PRINTED BY: Tawanda George <>. Printing is for personal, private use only. No part of this book may be reproduced or transmitted
without publisher's prior permission. Violators will be prosecuted.
INTRODUCTION TO BUSINESS MANAGEMENT
CHAPTER 9: LEADING
The nature of leadership
Leadership is one of the most researched and most controversial topics in management.
In the leading function, managers take the lead to bridge the gap between formulating plans and reaching
goals. They transform plans into reality by influencing individuals, groups and teams in the organisation by
communicating with them and by creating an environment conducive to motivating employees.
Leadership and management
Leadership is not the same as management.
Influencing is the process leaders follow when communicating ideas, gaining acceptance of them, and
inspiring followers to support and implement the ideas through change. Influencing is also about the
relationship between leaders and followers. Managers may coerce employees in order to influence their
behaviour, but leaders do not.
The components of the leading function
The components of leadership entail the following:
• Authority denotes the right of a manager to give commands to, and demand actions from,
employees.
• Power is a manager’s ability to influence his or her employees’ behaviour.
• Responsibility is the obligation to achieve organisational goals by performing required activities.
Managers are responsible for the results of their organisations, departments or sections.
• Delegation is the process of assigning responsibility and authority for achieving organisational goals.
Managers delegate responsibility and authority down the chain of command. Delegation refers to
giving employees new tasks. Such a task may become part of a redesigned job or may simply be a
once-off task.
• Accountability is the evaluation of how well individuals meet their responsibilities. Managers are
accountable for all that happens in their sections, departments or organisations. Managers can
delegate authority and responsibility, but they can never delegate their accountability. The Bidvest
Group case study at the beginning of this chapter describes how Brian Joffe delegates authority and
responsibility to autonomous entrepreneurs, each responsible for growing their own operations.
However, Joffe and the Bidvest management team remain accountable to the shareholders and
other stakeholders in Bidvest for the success of all operations.
Authority and power are probably the most important components of leading and, therefore, deserve a few
further remarks.
Authority
Managers are responsible for ensuring that employees work together to achieve the organisation’s goals.
Without authority, managers are unable to manage, initiate or sustain the management process.
http://e.pub/ncd9cghvy1nprw73go8j.vbk/OEBPS/Text/chapter09-print-1517238383.x... 2018/01/29
, Power
• Leading and power go hand in hand.
• Top management delegates position power down the chain of command. Managers have personal
power when their followers bestow it on them.
• There is a power continuum from position power to personal power, on which the following types of
power can be placed:
o Coercive power is the power to enforce compliance through fear, whether psychological,
emotional or physical. Criminals often make use of such power through physical force or
violence. Modern organisations do not use physical force, but employees’ psychological or
emotional fear that the organisation will retrench them or exclude them from a group gives
managers a form of power that could be used to put pressure on employees.
o Reward power is based on the manager’s ability to influence employees with something of
value to them. It concerns the power to give or withhold rewards. Such rewards include, for
example, salary raises, bonuses, praise, recognition and the allocation of interesting
assignments. The more rewards a manager controls and the more important these rewards
are to employees, the greater the reward power a manager possesses.
o Legitimate power is the power an organisation grants to a particular position. Accordingly, a
manager has the right to insist that employees do their work and the right to discipline or
dismiss them if they fail to comply.
o Referent power refers to a manager’s personal power or charisma. Employees obey
managers with referent power simply because they like them, respect them and identify with
them. In other words, the leader’s personal characteristics make him or her attractive to
others.
o Expert power is the power that a manager’s expertise, knowledge and professional ability
give him or her, particularly over those who need the knowledge or information. The more
important the information and the fewer the people who possess it, the greater is the power
of the person who commands it.
A manager who commands all five types of power is a strong leader.
without publisher's prior permission. Violators will be prosecuted.
INTRODUCTION TO BUSINESS MANAGEMENT
CHAPTER 9: LEADING
The nature of leadership
Leadership is one of the most researched and most controversial topics in management.
In the leading function, managers take the lead to bridge the gap between formulating plans and reaching
goals. They transform plans into reality by influencing individuals, groups and teams in the organisation by
communicating with them and by creating an environment conducive to motivating employees.
Leadership and management
Leadership is not the same as management.
Influencing is the process leaders follow when communicating ideas, gaining acceptance of them, and
inspiring followers to support and implement the ideas through change. Influencing is also about the
relationship between leaders and followers. Managers may coerce employees in order to influence their
behaviour, but leaders do not.
The components of the leading function
The components of leadership entail the following:
• Authority denotes the right of a manager to give commands to, and demand actions from,
employees.
• Power is a manager’s ability to influence his or her employees’ behaviour.
• Responsibility is the obligation to achieve organisational goals by performing required activities.
Managers are responsible for the results of their organisations, departments or sections.
• Delegation is the process of assigning responsibility and authority for achieving organisational goals.
Managers delegate responsibility and authority down the chain of command. Delegation refers to
giving employees new tasks. Such a task may become part of a redesigned job or may simply be a
once-off task.
• Accountability is the evaluation of how well individuals meet their responsibilities. Managers are
accountable for all that happens in their sections, departments or organisations. Managers can
delegate authority and responsibility, but they can never delegate their accountability. The Bidvest
Group case study at the beginning of this chapter describes how Brian Joffe delegates authority and
responsibility to autonomous entrepreneurs, each responsible for growing their own operations.
However, Joffe and the Bidvest management team remain accountable to the shareholders and
other stakeholders in Bidvest for the success of all operations.
Authority and power are probably the most important components of leading and, therefore, deserve a few
further remarks.
Authority
Managers are responsible for ensuring that employees work together to achieve the organisation’s goals.
Without authority, managers are unable to manage, initiate or sustain the management process.
http://e.pub/ncd9cghvy1nprw73go8j.vbk/OEBPS/Text/chapter09-print-1517238383.x... 2018/01/29
, Power
• Leading and power go hand in hand.
• Top management delegates position power down the chain of command. Managers have personal
power when their followers bestow it on them.
• There is a power continuum from position power to personal power, on which the following types of
power can be placed:
o Coercive power is the power to enforce compliance through fear, whether psychological,
emotional or physical. Criminals often make use of such power through physical force or
violence. Modern organisations do not use physical force, but employees’ psychological or
emotional fear that the organisation will retrench them or exclude them from a group gives
managers a form of power that could be used to put pressure on employees.
o Reward power is based on the manager’s ability to influence employees with something of
value to them. It concerns the power to give or withhold rewards. Such rewards include, for
example, salary raises, bonuses, praise, recognition and the allocation of interesting
assignments. The more rewards a manager controls and the more important these rewards
are to employees, the greater the reward power a manager possesses.
o Legitimate power is the power an organisation grants to a particular position. Accordingly, a
manager has the right to insist that employees do their work and the right to discipline or
dismiss them if they fail to comply.
o Referent power refers to a manager’s personal power or charisma. Employees obey
managers with referent power simply because they like them, respect them and identify with
them. In other words, the leader’s personal characteristics make him or her attractive to
others.
o Expert power is the power that a manager’s expertise, knowledge and professional ability
give him or her, particularly over those who need the knowledge or information. The more
important the information and the fewer the people who possess it, the greater is the power
of the person who commands it.
A manager who commands all five types of power is a strong leader.
