Summary Business Management – Decision Making & Problem Solving Study Guide

Business Management – Leadership &
Organizational Behaviour Notes (BUS101)
1. Introduction to Leadership
- Leadership is the ability to influence, motivate, and enable others to achieve organizational goals.
- Difference between Leadership vs Management:
• Management = Planning, organizing, controlling.
• Leadership = Inspiring, guiding, motivating.

2. Leadership Theories
- Trait Theory – Leaders are born, not made. Focuses on personality traits like confidence,
intelligence, charisma.
- Behavioral Theory – Leadership can be learned; focuses on leader’s actions (autocratic,
democratic, laissez-faire styles).
- Contingency Theory – Effective leadership depends on the situation (Fiedler’s model).
- Transformational Leadership – Inspires followers by vision and enthusiasm.
- Transactional Leadership – Focuses on rewards and punishments.

3. Motivation in Organizations
- Maslow’s Hierarchy of Needs
1. Physiological (food, shelter)
2. Safety (job security)
3. Social (belonging, relationships)
4. Esteem (recognition, respect)
5. Self-actualization (growth, fulfillment)
- Herzberg’s Two-Factor Theory
• Hygiene factors: salary, work conditions (prevent dissatisfaction).
• Motivators: recognition, achievement (increase satisfaction).
- McGregor’s Theory X and Theory Y
• X = Workers are lazy, need strict supervision.
• Y = Workers are self-motivated, enjoy responsibility.

4. Organizational Behaviour Basics
- Study of how people behave in organizations.
- Focus on individuals, groups, and structures.
- Key areas:
• Personality & Perception
• Attitudes & Job Satisfaction
• Group Dynamics & Teamwork
• Communication in organizations