HEAD FOR
SUCCESS
BUSINESS STUDIES – GRADE 12
TERM 2
TOPIC 5: MANAGEMENT AND LEADERSHIP
MANAGEMENT AND LEADERSHIP
INLEIDING:
•
Dynamic leadership increases a business’
chances of success.
•
Dynamic leadership is part of management.
•
Managers can display management
characteristics, but lack leadership qualities.
•
It is possible for managers to learn how to be
dynamic leaders.
•
Although there is a distinction between a
manager and a leader, managers are often
leaders.
MANAGEMENT AND LEADERSHIP
THE DIFFERENCE BETWEEN
LEADERSHIP AND MANAGEMENT:
MANAGEMENT AND LEADERSHIP
THE DIFFERENCE AND SIMILARITIES BETWEEN LEADERSHIP
AND MANAGEMENT:
•
Leadership and management are closely related.
•
The biggest similarity between management and
leadership is that both concepts involve having a
person in an authoritarian position.
•
Other similarities between good managers and
leaders include:
•
•
•
•
•
•
Good managers and
Good managers and
Good managers and
Good managers and
Good managers and
Good managers and
communicators.
good
good
good
good
good
good
leaders
leaders
leaders
leaders
leaders
leaders
are innovative.
know how to delegate.
are knowledgeable.
are organised.
are open to change.
are clear
MANAGEMENT AND LEADERSHIP
THE DIFFERENCE AND SIMILARITIES BETWEEN
LEADERSHIP AND MANAGEMENT:
•
The similarities between leaders and managers are probably more than
the differences, and even though management and leadership are very
similar concepts, they are not exactly the same thing.
•
The differences between management and leadership include:
Definition
Management
Leadership
• Management plans, controls, leads
and organises the resources in a
business.
• Leadership is about inspiring, motivating
and encouraging a team to achieve its
goals.
• Based on a position on a hierarchy.
• Based on a person’s nature and
personality.
• Rely on their position to obtain
cooperation of employees.
• Leaders do not need a managerial
position to exercise leadership qualities.
• Focused on tasks.
• Focused on people.
• Responsible for ensuring that
performance targets are met.
• Often take the initiative to set new targets.
• Managers help employees to get a
• Leaders help people to reach their
MANAGEMENT AND LEADERSHIP
THE DIFFERENCE AND SIMILARITIES BETWEEN
LEADERSHIP AND MANAGEMENT:
•
The differences between management and leadership include:
Appointed
/ elected
Management
Leadership
• Managers are appointed.
• Leaders are elected.
• Good managers are skilled,
experienced and knowledgeable.
• Good leaders are inspirational.
MANAGEMENT AND LEADERSHIP
OTHER DIFFERENCES LEADERSHIP AND MANAGEMENT:
Management
Leadership
• A manager has authority because of
the office he/she holds and uses the
power to expect form people to carry
out tasks and activities.
• Has the vision to make the business
more successful by creating a vision of
change, to determine direction for the
business and inspire others to follow.
• Control people through the setting of
rules and procedures and to enforce it
to reach the company’s goals.
• Communicate goals and use personal
characteristics (focus on interpersonal
aspects) to support people, to empower
and motivate them to perform well to
get good results.
• Management is administrative in
• A leader’s task and person oriented.
nature and the manager is task
Empower people by providing
oriented by creating structures,
opportunities for them and inspire
allocate and organise resources to
people to be achievers.
carry out the functions of the business.
MANAGEMENT AND LEADERSHIP
OTHER DIFFERENCES LEADERSHIP AND MANAGEMENT:
Management
Leadership
• A good manager must possess certain
• Some characteristics of a good leader:
qualities and/or skills, for example:
adaptable, perseverance, creativity,
good human relations, knowledge of the
can convince people, good human
workings of the various departments of
relation skills, take a stand,
the business, good management style.
confidence, self-discipline, etc.
etc.
• A manager has power by virtue of
• A leader has power by virtue of his/her
his/her position of authority that he/she
knowledge, skills and expertise.
are assigned to. People follow the
People follow a leader out of own
manager because of the position he/she
choice.
occupies in the business.
Functions of management:
Functions of leadership:
• Use by different managers at different
management levels.
