The document describes a group of workers clearing a road through dense jungle to reach the coast. The leaders organized the workers efficiently and monitored progress, which was excellent. However, one day someone climbed a tree and shouted "Wrong way!" questioning if they were doing the right thing. It then discusses that management focuses on doing things efficiently while leadership ensures the correct goals and vision. Different leadership styles like autocratic and democratic are also examined in how they influence decision making and motivation. The key highlight is that while the workers were efficiently clearing the jungle, someone realized they may have been focusing on the wrong objective or path, bringing into question if effective management was ensuring the right leadership and goals were in place.

1. CHAPTER 2
prepared by: zarina mat sapri

2.  A group of workers and their leaders are set a task
of clearing a road through a dense jungle on a remote island to get
to the coast where an estuary provides
a perfect site for a port. The leaders organise the labour into
efficient units and monitor the distribution and use of capital assets
– progress is excellent. The leaders continue to monitor and
evaluate progress, making adjustments along the way to ensure the
progress is maintained and efficiency increased wherever possible.
Then, one day amidst all the hustle and bustle and activity, one
person climbs up a nearby tree. The person surveys the scene from
the top of the tree.
 And shouts down to the assembled group below…
 “Wrong Way!!!!!”
(Story adapted from Stephen Covey (2004) “The Seven Habits of
Highly Effective People” Simon & Schuster).
 “Management is doing things right, leadership is doing
the right things”
(Warrenby: zarina mat sapriand Peter Drucker)
prepared
Bennis

3.  Leadership is the ability to influence
people (employees) towards the
achievement of organization goals.
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4. Leadership versus Management
Management Leadership
Promotes Promotes
stability, order vision,
and problem creativity, and
solving within change
existing
organizational M L
structure and
systems
Takes care of where you are Takes you to a new place
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

5.  Autocratic:
◦ Leader makes decisions without reference to anyone else
◦ High degree of dependency on the leader
◦ Can create de-motivation and alienation
of staff
◦ May be valuable in some types of business where
decisions need to be made quickly and decisively
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6.  Democratic:
◦ May help motivation and involvement
◦ Workers feel ownership of the firm and its ideas
◦ Improves the sharing of ideas
and experiences within the business
◦ Can delay decision making
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7.  Lais s ez-Faire :
◦ ‘Let it be’ – the leadership responsibilities
are shared by all
◦ Can be very useful in businesses
where creative ideas are important
◦ Can be highly motivational,
as people have control over their working life
◦ Can make coordination and decision making
time-consuming and lacking in overall direction
◦ Relies on good team work
◦ Relies on good interpersonal relations
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8.  Democratic:
 Encourages decision making
from different perspectives – leadership may be
emphasised throughout
the organisation
◦ Consultative: process of consultation before decisions
are taken
◦ Persuasive: Leader takes decision and seeks to
persuade others that the decision
is correct
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9.  Paternalistic:
 Leader acts as a ‘father figure’
 Paternalistic leader makes decision but may
consult
 Believes in the need to support staff
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10.  1) Trait theories:
 Is there a set of characteristics
that determine a good leader?
◦ Personality?
◦ Dominance and personal presence?
◦ Charisma?
◦ Self confidence?
◦ Achievement?
◦ Ability to formulate a clear vision?
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11.  Trait theories:
◦ Are such characteristics inherently gender biased?
◦ Do such characteristics produce good leaders?
◦ Is leadership more than just bringing about change?
◦ Does this imply that leaders are born not bred?
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12.  2) Behavioural:
 Imply that leaders can be trained – focus on the
way of doing things
◦ Structure based behavioural theories – focus on the
leader instituting structures – task orientated
◦ Relationship based behavioural theories – focus on the
development and maintenance of relationships –
process orientated
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13.  3) Contingency Theories :
 Leadership as being more flexible – different
leadership styles used at different times
depending on the circumstance.
 Suggests leadership is not a fixed series of
characteristics that can be transposed into
different contexts
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14.  May depend on:
◦ Type of staff
◦ History of the business
◦ Culture of the business
◦ Quality of the relationships
◦ Nature of the changes needed
◦ Accepted norms within the institution
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15.  4) Transformational:
◦ Widespread changes to a business or
organisation
 Requires:
◦ Long term strategic planning
◦ Clear objectives
◦ Clear vision
◦ Leading by example – walk the walk
◦ Efficiency of systems and processes
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16.  5) Invitational Leadership :
◦ Improving the atmosphere and message sent out by
the organisation
◦ Focus on reducing negative messages
sent out through the everyday actions of the business
both externally and, crucially, internally
◦ Review internal processes to reduce these
◦ Build relationships and sense of belonging and identity
with the organisation –
that gets communicated to customers, etc.
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17.  6) Transactional Theories :
◦ Focus on the management of the organisation
◦ Focus on procedures and efficiency
◦ Focus on working to rules and contracts
◦ Managing current issues and problems
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18. Maslow’s Hierarchy of Needs – Starter: Fill in the levels of
the hierarchy
Esteem Needs
Safety
Needs
Self Actualisation
Survival
Social Needs
Needs
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19.  McGregor looked at the way in
which employers and employees
traditionally viewed work – The
employer paid the money and
gave instructions, and the worker
did the job without asking
questions (THEORY X)
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20.  Theory X workers:
 Don’t like working
 Do as little as they can get away with
 Don’t like things to change
 Need to be told what to do
 Cant be trusted to make a decision
 Are only interested in MONEY
 Must be closely watched
 Cant be trusted or relied upon
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21.  Theory Y workers:
 Enjoy their work
 Will work hard to get rewards
 Want to see new things happening
 Will work independently
 Can be trusted to make decisions
 Are motivated by things other than money
 Can work unsupervised
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22.  As a manager you need to get an important order out quickly, by
the end of this week at the latest!!!
 1) Outline how you would put this to the workers if you believed in
Theory X (How are you going to convince workers to work
quickly??)
 2) Outline how you would put this to the workers if you believed in
Theory Y
 3)What are the three main differences in the two approaches
 4)Which theory would you personally support? State your reason
as fully a possible
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23.  Leadership style may be dependent
on various factors:
◦ Risk - decision making and change initiatives
based on degree of risk involved
◦ Type of business – creative business
or supply driven?
◦ How important change is –
change for change’s sake?
◦ Organisational culture – may be long embedded
and difficult to change
◦ Nature of the task – needing cooperation? Direction?
Structure?
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