Class notes Business Studies

MANAGEMENT & LEADERSHIP
Different Leadership Styles:

Democratic leadership style
Leader involves employees in decision making.

Autocratic leadership style
Leader does not involve employees in decision making.

Laissez-faire / Free Reign
Leader delegates tasks to skilled employees.

Charismatic leadership style
Leader inspires employees through their charm.

Transactional leadership style
Leader uses a system of rewards and punishments.


Difference between management and leadership:
Leadership
-People orientated.
-Influences actions of employees.
-Provides guidance and direction to employees.

Management
-Task orientated.
-Instructional approach to employees.
-Controls actions of employees.


Difference between democratic and autocratic:
Democratic
-Leader involves employees in decision making.
-People orientated, considers employees' feelings and opinions.

Autocratic
-All decisions are made by the leader alone.
-Task orientated, does not consider employees' opinions.