3. “ The most important part of managing an organization, (where an
organization may be defined as consisting of more than one person),
is managing the people within that organization.”
“Organizations are not machines, even though some of us running them
would dearly love them to be so. They are communities of people, and
therefore behave just like other communities. They compete among
themselves for power and resources; there are differences of opinion and
of values, conflicts of priorities and of goals. There are those who want to
change things and those who would willingly settle for a quiet life. There
are pressure groups and lobbies, cliques and cabals, rivalries and
contests, clashes of personality and bonds of alliance”.
(Charles Handy, C., 1999).
4. Learning Objectives:
• Explain the functions of management
• Explain the qualities of leadership
• State the three major styles of leadership
• State the factors that may affect leadership styles
What Is Leadership?
5. What Is Leadership?
Leadership
The ability to influence
a group toward the
achievement of goals
Management
Use of authority
inherent in designated
formal rank to obtain
compliance from
organizational members
6. Management: managers responsible for getting things done, usually
through other people or the process of realizing organizational
objectives through people and other resources.
Management in all business areas and organizational activities refers to
the acts of getting people together to accomplish desired goals and
objectives. Management comprises, planning, organizing, stuffing,
leading or directing, and controlling an organizing (a group of one or
more people or entities) or effort for the purpose of accomplishing a
goal.
What Is Management?
7. Leadership: Leadership is stated as the process of social influence in
which one person can enlist the aid and support of others in the
accomplishment of a common task.
What Is Leadership?
9. Leaders:
• Deals with changes
• Works on the system
• Creates opportunities
• Seeks opportunities.
• Changes organizational rules
• Provides a vision to believe
• Motivates people
• Inspires achievement and
energizes people
• Coaches followers, creates self
leaders and empowers them
Managers:
• Deals with status-quo
• Works in the system
• Reacts to situation
• Controls risks
• Enforce organizational rules
• Seeks and then follows
directions.
• Controls team by direction.
• Coordinates efforts.
• Provides instruction.
11. • A leadership style where the leader makes
all decisions independently or without
consulting with others
• Advantages: good in certain circumstances,
such as urgent tasks or military actions
• Disadvantages: poor decisions, poor level of
employee motivation
Autocratic
Types of Leadership Style
12. • A leadership style where a leader
encourages employee participation in
decision-making
• persuasive or consultative
• Advantages: better decisions, employee
motivation .
• Disadvantages: delayed decision, long
consultation
Autocratic
Democratic
Types of Leadership Style
16. Transactional and Transformational Leader
• Contingent Reward
• Management by
Exception (active)
• Management by
Exception (passive)
• Laissez-Faire
• Idealized Influence
• Inspirational Motivation
• Intellectual Stimulation
• Individual Consideration
Transactional Leaders
Leaders who guide or motivate
their followers in the direction of
established goals by clarifying role
and task requirements
Transformational Leaders
Leaders who provide the four “I’s”
(individualized consideration,
inspirational motivation, idealized
influence, and intellectual
stimulation)
17. Characteristics of Transactional Leaders
Contingent Reward: Contracts exchange of rewards for effort, promises
rewards for good performance, recognizes accomplishments
Management by Exception (active): Watches and searches for deviations
from rules and standards, takes corrective action
Management by Exception (passive): Intervenes only if standards are not
met
Laissez-Faire: Abdicates responsibilities, avoids making decisions
18. Characteristics of Transformational Leaders
Idealized Influence: Provides vision and sense of
mission, instills pride, gains respect and trust
Inspiration: Communicates high expectations, uses
symbols to focus efforts, expresses important purposes in
simple ways
Intellectual Stimulation: Promotes intelligence,
rationality, and careful problem solving
Individualized Consideration: Gives personal attention,
treats each employee individually, coaches, advises
19. • Which Leadership Style Is Best?
• Depends on function of the leader, subordinates, and situation
• Some leaders can’t work well with high participation of subordinates
• Some employees lack the ability or desire to assume responsibility
• Participative decision making may be better when time pressure is
not acute
Managers as Leaders
