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Summary GR12 BUSINESS STUDIES UNIT8

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UNIT 8: MANAGEMENT AND experiences. The leadership style adopted by
certain leaders is influenced by the situations in
LEADERSHIP which the leader finds himself.



Differences between management and
leadership
Democratic leadership style
Management refers to the act of bringing
people together to achieve desired goals and A democratic leader involves employees in the
objectives by using available resources decision-making process. The leader realizes
efficiently and effectively. Leadership refers to that there is power within the collective input of
the process by which a leader guides, inspires, individuals. This inclusive approach by the
and influences the behavior and work of leader ensures the support of employees in
employees, in pursuit of the organization's decisions made by the leader. This leadership
goals. style is also called the participative leadership
style.
Both managers and leaders perform important
functions within an organization and are
therefore critical in achieving an organization's
goals. Clear differences exist between what it Autocratic leadership style
means to be a leader and what it means to be a
manager. An autocratic leader does not involve
employees in the decision-making process.
• Leaders have a broad view of an organization. Employees are told what to do and must carry
They focus on the vision and mission of the out the decisions of the leader without
business. They view employees as people first, questioning decisions.
before relating to them as employees.

• However, managers have a narrower view of
the organization. They focus on the Laissez-faire/Free-rein Leadership
organization's immediate goals. Style
LEADERSHIP MANAGEMENT A laissez-faire/free-rein leader delegates
• Inspire and • Manage processes decision-making to trusted employees. The
motivate employees using their authority. leader is not involved in the decision-making
through their
process and allows employees to make
leadership.
• Provide guidance • Follow an decisions in the best interest of the
and direction to instructional organization.
employees. approach when
dealing with
employees.
• Promote creativity • Follow the plans to
Charismatic leadership style
to improve achieve targets.
A charismatic leader uses his/her personality
productivity levels.
and charm to influence the behavior and actions
• Focus on the vision • Focus on
and mission of the organizational targets of employees. Employees are inspired by the
organization. energy and acumen of the charismatic leader.
• Focus on the • Focus on the
potential of processes involved in
employees. the production
process. Transactional leadership style
A transactional leader uses rewards and
punishments to drive employees towards
Different leadership styles
business goals and targets. Transactional
Leaders use different leadership styles to inspire leaders focus on the results/performance of
and motivate employees. A leader's preferred employees to measure their effectiveness
leadership style is largely determined by towards the goals of the organization.
personal beliefs, attitudes, and past

, • Teamwork is promoted and the input of
employees is valued.



Autocratic leadership style
• When a crisis arises within an organization
Differences between the and requires immediate action from the leader.
democratic leadership style and • In the event of an emergency that requires
autocratic leadership style the leader to act immediately to prevent loss of
life/serious injury to workers. For example, to
Democratic Autocratic evacuate the building in the event of a fire in an
leadership style leadership style office.
• Invite employees to • All decisions are
be part of the made by the leader • The leader has all the information at his
decision-making alone - without disposal and does not require further input from
process. employee employees.
involvement.
• Open • Employees are told • The leader must exercise authority over
communication what to do and how it employees who regularly disregard the
between the leader should be done. organization's policies/procedures.
and employees.
• People-oriented, • Task-oriented,
taking into account focusing on the
the opinions of outcome and not the Laissez-faire/Free-rein leadership style
employees. employees.
• Empower workers • Positive effect on • The leader is busy with more important
by involving them in novice/new workers aspects of the business and delegating duties
the decision-making who appreciate the
can improve the efficiency of the organization.
process. micromanagement
style. • Employees who are experienced in their
• Experienced • The most chosen fields are often trusted by the leader to
employees provide appropriate
make responsible decisions.
the leader with leadership style in
valuable advice and the event of a • Leadership potential exists among employees
support. crisis/emergency.
and that they need opportunities to learn
additional skills.
Applications and impact of the five • Employees have acquired a greater level of
leadership styles in the workplace knowledge/skills on a particular topic than the
leader has.
Leadership styles adopted by leaders largely
determine the relationship between the leader
and employees. As events unfold within an
organization, situations may arise in which Charismatic leadership style
different leadership styles can be applied.
• The organization wants to implement changes
and uses the leader to gain the support of
employees.
Democratic leadership style
• The leader wants to boost the morale of
• The leader knows his own limitations and is employees, who may be demotivated.
open to new ideas/innovative thinking.
• The leader wants employees to continue on
• The leader requires a different perspective on the path of high productivity/efficiency levels.
a matter and experienced employees can
provide valuable information. • Levels of employee confidence are low, and
employees need to be inspired.
• Employees are experienced and experts in
their chosen professional fields.

Transactional leadership style
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