Business Studies
Class test: Management & Leadership
Time: 80 Min - Marks: 60
South Africa’s leadership crisis
by Piet Naudé, 03 September 2012,
IT MIGHT be the result of a bad cold, but I have a deep sense that our country cries out for decisive leadership at the moment.
I refer randomly to the shock of the auditor-general’s report on financial mayhem in local government; the collapsed feeding
schemes in rural schools; the non-delivery of text books to our vulnerable learners; hooligans in Kuruman who keep a generation
of kids out of school; the Marikana massacre by our democratic state’s own police; and the lack of will from businesspeople to
play a more pronounced role in the socio-political development of our nation.
Many people have a sense of disorientation. It is as if one cannot take all the information in. A certain numbness sets in.
Increasingly, we lose our energy as we stagger from one crisis to the other – not knowing if the horror of today might pale in
comparison with what might follow next week.
If a business or a country does not have a clear vision of what is to be achieved, the danger exists that it becomes stuck in the
operational problems of "today". It runs from one urgent matter to the next, working frantically to keep its head above the
water, but in the meantime it has lost direction, but would not know it.
In today’s competitive environment, a lack of a clear future shape will almost inevitably mean others will overtake you as they
orientate themselves toward opportunities not yet seen by yourself. I am not talking feel-good, fuzzy vision statements that
appear on marketing material: I am talking hard core vision, backed by clear implementation plans that stretch everyone far
beyond their current comfort zone.
One could say — despite all the criticism — that South Africa’s recently announced 2030 development plan is the map towards
fulfilling our vision. Let us for a moment accept this is indeed the case, and most reasonable South Africans buy into the vision.
Then comes the second dimension of leadership: execution, deeds, tangible results, operational efficiency, project management
within budget and on time, expertise to actually do the job, and whatever other words one can use to say: "Make it happen!"
This is the weak point in our system. South Africans make plans and our government loves indabas and breakaways to think up
new plans and appoint commissions to oversee their development. But there is no decisive leadership execution – mostly due to
incapability’s and incapacities.
The result is that we actually stand still and in some cases go backward. Planning is not the problem. Money is not the problem.
The people who should do the job are the problem. They draw payment each month. They are quick to demand more. But they
fail in action.
Here is where the third dimension of leadership comes in: values. I am talking about moral and work values. A moral value like
honesty or trustworthiness means nothing unless it determines and shapes conduct. You do not know the values of a local
government or business by reading their so-called values-list. You "see" the values in your interaction with them. You know
quickly whether they walk the talk.
That South Africa and the world live in the midst of a value crisis has been noted by many. The moral character of our leaders is
questioned as newspapers week after week tell us the stories of self-enrichment and corruption. The very moral fibre of our
president has been questioned many times. In the private sector, the world’s banking system has proven itself to be morally
bankrupt, and had to rely on taxpayers to bail them out of their risky business practices.
In short: we may have a vision and a plan. But we do not have the leadership to execute the plan, nor the right values to shape
our actions.
Weak leadership slowly extinguishes the energy and soul of a nation or a business. Let us stand up and be counted. Bad things
happen when good people do nothing.
• Naudé is the former head of the business school and currently deputy vice-chancellor: academic at the Nelson Mandela
Metro University in Port Elizabeth. He writes in his personal capacity. This article is to inform and educate, not to advise.
1.
Discuss the difference between a manager and a leader.
[4]
2.
Would you say, according to the politician’s current performance, Piet Naudé is implying they are leaders or
managers? Substantiate by quoting a sentence from the case study.
[3]
3.
Define Authoritative leadership style.
4.
Discuss communication as a function of management/leadership and use a scenario from the case study
above as your example.
[5]
5.
Discuss/define motivation as a function of management/leadership.
[4]
6.
Discuss/define decision-making as a function of management/leadership.
[4]
7.
Looking at the case study above, Piet Naudé is saying our country is crying out for a certain type of leader.
[3]
7.1 NAME one leadership style that would be the best way to turn the current situation around. (Excluding
situational approach)
[2]
7.2 Discuss one leadership style that is most appropriate for our politicians to be equipped with to run/lead
our country towards its goals. Substantiate your choice by relating it to the case study. (Excluding
situational approach)
[8]
8.
“The result is that we actually stand still and in some cases go backward. Planning is not the problem. Money is not the
problem. The people who should do the job are the problem. They draw payment each month. They are quick to demand
more. But they fail in action.”