• Businesses need two types of leaders,
namely:
 Top level: Make strategic decisions
 Strategic leaders: determined the
 Middle level: Make tactical decisions
future of the business.
 Lower level: Take operational decisions  Operational leaders: implement the
vision (let the dream come true)
MANAGEMENT AND LEADERSHIP
THE DIFFERENCE BETWEEN LEADERSHIP AND MANAGEMENT:
•
Management is responsible for performing the following management tasks:
Planning
• The process of setting goals and making plans to achieve
those goals.
• Planning is done by managers on all three levels of
management.
Organising
• Refers to the way in which employees in an enterprise are
arranged in order to carry out plans, responsibilities and
duties.
• Describes what tasks employees are responsible for, who
employees must report to and from whom orders must be
taken.
Activating
• Means to start doing the work that will enable an enterprise to
achieve its goals.
Leading
• Means to guide employees through their duties and
responsibilities.
• Involves inspiring employees to achieve the business’ goals.
MANAGEMENT AND LEADERSHIP
THE DIFFERENCE BETWEEN LEADERSHIP AND MANAGEMENT:
• Involves establishing a productive working climate, supervising and
ensuring that effective communication channels are in place.
Controlling
Directing
Management
responsible
performing
• Ensuringisthat
a businessfor
runs
smoothly. the following management tasks:
• Ensuring that tasks are carried out as planned.
• Involves comparing actual results with the goals set by management/
• Corrective measures are taken if there is a difference between actual
results and the goals that the business set out to achieve.
Risk management
•
• Even though risk management is not classified as a traditional management
task, it remains an important management responsibility.
• Involves identifying risks and finding strategies to deal with risks.
• The following steps are involved:
 Identify threats/risks from all the business environments.
 Determine the extent to which the business is exposed to these threats.
 Evaluate the risk.
 Control the risk by minimising losses.
 Finance the risk by working possible losses into the budget.
MANAGEMENT AND LEADERSHIP
LEADERSHIP STYLES:
• People have different types of personalities and
leaders have different leadership styles.
• Good leaders are capable of adapting their
leadership style to suit their followers and the
situation, because:
•
•
•
•
Each situation is different
Each group of followers is different
People have different personalities
Good leadership is about guiding people through
change – leaders must also be adaptable.
MANAGEMENT AND LEADERSHIP
EXAMPLES OF DIFFERENT LEADERSHIP STYLES INCLUDE:
Definition
Democratic leadership
style
Autocratic
leadership style
• A leadership style which • A leadership style in
involves all employees in
which the leader
the decision making
makes all the
process.
decisions.
• Also known as the
• The leader remains in
participative leadership
control and rarely
style.
accepts advice from
followers.
• Also known as bosscentered leadership
Laizzes-faire /free
leadership style
• A leadership style in
which the leader
allows followers to
make decisions.
• This nonauthoritarian
approach is also
known as free reign
leadership.
Characteristics
Democratic leadership style
Autocratic leadership
style
Laizzes-faire / free
leadership style
•
The leader involves employees in
the decision making process.
•
The leader does not
allow for any
negotiations.
•
The leader allows
employees to make
decisions.
•
The leader remains responsible
for making decisions.
•
The leader makes the
decisions by telling
employees what he/she
wants done and how
he/she wants it done.
•
The leader remains
responsible for the
decisions that are
made.
•
Task oriented, but gives
consideration to employee’s
feelings and opinions.
•
Strictly task orientated.
•
Employee orientated.
•
Values the opinion of the
employees, but remains
committed to the task.
•
Not concerned about
the opinions of
employees.
•
Places a high value on
the opinions of
employees.
•
Handles conflict situations by
involving subordinates in finding
the best solution.
•
Handles conflict
situations by telling
subordinates what they
should do.
•
Handles conflict by
allowing subordinates to
find their own solutions
to problems.
•
Assumes that people are more
committed to tasks when they
have been involved in the
decision making process and
when they are working towards
common goals.
•
Gives instructions to
employees without
involving them in the
decision making
process
•
Provides employees
with very little direction
and allows teams to
complete tasks on their
own.
