. Working people are
better educated than ever before and have higher
expectations of their experiences from work – they
expect higher-level needs to be partly satisfied at
work.
The ‘best’ leadership style – it depends
on many factors
Leadership – what is the best leadership
style? It depends on the ‘situation’!
The ‘best’ leadership style – it depends
on many factors
Informal leadership
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An informal leader is a person who has no
formal authority but has the respect of
colleagues and some power over them
Emotional intelligence (EI)
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Emotional intelligence is the ability of
managers to understand their own emotions,
and those of the people they work with, to
achieve better business performance
Emotional intelligence: 4 competencies
Daniel Goleman is the best-known researcher into EI. He has
suggested that there are four main EI competencies that
managers should try to develop and improve on:
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Self-awareness – knowing what we feel is important and using
that to guide decision-making
Self-management – being able to recover quickly from stress,
being trustworthy and conscientious, showing initiative and selfcontrol
Social awareness – sensing what others are feeling, being able to
take their views into account and being able to ‘get on’ with a
wide range of people
Social skills – handling emotions in relationships well and
accurately understanding different social situations; using social
skills to persuade, negotiate and lead
Management and Leadership
Missing words
The management guru Peter Drucker once said that ‘Managers
do things right; leaders do the right thing’. In other words
managers plan, organise and __________________, to make
sure that ___________are achieved. Leaders decide what
those goals should be (and good leaders set the right goals).
But there are other differences between leaders and managers.
The main one, perhaps, is how well staff respond to the person.
An effective leader _____________ people to follow him or her.
A manager may only be able to get someone to do something
by a threat; a leader will be followed.
Missing Words: goals, inspires, supervise
Management and Leadership
Missing words
The term leadership is often used interchangeably with the
term _______________________ but there are subtle
differences between the meanings of these two words. To
manage is to plan, co-ordinate and command whereas to lead
is to inspire people to achieve a common purpose. An
__________________________ leader gives _______________
which he/she expects to be followed precisely whereas a
__________________________ leader is one who
____________________ employees to make decisions.
HINT: words from democratic, orders, empowers,
management, autocratic
Management and Leadership
True or false?
Democratic is the best style of leadership.
 An autocratic leader tends to keep decision
making power at the top of the hierarchy
 Communication skills are not needed for
autocratic leaders
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Management and Leadership:
Multiple Choice
Henry Mintzberg identified ten roles common to the work of managers and divided
those roles into three groups. Which of the following is an example of an
interpersonal role?
a figurehead
b resource allocator
c entrepreneur
d disseminator
Encouraging new ideas from within the business is an example of a manager
performing which management role identified by Mintzberg?
a liaison
b resource allocator
c spokesperson
d entrepreneur
Management and Leadership:
Multiple Choice
A manager who takes decisions on their own with no discussion or consultation is
using which type of leadership style?
a autocratic
b democratic
c paternalistic
d laissez-faire
In which of the following situations is an autocratic leadership style likely to be
most appropriate?
a when dealing with highly qualified employees undertaking research and
development
b with employees who demonstrate a Theory Y approach to work
c in an emergency situation
d where the manager wants employees to contribute ideas for improving the
business
Management and Leadership:
Multiple Choice
A manager who provides very little input into the work to be undertaken by
workers is using which type of leadership style?
a autocratic
b democratic
c paternalistic
d laissez-faire
A Theory X manager, according to McGregor, views workers as being:
a creative, prepared to accept responsibility and liking work
b lazy, disliking work and unprepared to accept responsibility
c essentially creative, but unprepared to accept responsibility
d none of the above.
Management and Leadership:
Multiple Choice
Which of the following is the most likely benefit of a democratic
leadership style?
a It speeds up decision making.
b It allows workers to perform tasks in the way they think is best.
c It should improve motivation of staff .
d It allows managers to manage without employee interference.
An informal leader is a person who has:
a no power over colleagues
b no useful role within an organisation
c no formal authority
d no leadership qualities.
Management and Leadership:
Multiple Choice
Emotional intelligence is best defined as:
a the ability of managers to exercise control over subordinates
b the ability of managers to solve complex business problems
c the ability to undertake academic study
d the ability of managers to understand their own emotions and those of their
employees.
Daniel Goleman suggested there are four main EI competencies that managers
should try to develop. Which of the following is not one of those competencies?
a self-management
b social awareness
c social skills
d lateral thinking