8.1 Looking at the above quote from the case study, name the type of leadership style that currently seems
to be failing? (Excluding situational approach)
[4]
9.
“If a business or a country does not have a clear vision of what is to be achieved, the danger exists that it becomes stuck
in the operational problems of "today".” This quote would imply that a country needs to be run like a business,
which would further mean that a politician would need to have certain entrepreneurial qualities in order to
run it like a business. Name and briefly explain any five suitable entrepreneurial qualities.
[15]
10.
Discuss “The situational approach” to leadership.
[5]
11.
Discuss “Laissez faire” as a type of leadership style.
[3]
Business Studies
Class test: Management & Leadership
Time: 80 Min - Marks: 60
1.
Discuss the difference between a manager and a leader.
[4]
A manager is appointed in a position of authority which enables him to insist on people doing as he/she instructs.
A leader has the expertise to make people aware of the advantages of pursuing a certain course of action, thereby
creating a desire in people to follow him/her to achieve a common goal.
2.
Would you say, according to the politician’s current performance, Piet Naudé is implying they are leaders or
managers? Substantiate by quoting a sentence from the case study.
[3]
He is implying they are managers, “In short: we may have a vision and a plan. But we do not have the leadership to
execute the plan, nor the right values to shape our actions.”
“IT MIGHT be the result of a bad cold, but I have a deep sense that our country cries out for decisive leadership at
the moment.”
3.
Define Authoritative leadership style.
[3]
Autocratic: An autocratic leader seldom allows for input from subordinates and makes all decisions. In certain
circumstances this may be the best approach; if, for example, there is a crisis and quick decision making is required
to solve a problem or to implement a strategy that may not be popular with all staff members. The disadvantage of
an autocratic style is that employees often have a low morale as they feel undervalued by the manager
4.
Discuss communication as a function of management/leadership and use a scenario from the case study
above as your example.
[5]
 Communication refers to the transfer and receiving of ideas and attitudes between management and workers,
but also between the business and external groups such as the media, suppliers, customers and the government.
Without good, clear communication, it is not possible to build relationships with these different stakeholders.
 Communication ensures coordination of activities within the business by letting workers know exactly what is
expected from them.
 On the other hand, clear communication channels enable workers (or external stakeholders) to inform
management about problems and ideas.
 Proper communication may help to improve the overall performance of the business, because the relevant
people are informed about certain facts if and when (or before) they need the information.
“South Africans make plans and our government loves indabas and breakaways to think up new plans and appoint
commissions to oversee their development. But there is no decisive leadership execution – mostly due to
incapability’s and incapacities.”
5.
Discuss/define motivation as a function of management/leadership.
[4]
There is no question that it is important to have a motivated work force. Numerous books have been written about
the advantages of motivated employees, the problems associated with low motivational levels and how to motivate
employees.
Unfortunately there is no magical formula or solution when it comes to the complex principle of employee
motivation. What may motivate one employee may not be important to another. To assess employee motivation,
two broad categories of motivational factors, namely monetary and non-monetary factors will need to be
considered.
6.
Discuss/define decision-making as a function of management/leadership.
[4]
 In order to make a responsible decision, all relevant facts must be considered.
 A choice is made between regarding what will be the best in a particular situation.
 Business decisions should be objective, with no personal prejudice influencing the decisions.
 It is important to assess the decision by considering its feasibility and viability.
7.
Looking at the case study above, Piet Naudé is saying our country is crying out for a certain type of leader.
7.1 NAME one leadership style that would be the best way to turn the current situation around. (Excluding
situational approach)
[2]
(Pupil may suggest any style if it can be substantiated)
Autocratic - In certain circumstances this may be the best approach; if, for example, there is a crisis and quick
decision making is required to solve a problem or to implement a strategy that may not be popular with all staff
members.
7.2 Discuss one leadership style that is most appropriate for our politicians to be equipped with to run/lead
our country towards its goals. Substantiate your choice by relating it to the case study. (Excluding
situational approach)
[8]
“I refer randomly to the shock of the auditor-general’s report on financial mayhem in local government; the collapsed feeding schemes in rural
schools; the non-delivery of text books to our vulnerable learners; hooligans in Kuruman who keep a generation of kids out of school; the
Marikana massacre by our democratic state’s own police; and the lack of will from businesspeople to play a more pronounced role in the
socio-political development of our nation.”