MANAGEMENT AND LEADERSHIP
Application
EXAMPLES OF DIFFERENT LEADERSHIP STYLES INCLUDE:
Democratic leadership
style
Autocratic
leadership style
Laizzes-faire / free
leadership style
• Suitable when
cooperation is required
between a leader and a
team.
• Suitable when decisions
need to be looked at
from several
perspectives.
• Suitable when
employees are unsure
about a task and need
instruction.
• Suitable when new
policies are
implemented.
• Suitable in crisis
situations.
• Suitable when urgent
decisions must be
made.
• Suitable when
employees are
highly experienced
and know more
about a task than
the leader.
• Suitable when a
leader wants to
empower followers.
MANAGEMENT AND LEADERSHIP
EXAMPLES OF DIFFERENT LEADERSHIP STYLES INCLUDE
:
Bureaucratic leadership style:
• Bureaucracy involves administration through enforcing excessive
and often unnecessary rules.
• Bureaucratic leaders are rigid rule followers.
• Bureaucratic leaders expect followers to follow and respect rules.
• This leadership style is more effective when followers are on the
lower levels of a business.
• It cannot work where leaders have to be creative.
• The bureaucratic leadership style is best applied where rules need
to be followed rigorously, for example, when employees need to
carry out safety procedures.
• Suitable for routine work or in work situations where health and
safety is a priority, e.g. in factories where workers work with
dangerous machinery or toxic materials.
MANAGEMENT AND LEADERSHIP
EXAMPLES OF DIFFERENT LEADERSHIP STYLES INCLUDE:
Charismatic leadership:
• Charismatic leaders draw followers with charm and
personality.
• Charismatic leaders instil confidence and trust in followers.
• Charismatic leaders convince other people to believe in
their visions.
• Charismatic leaders are not discouraged by difficult
challenges.
• Most suitable for situations where employee morale needs a
boost.
• Very useful to implement change because of their ability to
motivate and inspire followers.
MANAGEMENT AND LEADERSHIP
EXAMPLES OF DIFFERENT LEADERSHIP STYLES INCLUDE:
Transactional leadership theory:
• Assumes that followers are driven by punishment and
reward.
• Punishment and reward is always linked to the task at
hand.
• Group members who fail to make a meaningful contribution
are punished, while group members who made meaningful
contributions are rewarded.
• This leadership style may lead to followers being scared to
try new things, because they are scared of failing.
• This leadership style may also lead to low morale among
group members.
MANAGEMENT AND LEADERSHIP
ADVANTAGES AND DISADVANTAGES OF LEADERSHIP STYLES:
DEMOCRATIC LEADERSHIP STYLE:
ADVANTAGES
DISADVANTAGES
Employees are involved in the
decision making process and be
empowered
Wrong decisions can be taken if
the employees are inexperienced.
Employees bring a variety of
inputs and skills into the process.
The discussion of issues is time
consuming.
A greater variety of ideas
encourage innovation.
Not suitable for crisis situations.
MANAGEMENT AND LEADERSHIP
ADVANTAGES AND DISADVANTAGES OF LEADERSHIP STYLES:
AUTOCRATIC LEADERSHIP STYLE:
ADVANTAGES
DISADVANTAGES
Especially suitable when quick
decisions are needed.
Causes a gap between the leader
and the employees.
Work in large businesses where it
is not possible to consult with
everyone.
Lack of motivation and productivity
of employees because two-way
communication is not applied.
Good styles for leaders with
employees who have few skills.
Top-down approach that can be
experienced as negative and
creates disrespect.
Good for crisis situations.
Very little input form other
stakeholders.
MANAGEMENT AND LEADERSHIP
ADVANTAGES AND DISADVANTAGES OF LEADERSHIP STYLES:
LAISSEZ-FAIRE LEADERSHIP STYLE:
ADVANTAGES
DISADVANTAGES
Because employees make
decisions they feel empowered
and motivated.
Wrong decision especially when
staff is inexperienced.
Employees bring a variety of
inputs and skills into the process.
When the staff lost their focus and
direction it can hamper the
achievement of goals.
Time consuming.
MANAGEMENT AND LEADERSHIP
ADVANTAGES AND DISADVANTAGES OF LEADERSHIP STYLES:
BUROCRATIC LEADERSHIP STYLE:
ADVANTAGES
Employees know exactly what is
expected of them because they
have detailed instructions.
