Managing Change
Key Influences on the Change
Process: Leadership
Guidelines for bureaucrats: (1) When in charge, ponder. (2) When
in trouble, delegate. (3) When in doubt, mumble.
James Boren
Managing change is about leading change.
Shona Brown
All leadership, management or vision will become useless if it
becomes static.
Paul Corrigan
BUSS4.9 Leadership
In this topic you will learn about:
The meaning of leadership
 The range of leadership styles
 Assessing internal and external factors
influencing leadership styles
 The role of leadership in managing change
 Assessing the importance of leadership

Do they inspire you to achieve through leadership?
BUSS4.9 Leadership
The Meaning of Leadership
‘The only definition of a leader is someone who has followers’
Peter Drucker (1909 – 2005)
‘Management is the art of achieving that certain things are done through people’
Mary Parker Follett

Leadership is the ability to influence and direct people in order to meet the goals of a
group.

Management is the process through which company resources are used and decisions
made in order to meet the objectives of the firm
It is important to distinguish between leaders and managers. This is difficult to do.
In essence, leaders are those people that can inspire and motivate people to meet
objectives; managers will set objectives and decide how to go about achieving them.
Often leaders and managers are one and the same person.
Leadership – the ability to
inspire people to follow
BUSS4.9 Leadership
The Range of Leadership Styles
Kurt Lewin (1890 – 1947) put forward three different styles of leadership:
Autocractic (Authoritarian) – the leader makes a decision without consultation e.g.
In the army when quick decisions are required in battle
 Democratic – the leader consults his team but makes the final decision e.g. A skilled
workforce where each team member can make strong contributions
 Laissez-Faire (to leave alone) – the leader allows his team to make decisions e.g.
Experienced and competent staff given freedom to make decisions themselves

To these we could add:
 Paternalistic – the leader acts in a fatherly way towards the workforce – making
decisions based on the needs of the workforce as well as the business e.g. Often family
or smaller organisations with a more caring style of leadership,
 Bureaucratic – leaders work to rules and regulations (‘by the book’) e.g. In
bureaucratic organisations where the culture is very much led by the rules
However, there are numerous other leadership styles. What is important is that the style
of leadership is appropriate to the situation
BUSS4.9 Leadership
The Range of Leadership Styles
Tannenbaum and Schmidt’s Continuum Theory (1973)
The Continuum Theory looks at 7 levels of delegation from 1 (no delegation) to 7 (highly delegated)
Use of authority by the manager
Area of freedom for subordinates
1
1.
2.
3.
4.
5.
6.
7.
2
3
4
5
6
7
Manager takes and announces decisions
Manager sells decision
Manager presents decision with ideas and invites questions
Manager suggests provisional decision and invites discussion
Manager presents the situation, gets feedback and then decides
Manager explains, defines parameters and asks team to decide
Manager allows team to develop options and decide on action based within managers
limits
BUSS4.9 Leadership
The Range of Leadership Styles
Blake and Mouton’s Country Club Management (1964)
1,9
9,9
Concern for People
1,9 Country Club
Management
9,9 Team
Management
5,5 Organisation
Man Management
1,1
1,1 Impoverished
Management
9,1 Authority
Obedience
9,1
Concern for Production
The grid shows five leadership styles with the first number showing the
task orientation (Production) and the second the employee orientation
(People) e.g 1,9 means low concern for production and high concern for
BUSS4.9 Leadership
people.
Factors that Influence Leadership Styles
Internal Factors
There are a number of internal factors that influence the style of leadership:

The expertise and experience of the workforce

The skills required for the work to be done

The personal traits of the leader

The power given to the leader

The time frame associated with the task to be undertaken
What traits would you look for in a leader?
BUSS4.9 Leadership
Factors that Influence Leadership Styles
External Factors
There are a number of external factors that influence the style of leadership:

The political and legal environment

The economic environment

The social environment

The technological environment

Changing nature of the industry
Do leaders need to lead
by example?
Discuss how each of the above external factors as studied
from 4.2 to 4.6 might affect leadership styles
BUSS4.9 Leadership
The Role of Leadership in Managing Change
Change management requires strong leadership. There are numerous examples that
candidates could use to provide examples of this.

Setting clear objectives to drive the change

Communicating with employees to gain commitment to change

Allocation of sufficient resources to aid change

Instilling a change culture
You will learn more about culture in 4.10 and the role of project champions in 4.12
BUSS4.9 Leadership
Assessing the Importance of Leadership
Effective leadership is at the heart of any organisation, whether it be a school/college or
a FTSE 100 company.
A company looks to its leaders for a number of reasons:

Vision

Support for the welfare of the workforce

Provision of a clear sense of direction for the company

Inspiration for the company

A figure to give guidance and to be a mouthpiece to the external world
BUSS4.9 Leadership
The Range of Leadership Styles
Activity
There are numerous theories regarding leadership – other theories include those of:

Douglas McGregor – Theory X and Theory Y Managers

Fred Fiedler – Contingency Model

John Adair – Action Centred Leadership
Look at the work of two theorists from the above and those that you have looked at in
this Unit. Your task is to research a chief executive of one of the UK’s FTSE 100 firms.
How do these leadership theories apply to your chosen leader? Write a short report
(200 words) giving examples of leadership style and justifying your findings.
Before attempting the essay on the next slide read this
article on the difference between leaders and managers.
BUSS4.9 Leadership
Essay

Warren Bennis, a distinguished expert in the field
of leadership styles states "There is a profound
difference between management and leadership,
and both are important. To manage means to
bring about, to accomplish, to have charge of or
responsibility for, to conduct. Leading is
influencing, guiding in a direction, course, action,
opinion. The distinction is crucial“
With reference to businesses you have studied to
what extent do you believe that leadership, rather
than management, is key to success when
managing change.
BUSS4.9 Leadership