2.3.

Leadership and Management

• Key function of management

• Managers have 3 major tasks/roles:
• Interpersonal role/routine tasks
• Dealing with employee-related issues
• Communicating with external stakeholders
• Other set/recurring tasks – meetings, staff appraisal, etc.
• Informational role/communication tasks
• Decision-making role/planning tasks
• Fayol’s Theory
• Management plans, organizes, commands, coordinates, and controls business
activities
• Need for division of labor, specialization, military-like structure, authoritarian
management, unity in command, equity, and morale
• Charles Handy’s Theory
• Managers are intelligent, have initiative and are self-assured
• Theory of Management
• Managers as general practitioners (deal with health of business)
• Managers as confronters of dilemmas
• Managers as balancers of cultural mixes
• Helicopter factor – need to rise and see the bigger picture
• Drucker’s Theory
• Encouragement of decentralization
• Managers have to:
• Set organizational objectives
• Organizing tasks and people
• Communicating and motivating
• Measuring performance
• Developing people

• Leadership vs. management

• Leadership
• Process of influencing and inspiring others to achieve goals (usually with broad
goals and no time frame)
• Management
• Process of problem solving and decision making as well as planning, organizing,
budgeting, and controlling (usually with specific goals and definite timeframe)
• Time and devotion – leadership is a 24 hour job
• Roles and responsibilities – leaders innovate, managers administer
• Influence on others – leaders uses emotion, managers rationalize
• Vision – leaders have them
• Leadership styles
• Autocratic (authoritarian)
• Makes all decisions, doesn’t delegate tasks or responsibility
• Appropriate when workers are unskilled, unmotivated
 • No feedback from subordinates as their opinions/suggestions are ignored
(alienates workforce)
• Democratic
• Involves subordinates in decision-making process
• Better morale and motivation among employees, better decisions
• Appropriate when manager can’t always be around, employees are competent
• Not suitable for very large workforce
• Decision-making may take a long time
• Laissez-faire
• Decision-making and authority is delegated
• Causes high morale/motivation among subordinates
• Appropriate for situations where creative ideas are important, subordinates are
competent, skilled, and motivated
• Decision making and time taken to accomplish tasks may take long due to lack of
supervision
• Situational leadership (contingency management)
• Not based on single approach
• Using right person and the right style for the right situation
• CLOTS – factors that affect situational leadership
• Culture – culture/group norms in organization
• Leader – how experienced/trusted are leaders
• Organization – tall or flat hierarchical structure
• Task – to what extent is task difficult/urgent/important?
• Subordinates – what is level of skill/motivation/unity of members? how
many employees are there?

Ethical Considerations:
• Leaders ‘do the right thing’
• Managers ‘do the right thing for the organization1’

Cultural Differences:
• Different views of autocratic leadership