DISADVANTAGES
Do not encourage creativity,
teamwork or renewal at all.
MANAGEMENT AND LEADERSHIP
EXAMPLES OF DIFFERENT LEADERSHIP STYLES INCLUDE:
The following example shows how the different
leadership styles can be applied:
◦ An autocratic approach works well to tell employees
that a strategy is not working and that a new
strategy must be devised.
◦ A democratic approach works well to ask employees
for their ideas to devise a new strategy.
◦ A laizzes-fair approach works well when experts are
allowed to implement a new strategy under the care
of a leader.
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Leaders and followers:
• The relationship between a leader and followers influences
team performance.
• Leaders aim to inspire, motivate and encourage a team of
followers to achieve their goals.
• Leaders cannot inspire, motivate or encourage without
followers.
• Each follower in a group has a different attitude.
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Leaders and followers:
• Let’s take a look at the attitudes of good and bad followers.
Good followers
• Are willing to work as a team.
• Look out for team members.
• Listen to what is expected of
them.
• Accept responsibility when
something doesn’t work out.
Bad followers
• Just trail along – depend on leaders and
other followers to pull them through a task.
• Only concerned about themselves.
• Think that they don’t have to listen to advice
or instructions, because other people are
listening.
• Often blame other people.
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Leaders and followers:
• Teams can achieve great results when there is a sense of
understanding between the leader and the team of followers.
• The table below mentions a few common frustrations experienced by
followers, as well as positive behaviour from leaders that can change
the attitudes of followers.
Followers
Leaders
Followers are unwilling to
work.
•
•
Lead by example.
Reward positive behaviour.
Team members do not get
along.
•
•
Engage in team building activities.
Reward positive group behaviour.
The group has insufficient
resources at their disposal.
•
•
Motivate employees to devise alternative strategies.
Find more efficient ways to use available resources.
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Situational leadership (Hersey and Blanchard):
• According to this theory, there is no single best way to lead.
• Different leadership qualities will be effective in different
situations, but the same leadership quality will not work in
every situation.
• The situational leadership theory is based on two pillars:
• Leadership style
• Maturity level of a team or group
• The maturity level of the team refers to factors like willingness
to take responsibility for a task, willingness to work hard and a
team’s experience
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Situational leadership (Hersey and Blanchard):
• Hersey and Blanchard found that even though successful
leaders are task oriented, they can adapt their leadership
style to the maturity level of a team/group.
• Hersey and Blanchard identified four maturity levels:
• Unable and insecure.
• Unable but willing.
• Capable but insecure.
• Capable and willing.
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Situational leadership (Hersey and Blanchard):
• This theory suggests that a leader adapts his/her approach to
the maturity level of the group.
• A group that is unwilling and unable will need a more
autocratic approach, while a capable and confident group will
probably respond best to a free reign approach.
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Transitional and transformational leadership:
• The word transformation refers to a drastic change, while
transition refers to the process of changing.
• Hence, transformational leaders guide followers through change.
• Transformational leaders often identify a need for change, inspire
a team to commit to the change and then guide the team through
the transition, by inspiring and motivating them.
• Transformational leaders aim to reduce or remove doubt and
resistance.
• This type of leader handles conflict by motivating subordinates to
focus on their goals by looking at the greater scheme of things.
• Former President Nelson Mandela is an example of a
transformational leader – he led South Africa through transition in
the nineties.
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Super leadership theory:
• A leadership approach that develops followers into leaders.
• Super leaders look beyond the task at hand and focus on a
greater issue – turning followers into leaders.
• A business that adopts this approach is unlikely to experience
leadership issues, as leaders are constantly being developed.
• Employees will ultimately be able to manage themselves.
• Self-management refers to the application of strategies and
skills to take responsibility for oneself – hence, each employee
will direct him-/herself towards achieving the business’ goals.
MANAGEMENT AND LEADERSHIP
THEORIES OF MANANAGEMENT AND LEADERSHIP:
Servant leadership theory:
• Servant leaders lead by making sure the needs of followers are
catered for.
• Servant leaders have high regard for the well-being of followers.
• Servant leaders must guard exploitation by overly needy
followers.
