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BUSINESS VENTURES
MANAGEMENT AND LEADERSHIP
1. MANAGEMENT AND LEADERSHIP
1.1 DEFINITION OF MANAGEMENT AND LEADERSHIP
Define/Elaborate on the meaning of management and leadership
MANAGEMENT
• The coordination of Planning, organising, leading and controlling employees to achieve
goals.
• A person becomes a manager because of the position in which he/she is appointed
• Managers have power because of the position of authority into which they are appointed.
LEADERSHIP
• The ability of an individual or a group of individuals to influence and guide followers or other
members of an organization
• Leadership is an of inspiring subordinates to perform in order to achieve goals
• It cannot be taught, although it may be learned as it is an inborn trait
• Involves establishing a clear vision and sharing it with others so that they can willingly follow
• A leaders steps up in times of crisis and is able to think and act creatively in difficult
situations.
1.2 DIFFERENCES BETWEEN MANAGEMENT AND LEADERSHIP
Differentiate/Distinguish between management and leadership.
MANAGEMENT LEADERSHIP
• Guides human behaviour. • Influences human behaviour.
• Task orientated. • People orientated.
• Instructional in their approach. • Motivational / Inspirational in their
approach
• Manage by planning / organising / leading • Lead by example / trust / respect.
/ control.
• Focuses on the bottom line / short / • Focuses on the horizon / long term.
medium / long term.
• Administers plans / programs / tasks to • Innovates / Encourages new ideas to
reach targets. increase productivity.
• Controls systems and procedures to get • Inspires staff to trust and support each
the job done. another.
• A person becomes a manager because of • Leaders are born with natural / instinctive
the position in which he/she is appointed. leadership skills.
• Managers have power because of the • Leaders have power/influence because of
position of authority into which they are his/her knowledge/skills/ intelligence.
appointed.
• Communicates through management • Communicates by means of interaction /
functions, e.g. line function. behaviour / vision / values / charisma.
• Enforce rules on subordinates / Ensure • Always trying to find more efficient ways of
that tasks are completed. completing tasks.
• Focuses on how and when. • Focuses on what and why.
• Manages the process of getting things • Guides/Leads people to become active
done by exercising responsibility. participants.
*(Addendum Nov 2022)
MANAGEMENT AND LEADERSHIP 1
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2. LEADERSHIP STYLES
There are FIVE leadership styles, i.e.
1. Democratic / Participative
2. Autocratic / Boss-centered
3. Laissez-Faire/Free Reign
4. Transactional
5. Charismatic
Suggest/Recommend situations in which each leadership style can be applied in the
workplace.
Outline the differences/Differentiate/Distinguish between the following leadership
styles:
Discuss/Evaluate/Analyse the impact (including positives/advantages and/or negatives/
disadvantages) of each leadership style.
NOTE: The explanation of EACH leadership style is embedded in the advantages of the style.
2.1 DEMOCRATIC / PARTICIPATIVE
a. SITUATION IN WHICH LEADERSHIP STYLE CAN BE USED:
This leadership style can be used when :
• Group members are skilled and eager to share their ideas.
• The leader does not have all the information needed to make a decision and employees
have valuable information to contribute.
• Cooperation is needed between a leader and a team.
• Decisions need to be looked at from several perspectives.
b. POSITIVES / ADVANTAGES:
• The leader allows the employees to participate in the decision-making process, so they feel
empowered / positive.
• Staff gives a variety of ideas / inputs / feedback / viewpoints that can lead to innovation /
improved production methods / increased sales.
• Clear / Two-way communication ensures group commitment to final decision(s).
• Authority is delegated which can motivate / inspire workers to be more productive.
• Complex decisions can be made with inputs from specialists / skilled workers.
c. NEGATIVE / DISADVANTAGES :
• Incorrect decisions may be made if staff is inexperienced / not fully informed.
• Decision making may be time consuming because stakeholders must be consulted.
• Employees may feel discouraged if their opinions / inputs are not considered.
• Leaders can rely too much on the input of the followers and fail to make a final decision.
• Not effective in times of crisis / when quick decisions need to be made.
• Some employees only pretend to participate in decision making and their feedback may not
always be accurate.
2.2 AUTOCRATIC / BOSS-CENTERED
a. SITUATION IN WHICH LEADERSHIP STYLE CAN BE APPLIED:
This leadership style can be applied when:
• During crisis situations, e.g. in the case of unforeseen challenges / accidents.
• All the information is available to solve the problem.
• In emergencies, where there is a shortage of time.
• Employees are motivated and the leader has already earned the trust of the followers.
• Dealing with employees who are not cooperative.
MANAGEMENT AND LEADERSHIP 2
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b. POSITIVES / ADVANTAGES:
• Quick decisions can be taken without considering followers / employees.
• Work gets done in time / on schedule.
• Line of command is clear as it is top-down / followers know what to do.
• Direct supervision and strict control ensure high quality products/service.
• Provides strong leadership which makes new employees feel confident and safe.
