Leadership • A leader inspires and influences others to achieve goals • Leaders focus on very broad goals
Management • Problem solving by reasoning not emotion • Should spend their time organizing human and capital expenses. • Managers will be more worried about smarter objectives than leaders
Levels of managers • Senior management higher-ranking managers plan and oversee long-term aims. Responsible for middle managers. • Middle management – run individual departments, set departmental objectives which match the firms aims. Are accountable to Senior management and responsible for their departments. • Junior management low ranking managers in charge of day to day operations.
Managers have official power but leaders are locked at as the best people for different situations.
Official vs informal leaders • Official leader has power to give orders • Informal leaders have a flair or charisma to influence people
Successful leaders take an interest in what is happing inside there department or organization.
Managers need to have certain characteristics • Management of attention – need to have a clear vision of what they want. • Management of meaning – need to communicate to others what they want. • Management of trust • Management of self – need to be able to understand their own weaknesses
Work of managers • Routine tasks – attending meets, appraising staff • Planning tasks – planning daily work for staff and setting up systems for unforeseen tasks • Communication tasks – sharing and passing on information
Most experts feel that proper management is done by inspiring people to do a their job well instead of making them do something .
Different cultures demand different things from their leaders. • Some businesses use more of a committee decision system (consensus model). Japan Netherlands • Others stick to the traditional roles of leaders making decisions (Charismatic model). US, UK China
Autocratic management style • When a leader makes all the decisions and only delegates work to employees. • Can be very useful in a crisis when quick decisions are essential. • Usually used when workers are unskilled. • Because all information is top down managers do not get feedback from staff. This can cause workers to feel ignored and managers can’t get reliable information.
Democratic style • A leader who discusses and involves employees in decision making process. • Increased morale and better work environment can be benefits. • Decision-making can be delayed and sometimes ineffective in a crisis.
Laissez-faire style • Managers have little influence on workers decisions on day to day things. • Encourages high levels of trust and motivation. • Works well with creative businesses • Disadvantages are that decisions can be uncoordinated and delayed. Also workers need to be honest since management is not watching all the time.
Situational leadership • Leadership style that will change depending on the situation.
Factors that affect the type of leadership • Culture – how does the business do things • Leader – what type of leader is he/she • Organization – tall or flat (span of control) • Task – Which things are important or not • Subordinates – What are the skills and motivation and unity of the employees.
Leaders need to be carful which leadership style they choice. • Leaders in business tend to lean to a more democratic style more and more. • Managers need to set a good example for the employees. • Managers will do best if they delegate work properly then check that it is done.
Management by walking about suggests that leaders need to be seen by they works not just hide in an office.
5 P’s of effective leadership • Pay attention to what's important • Praise what you want to continue • Punish what you want to stop • Pay for the results you want • Promote people who produce results
Because of globalization some managers have to adopt their style for the different countries they deal with.