• Groups lead by servant leaders often display positive attitudes
and high morale.
• This leadership style is most suitable when the task at hand
require much extra input from the team, for example, when a
team has to work overtime for long periods of time.
• This leadership style is not suitable when decisions need to be
taken quickly.
MANAGEMENT AND LEADERSHIP
THE ROLE OF PERSONAL ATTITUDE IN SUCCESS AND LEADERSHIP:
• Attitude refers to the way a person looks at life.
• Your attitude is a choice which can either limit you, or it can
empower you.
The role of personal attitude in success:
• In order to be successful, one needs to work hard.
• However, hard work may not be enough to guarantee success.
• One also needs to have a positive attitude towards one’s
career.
• One’s attitude is reflected in one’s work, for example laid back
or enthusiastic.
MANAGEMENT AND LEADERSHIP
THE ROLE OF PERSONAL ATTITUDE IN SUCCESS AND LEADERSHIP:
The role of personal attitude in success:
There are different work attitudes, including:
Politeness
•
Displaying good manners at work is an example of a good working
attitude.
Modesty
•
Be respectful towards people in the office, irrespective of their
position.
Punctuality
•
•
Be punctual for all appointments.
This shows that you have respect for other people’s time.
Friendliness
•
•
Be kind to colleagues.
Never be rude to anyone, even if you feel it is deserved.
Hard work
•
•
People who achieve success, work hard.
They are eager to accept a challenge.
Optimism
•
It is frustrating to work with a person who always sees the negative
side of life or work.
Optimistic people help to create a pleasant work atmosphere and are
easier to get along with.
•
MANAGEMENT AND LEADERSHIP
THE ROLE OF PERSONAL ATTITUDE IN SUCCESS AND LEADERSHIP:
The role of personal attitude in success:
•
A positive attitude towards one’s work will result in positive
work behaviour.
•
Examples of positive work behaviour include:
• Sharing ideas that benefit the business.
•
Getting out of your comfort zone by accepting new
challenges.
•
Dressing appropriately.
•
Using appropriate language.
•
Learning to work independently.
•
Showing interest in the enterprise’s initiatives.
•
Showing integrity.
MANAGEMENT AND LEADERSHIP
THE ROLE OF PERSONAL ATTITUDE IN SUCCESS AND LEADERSHIP:
The role of personal attitude in success:
• True professionals control their attitude.
• Employees with bad attitudes tend to exhibit the following
traits:
• They are difficult to work with.
• They tend to have a negative influence on other employees.
• They spend more time on a problem than they do on finding a
solution.
MANAGEMENT AND LEADERSHIP
THE ROLE OF PERSONAL ATTITUDE IN SUCCESS AND LEADERSHIP:
•
•
•
•
•
•
•
•
•
The role of personal attitude in leadership:
A leader’s attitude – good or bad – can influence the success of a
business enterprise.
Attitude refers to the way in which one sees life.
A person’s attitude reflects in your behaviour
Attitude reflects leadership – leaders understand that a positive
attitude will set the right atmosphere which encourages positive
responses from others.
Teams tend to adopt their attitude form their leader.
If team members are acting negatively, or exhibiting low morale, it
may be that the team leader’s attitude is influencing their thoughts
and behaviour.
Leaders should lead by example – this means that leaders should
model the behaviour they want to see in their team members.
Good leaders understand that the attitude of the group determines the
success of the group.
It is very often difficult to change a person’s attitude, because people
with a negative attitude is often negative about a lot of things.
.
MANAGEMENT AND LEADERSHIP
THE ROLE OF PERSONAL ATTITUDE IN SUCCESS AND LEADERSHIP:
The role of personal attitude in leadership:
Leaders can influence followers’ attitudes through the following
behaviour:
◦
◦
◦
Leaders should always be excited about the task at hand.
Leaders should persevere, even if there are challenges.
Leaders should be willing to do the tasks nobody else is keen to
do.
Examples of positive leadership attitudes include:
◦
◦
◦
◦
Leaders with
Leaders with
Leaders with
followers.
Leaders with
positive attitudes inspire followers.
positive attitudes empower followers.
positive attitudes share their knowledge with
positive attitudes trust their followers.