• Works well in large companies where consultation with every employee is impractical.
• Clear guidance can be given to low-skilled / inexperienced / new staff.
• Useful in a crisis / urgent situation, e.g. after an accident / meeting tight deadlines.
c. NEGATIVE / DISADVANTAGES :
• Leaders and followers may become divided and may not agree on ways to solve problems.
• Workers can become demotivated if their opinions / ideas are not considered.
• De-motivated workers impact negatively on productivity.
• New / Creative / Cost reducing ideas may not be used / never be considered.
• Followers may feel that they are not valued resulting in high absenteeism / high employee
turnover.
• Experienced / Highly skilled workers will resist an autocratic leadership style because it
results in slow growth / low participation / less creativity.
DIFFERENCES BETWEEN DEMOCRATIC AND AUTOCRATIC LEADERSHIP STYLES
DEMOCRATIC AUTOCRATIC
• The leader involves employees in the • A leader takes all decisions alone without
decision making process. involving employees.
• Clear / Two-way communication ensures • Line of command / communication is clear
group commitment to final decision(s). as it is top-down / followers know exactly
what to do.
• People-oriented, as employee's opinions • Task-orientated as the opinions of
are considered. employees are not considered.
• Workers feel empowered as they are • New employees feel confident / safe as
• involved in the decision-making process. • strong leadership is provided.
• Useful when the leader depends on the • Useful in a crisis / urgent situation, e.g.
• inputs of experienced followers. after an accident.
2.3 LAISSEZ FAIRE / FREE REIGN
a. SITUATION IN WHICH LEADERSHIP STYLE CAN BE APPLIED:
This leadership style can be used when :
• Subordinates are experts and can take responsibility for their actions.
• The leader is very busy and delegation of tasks will increase productivity.
• Team members need to improve/develop leadership skills.
• Suitable when employees are highly experienced and know more about the task than the
leader.
b. POSITIVES / ADVANTAGES:
• Workers / Followers are allowed to make decisions on their own work / methods.
• Subordinates have maximum freedom and can work independently.
• Leader motivates workers by trusting them to do things themselves/on their own.
• Authority is delegated, which can be empowering to competent workers / increase
productivity.
• Subordinates are experts and can take responsibility for their actions.
• Suitable for coaching to motivate employees to achieve more / better things.
• It can be empowering for competent followers as they are trusted to do their job.
• Individual team members may improve/develop leadership skills.
MANAGEMENT AND LEADERSHIP 3
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BUSINESS VENTURES
MANAGEMENT AND LEADERSHIP
1. MANAGEMENT AND LEADERSHIP
1.1 DEFINITION OF MANAGEMENT AND LEADERSHIP
Define/Elaborate on the meaning of management and leadership
MANAGEMENT
• The coordination of Planning, organising, leading and controlling employees to achieve
goals.
• A person becomes a manager because of the position in which he/she is appointed
• Managers have power because of the position of authority into which they are appointed.
LEADERSHIP
• The ability of an individual or a group of individuals to influence and guide followers or other
members of an organization
• Leadership is an of inspiring subordinates to perform in order to achieve goals
• It cannot be taught, although it may be learned as it is an inborn trait
• Involves establishing a clear vision and sharing it with others so that they can willingly follow
• A leaders steps up in times of crisis and is able to think and act creatively in difficult
situations.
1.2 DIFFERENCES BETWEEN MANAGEMENT AND LEADERSHIP
Differentiate/Distinguish between management and leadership.
MANAGEMENT LEADERSHIP
• Guides human behaviour. • Influences human behaviour.
• Task orientated. • People orientated.
• Instructional in their approach. • Motivational / Inspirational in their
approach
• Manage by planning / organising / leading • Lead by example / trust / respect.
/ control.
• Focuses on the bottom line / short / • Focuses on the horizon / long term.
medium / long term.
• Administers plans / programs / tasks to • Innovates / Encourages new ideas to
reach targets. increase productivity.
• Controls systems and procedures to get • Inspires staff to trust and support each
the job done. another.
• A person becomes a manager because of • Leaders are born with natural / instinctive
the position in which he/she is appointed. leadership skills.
• Managers have power because of the • Leaders have power/influence because of
position of authority into which they are his/her knowledge/skills/ intelligence.
appointed.
• Communicates through management • Communicates by means of interaction /
functions, e.g. line function. behaviour / vision / values / charisma.
• Enforce rules on subordinates / Ensure • Always trying to find more efficient ways of
that tasks are completed. completing tasks.
• Focuses on how and when. • Focuses on what and why.
• Manages the process of getting things • Guides/Leads people to become active
done by exercising responsibility. participants.
*(Addendum Nov 2022)
MANAGEMENT AND LEADERSHIP 1
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, lOMoARcPSD|58953644
2. LEADERSHIP STYLES
There are FIVE leadership styles, i.e.