The transformational leader is charismatic by nature. He/she will motivate employees by helping them to
understand the meaning of their work. This type of leader places the emphasis on teamwork; he/she will make time
to explain to the group “why they matter”. This builds confidence and trust between employees and management,
consequently the individual and group performance improves in terms of creativity, problem solving and
productivity. People are often inspired and motivated to such a degree that they surpass their own expectations.
This happens more often if the manager not only leads his team, but also empowers team members to achieve their
full potential.
8.
“The result is that we actually stand still and in some cases go backward. Planning is not the problem. Money is not the
problem. The people who should do the job are the problem. They draw payment each month. They are quick to demand
more. But they fail in action.”
8.1 Looking at the above quote from the case study, name the type of leadership style that currently seems
to be failing? (Excluding situational approach)
[4]
The transactional leadership style can be described as an approach of “give and take”, with the manager motivating
employees to perform their tasks in return for possible (salary/bonus/other benefits). The problem with this style is
that as soon as employees regard the reward is insufficient, they become demotivated which often results in labour
unrest. The previous factors, when combined with the following: a workforce of many low-skilled workers, the
feasibility of always considering their input, the use of autocratic leadership; may help to explain why South Africa
has acquired the undesirable reputation of a “nation that loves to strike”.
9.







“If a business or a country does not have a clear vision of what is to be achieved, the danger exists that it becomes stuck
in the operational problems of "today".” This quote would imply that a country needs to be run like a business,
which would further mean that a politician would need to have certain entrepreneurial qualities in order to
run it like a business. Name and briefly explain any five suitable entrepreneurial qualities.
[15]
One of the most important characteristics of an entrepreneur is the ability to identify an opportunity with
potential and to then pursue the opportunity, even if it may be risky. An entrepreneur needs to take risks to reap
rewards.
In order to identify an opportunity in a particular market, the entrepreneur has to understand the target market
and he/she continuously needs to scan the internal and external environment to be proactive in identifying
opportunities and/or threats.
The entrepreneur has to know who the customers (LSM) are, their needs, and then be willing to develop or
change the business plan to satisfy the customers’ needs.
An entrepreneur is an opportunist. The market / business environment may not always be favourable or fit in
with his/her initial plan. The entrepreneur, therefore, must be able to anticipate market trends, identify the
positives and use these to the advantage of the business.
Starting a new business is hard work and takes commitment and perseverance.
Creativity and innovation are often requirements to get a new business off the ground. Being different to that of
a competitor (differentiation strategy) may lead to a successful business.
The ability to prepare and to implement a plan to achieve goals is very important. But the entrepreneur must be
realistic and proactive by developing a contingency plan to manage potential risks.
 In order to execute the plan, the entrepreneur must have the ability to obtain and coordinate the required
resources in the optimal manner.
 Without leadership qualities the entrepreneur is not likely to achieve success. He/she must have the ability to
convince and motivate others to buy into the plan and follow him/her to achieve the desired goals.
 The ability to evaluate achievements and progress is crucial in order to initiate corrective measures if needed.
 The entrepreneur should be able to make quick decisions about opportunities as they arise.
 The ability to communicate clearly and accurately is critical in order to implement strategies to overcome
challenges and thus capitalise on opportunities.
 An entrepreneur is personally motivated and often prefers to work on his/her own or at the very least be in
charge of what is going on. It is very important that an entrepreneur is insightful enough to know what his/her
shortcomings are and wisely to surround him/her with a supportive team.
10.
Discuss “The situational approach” to leadership.
[5]
It is a combination of all of the above leadership / managerial styles. The manager will adapt the management style
to whatever is required in the specific situation. If the situation requires disciplinary action to be taken, he/she will
adopt an autocratic style. If the group of employees are artistic and do not respond well to too much structure, the
manager may opt for a laissez-faire approach by simply advising what needs to be achieved. He thus avoids being
too prescriptive about the method of achieving the goal. A democratic, transactional or transformational style will be
implemented where it will yield the best results.
11.
Discuss “Laissez faire” as a type of leadership style.
[3]
A manager that follows a laissez-faire management style believes that he/she should not interfere in the process of
carrying out a task. This manager will tell employees, what he/she is expects from them, but will allow them to do
the task without interference. This management style may yield excellent results, if there is a highly-skilled
workforce, motivated to perform optimally.