IB Business and
Management
2.4 Leadership and
Management (HL)
Trait and Situation Theories
• Situational leadership theory presumes that
different styles of leadership will be better in
different situations. This implies that leaders
need to be flexible enough to adapt their
leadership to changing situations.
• Trait theory argues that some individuals are
born with traits (personal characteristics) that
make them natural leaders. However, these
traits will vary from person to person and
there is no one particular trait, which on its
own, will make a successful leader.
In Leadership in Organisations
(1997), Gary Yuki
suggests that successful leaders need to have the following
traits:
• dominance (the desire to influence and lead others)
• adaptability - able to adapt to different situations easily
• energetic
• persistence - the will to carry things through and
complete them
• assertiveness - the ability to assert your will onto others
• reliability and dependability
• ambition
• self-confident and tolerant to high levels of stress
Task
• Different researchers and writers on
leadership always come up with
different lists of the key qualities of
leaders.
• Write your own list of the most
important qualities of leaders (Max 10)
Contingency approach to
leadership (Fred Fiedler 1967)
• Fiedler is credited with helping move
researchers from concentrating on the
traits of leaders to studying leadership
styles and behaviours.
• He said that appropriate leadership
style in any situation is dependent, or
contingent upon elements unique to
that situation.
What Fiedler said……
Fiedler suggested that the appropriate
leadership style is contingent upon three
main factors:
• The characteristics of the leader whether they are predominantly
relationship-driven or task-driven
• The situation - the nature of the task such
as its difficulty and changeability
• The nature of the subordinates - the
authority the leader has over them and
the level of mutual respect that exists
BLAKE AND MOUTON
Blake and Mouton’s Model
• The Managerial Grid is based on two
behavioral dimensions:
• Concern for People – This is the
degree to which a leader considers
the needs of team members, their
interests, and areas of personal
development when deciding how best
to accomplish a task.
• Concern for Production – This is the
degree to which a leader emphasizes
concrete objectives, organizational
efficiency and high productivity when
deciding how best to accomplish a
task.
Blake Mouton Managerial Grid
People or Task focused
1:9 Country club management maximum
concern for people, minimal concern for
product, ‘friendly’ manager, lower
productivity, conflict ignored
1:1 Impoverished mimimal concern for
people and product, laissez faire, little
effort or involvement
9:1 Authority Obedience
management/Produce or Perish minimum
concern for people, purely task focused,
people ‘a number’, autocratic, maximum
control
9:9 Team Management ‘ideal’ style, maximum
concern for people and product, leader
gets involved with the people
5:5 Middle of the Road a balance of
people/product focus, some control but
not too much, can fail when high
productivity is important
Blake’s Grid
Categorise some teachers in terms of
Blake’s grid
LIKERT
Likert's Leadership Styles
Autocratic
Exploitive
authoritative
Democratic
Benevolent
authoritative
Consultative
Participative
Task
• Watch the video to show examples of
Likert’s 4 leadership styles.
• Can you think of any other examples?
Likert's Leadership Styles
1. Exploitive authoritative
- the leader has a low concern for people
- uses fear
-based methods such as threats to achieve
conformance
-Communication is almost entirely one-way
2. Benevolent authoritative
- the leader has some concern for people
- the leader now uses rewards to encourage
appropriate performance
- listens more to concerns of subordinates
- most major decisions are still made by the leader.
Likert's Leadership Styles
3. Consultative
- the leader is making genuine efforts to
listen to the ideas of subordinates.
- major decisions are still largely made by
the leader.
4. Participative
- the leader makes maximum use of including
subordinates in decision-making.
TANNENBAUM AND SCHMIDT
Tannenbaum Schmidt
Continuum of Leadership
KEY FUNCTIONS OF
MANAGEMENT
What is the difference between
Leadership and Management?
• Discuss your ideas
What does managing involve?
What does leadership involve?
Watch the video clip and see if this helps
Functions of Management
• This refers to the responsibilities and
tasks carried out by managers:
• Set objectives
• Organise how things are to be done
• Command, co-ordinate and communicate
with others
• Develop and motivate employees
• Measure and evaluate performance
against objectives
Characteristics of good
managers
• A vision and sense of direction as to
where the business should be going
• Innovation and the creation of new
ways of doing things
• Dedication and commitment
• Ability, self-belief and qualities that
promote support from others.
HENRI FAYOL
Henri Fayol
• French management
theorist
• Wrote during the
early 20th century
• Identified the key
tasks of
management
regardless of their
function
5 Functions of Management
•
•
•
•
•
to forecast and plan
to organize
to command or direct
to coordinate
to control
14 Principles of good Management
• Division of work. This principle is the same as Adam Smith's
'division of labour'.
• Authority. Managers must be able to give orders.
• Discipline. Employees must obey and respect the rules that
govern the organization.
• Unity of command. Every employee should receive orders from
only one superior.
• Unity of direction. Each group of organisational activities that
have the same objective should be directed by one manager
using one plan.
• Subordination of individual interests to the general interest. The
interests of any one employee or group of employees should not
take precedence over the interests of the organization as a
whole.
• Remuneration. Workers must be paid a fair wage for their
services.
14 Principles of good Management
• Centralisation. Centralisation refers to the degree to which
subordinates are involved in decision making. The task is to find
the optimum degree of centralisation for each situation.
• Scalar chain. The line of authority from top management to the
lowest ranks represents the scalar chain. Communications should
follow this chain. Cross-communications can be allowed if agreed
to by all parties and superiors are kept informed.
• Order. People and materials should be in the right place at the
right time.
• Equity. Managers should be kind and fair to their subordinates.
• Stability of tenure of personnel. High employee turnover is
inefficient.
• Initiative. Employees who are allowed to originate and carry out
plans will exert high levels of effort.
• Esprit de corps. Promoting team spirit will build harmony and
unity within the organization.
CHARLES HANDY
Charles Handy (b. 1932)
• Renowned for being
one of Britain’s
greatest
management gurus
• Responsible for the
‘wonderful’
Shamrock
organisation theory
What Charles Handy Says…
Key Characteristics of
Managers
• Intelligence
• Initiative
• Self-assurance
Key Roles of Managers
• General Practitioners
• Confronters of
dilemmas
• Balancers of cultures
Good managers require the ‘helicopter factor’
and should not ‘micro-manage’
What does this mean?
PETER DRUCKER
Peter Drucker
• Peter Drucker is one of
the most influential
writers on
management.
• Drucker saw people as
a resource, not a cost,
and believed that the
workforce should be
empowered to create
better motivation and
customer satisfaction.
• He published 33
management books
during his working life.
Managers must be able to….
manage by objectives
allow risk taking at all levels of the organisation
make strategic decisions and organise tasks and people
build teams and measure performance against
organisational objectives
• communicate information quickly and clearly and
motivate employees to gain participation and
commitment
• see the business as a whole and integrate his or her
function within it
• to relate the product and industry to the external
environment and see economic, political and social
developments on a global scale
•
•
•
•
Management by Objectives
• Management by Objectives (MBO) refers
to the process of managers and
employees agreeing on objectives for the
organisation
• Drucker urged that targets should be
agreed after discussion, not imposed
from above.
• This ensures employees understand and
are committed to the organisation's
objectives.
MBO Process