1. Democratic / Participative
2. Autocratic / Boss-centered
3. Laissez-Faire/Free Reign
4. Transactional
5. Charismatic
Suggest/Recommend situations in which each leadership style can be applied in the
workplace.
Outline the differences/Differentiate/Distinguish between the following leadership
styles:
Discuss/Evaluate/Analyse the impact (including positives/advantages and/or negatives/
disadvantages) of each leadership style.
NOTE: The explanation of EACH leadership style is embedded in the advantages of the style.
2.1 DEMOCRATIC / PARTICIPATIVE
a. SITUATION IN WHICH LEADERSHIP STYLE CAN BE USED:
This leadership style can be used when :
• Group members are skilled and eager to share their ideas.
• The leader does not have all the information needed to make a decision and employees
have valuable information to contribute.
• Cooperation is needed between a leader and a team.
• Decisions need to be looked at from several perspectives.
b. POSITIVES / ADVANTAGES:
• The leader allows the employees to participate in the decision-making process, so they feel
empowered / positive.
• Staff gives a variety of ideas / inputs / feedback / viewpoints that can lead to innovation /
improved production methods / increased sales.
• Clear / Two-way communication ensures group commitment to final decision(s).
• Authority is delegated which can motivate / inspire workers to be more productive.
• Complex decisions can be made with inputs from specialists / skilled workers.
c. NEGATIVE / DISADVANTAGES :
• Incorrect decisions may be made if staff is inexperienced / not fully informed.
• Decision making may be time consuming because stakeholders must be consulted.
• Employees may feel discouraged if their opinions / inputs are not considered.
• Leaders can rely too much on the input of the followers and fail to make a final decision.
• Not effective in times of crisis / when quick decisions need to be made.
• Some employees only pretend to participate in decision making and their feedback may not
always be accurate.
2.2 AUTOCRATIC / BOSS-CENTERED
a. SITUATION IN WHICH LEADERSHIP STYLE CAN BE APPLIED:
This leadership style can be applied when:
• During crisis situations, e.g. in the case of unforeseen challenges / accidents.
• All the information is available to solve the problem.
• In emergencies, where there is a shortage of time.
• Employees are motivated and the leader has already earned the trust of the followers.
• Dealing with employees who are not cooperative.
MANAGEMENT AND LEADERSHIP 2
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b. POSITIVES / ADVANTAGES:
• Quick decisions can be taken without considering followers / employees.
• Work gets done in time / on schedule.
• Line of command is clear as it is top-down / followers know what to do.
• Direct supervision and strict control ensure high quality products/service.
• Provides strong leadership which makes new employees feel confident and safe.
• Works well in large companies where consultation with every employee is impractical.
• Clear guidance can be given to low-skilled / inexperienced / new staff.
• Useful in a crisis / urgent situation, e.g. after an accident / meeting tight deadlines.
c. NEGATIVE / DISADVANTAGES :
• Leaders and followers may become divided and may not agree on ways to solve problems.
• Workers can become demotivated if their opinions / ideas are not considered.
• De-motivated workers impact negatively on productivity.
• New / Creative / Cost reducing ideas may not be used / never be considered.
• Followers may feel that they are not valued resulting in high absenteeism / high employee
turnover.
• Experienced / Highly skilled workers will resist an autocratic leadership style because it
results in slow growth / low participation / less creativity.
DIFFERENCES BETWEEN DEMOCRATIC AND AUTOCRATIC LEADERSHIP STYLES
DEMOCRATIC AUTOCRATIC
• The leader involves employees in the • A leader takes all decisions alone without
decision making process. involving employees.
• Clear / Two-way communication ensures • Line of command / communication is clear
group commitment to final decision(s). as it is top-down / followers know exactly
what to do.
• People-oriented, as employee's opinions • Task-orientated as the opinions of
are considered. employees are not considered.
• Workers feel empowered as they are • New employees feel confident / safe as
• involved in the decision-making process. • strong leadership is provided.
• Useful when the leader depends on the • Useful in a crisis / urgent situation, e.g.
• inputs of experienced followers. after an accident.
2.3 LAISSEZ FAIRE / FREE REIGN
a. SITUATION IN WHICH LEADERSHIP STYLE CAN BE APPLIED:
This leadership style can be used when :
• Subordinates are experts and can take responsibility for their actions.
• The leader is very busy and delegation of tasks will increase productivity.
• Team members need to improve/develop leadership skills.
• Suitable when employees are highly experienced and know more about the task than the
leader.
b. POSITIVES / ADVANTAGES:
• Workers / Followers are allowed to make decisions on their own work / methods.
• Subordinates have maximum freedom and can work independently.
• Leader motivates workers by trusting them to do things themselves/on their own.
• Authority is delegated, which can be empowering to competent workers / increase
productivity.
• Subordinates are experts and can take responsibility for their actions.
• Suitable for coaching to motivate employees to achieve more / better things.
• It can be empowering for competent followers as they are trusted to do their job.
• Individual team members may improve/develop leadership skills.
MANAGEMENT AND LEADERSHIP 3
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