Management and

Leadership
Chapter 8
 Table of Contents
 Meaning of Management
 Meaning of Leadership
 Difference between Management and Leadership
 Democratic Leadership style
 Democratic leadership style can be applied when:
 Advantages
 Disadvantages
 Autocratic Leadership Style
 Autocratic leadership style can be applied when:
 Advantages
 Disadvantages
 Table of contents continued
 Differences between the democratic and autocratic leadership styles
 Laissez-faire/ Free reign
 Laissez-faire/ Free reign leadership style can be applied when:
 Advantages
 Disadvantages
 Transactional Leadership style
 Transactional leadership style can be applied when:
 A dvantages
 Disadvantages
 Transformational theory
 Situational leadership theory
 Leaders and followers
 The role of personal attitude in successful leadership
 Meaning of Management
 A person becomes a manager because of the position in which he/she is appointed
 Managers have power because of the position of authority into which they are
appointed.
 Meaning of Leadership
 Leadership is an of inspiring subordinates to perform in order to achieve goals
 It cannot be taught, although it may be learned as it is an inborn trait
 Difference between Management
and Leadership
Management Leadership

Guides human behaviour Influences human behaviour.

Focuses on how and when. Focuses on what and why.

Focuses on the short/ medium term. Focuses on the long term

Task orientated. People orientated.

Democratic Leadership style
 A democratic leader involves employees in the decision-making process.
 The leader realises that there is power within the collective input of the
individuals.
Democratic leadership style can
be applied when:
 Innovative and creative ideas are needed
 The leader knows their limitations and is open to new ideas
 Cooperation is needed between leader and team
 Group member are skilled and eager to share their ideas
 Advantages
 Authority is delegated which can motivate workers to be more productive.
 Complex decisions can be made with inputs from skilled workers.
 Employees feel motivated resulting in increased productivity
 Disadvantages
 The reliability of feedback from employees may not be accurate
 The leader could delay making decision because they’re waiting for inputs from experts
 Could be demoralising to employees if a leader does not consider their inputs before
making a decision
 Autocratic Leadership Style
 An autocratic leader does not involve employees in the decision making process
 Employees are told what to do and must execute the decisions of the leader without
questioning their decision
 Autocratic leadership style can be
applied when:
 In crisis situations
 In emergencies, where there is a shortage of time.
 When all the information is available to solve the problem.
 When dealing with employees who are not cooperative
 Advantages
 Work gets done in time
 Useful in a crisis
 Clear guidance can be given to new staff.
 Disadvantages
 Employees could become frustrated if their inputs are not considered
 The leaders may experience resistance from highly skilled employees
 The business could experience high rates of absenteeism because employees do not
feel valued
 Differences between the democratic
and autocratic leadership styles

Democratic Autocratic

• The leader involves employees in the • A leader takes all decisions alone
decision making process. without involving employees.

• People-oriented, as employee's feelings • Task-orientated as the opinions of

and opinions are considered employees are not considered.
 Laissez-faire/ Free reign
 The Laissez-faire/ Free reign leader delegates decision making to employees that they
trust
 The leader separates themselves from the decision-making process and allows
employees to make decisions in the best interest of the organisation
 Laissez-faire/ Free reign leadership style can
be applied when:
 Leadership potential exists amongst employees and that they need opportunities to
acquire additional skills
 Employees who are experience in their chosen field, are often trusted/relied on by the
leader to make responsible decisions
 Employees have acquired a greater level of knowledge/skills on a particular subject
matter than what the leader has acquired
 Advantages
 Subordinates have maximum freedom and can work independently
 Individual team members may improve/develop leadership skills
 Productivity levels of the organisation could increase significantly because
employees feel valued
 Negatives
 Lack of clear direction/leadership may be demotivating to employees.
 Employees may find it difficult to get fellow team members to meet deadlines
 The leader does not become involved in disagreements amongst employees
 Charismatic Leadership style
 A charismatic leader uses their personality and charm to influence the behaviour
and actions of employees
 Employees are inspired by the energy and keenness of the charismatic leader
 Charismatic leadership style can be
applied when:
 Sell vision and achieve excellent results.
 Inspire loyalty among employees.
 Motivate employees as the leader is energetic
 Advantages
 Employees are inspired by the energy of the charismatic leader
 Employees are motivated to exceed their expectations and overcome their fears
 Employees are made to feel valued, which encourages them to work harder and
improve productivity levels
 Disadvantages
 Projects can collapse if the leader leaves the team
 Leader believes more in themselves than the team.
 Leaders are intolerant of challenges and regard themselves as irreplaceable
 Transactional Leadership style
 A transactional leader uses rewards and punishments to drive employees towards
business goals and targets.
 The transactional leader focuses on performance of employees to measure their
effectiveness in terms of the goals of the organisation
 Transactional leadership style can be
applied when:
 Employees have a low morale.
 The business structures are clear and do not have to change.
 Deadlines have to be met on short notice.
 Advantages
 Employees know what are expected of them.
 Encourages employees to work hard because they will receive rewards
 Employees are aware of the punishment, should the targets not be met
 Disadvantages
 Employees may feel demoralized if they’re punished for not meeting targets
 The leader may need to monitor the performance of employees to ensure that
targets are met.
 Measuring the performance of workers constantly may detract the leader from
performing other essential tasks
 Transformational theory
 Suitable for a dynamic environment, where change could be drastic
 Encourages followers to try new things.
 Leaders have the trust of their followers.
 Leaders lead by example and make workers interested in their work.
 Situational leadership theory
 Different leadership characteristics are needed for different situations
 The relationship between the leader and the employees are based on values of
trust
 A different leadership style would be adopted by the leader, based on the
prevailing circumstances at a particular time
 Effective leaders may adopt the leadership style that will ensure that the goals of
the organization achieved
 Leaders and followers
 Leaders lead by example and reward positive behaviour.
 Followers easily accept responsibility when something doesn’t work out
 Followers listen to what is expected of them and are willing to work as a team
 Innovation of some followers are stifled as they simply follow the leader and other
followers
 The role of personal attitude in
successful leadership
 Positive attitude releases leadership potential.
 Leaders' attitude may influence employees behaviour.
 Enthusiasm produces confidence in a leader.
 A leader's good/bad attitude can influence the success/failure of the business