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IB Business - 2.3 Leadership and Management
IB Business - 2.3 Leadership and Management
3 LEADERSHIP AND
MANAGEMENT
SYLLABUS
The key functions of management A02
Management vs Leadership A02
Leadership Styles:
• Autocratic
• Paternalistic
• Democratic
• Laissez-Faire
• Situational
A03
How ethical considerations and cultural differences may influence leadership and
management styles in and organization A03
THE FUNCTIONS OF MANAGEMENT
The term functions of management refers to the roles and
responsibilities of managers. Five key functions are listed below:
Planning
Organizing Commanding
Acronym:
P – Planning
O - Organizing
3C – Controlling
Coordinating
Commanding.
Coordinating Controlling
PLANNING
Managers are responsible for setting the course of action to achieve
organizational objectives. They are involved in setting both tactical
plans (short term) and strategic plans (long term).
ORGANIZING
Managers organize resources in order to achieve corporate
objectives. This might include delegating or allocating tasks to
workers to ensure that deadline are met.
CONTROLLING
Managers are responsible for the performance, health and safety of
their teams. Corrective measures should be taken if targets are not
being met.
COMMANDING
Managers give instructions and orders to their teams and
subordinates in order to achieve business objectives. They should
enforces discipline in the workplace to prevent slack and to prevent
non-compliance.
COORDINATING
Managers have the responsibility for ensuring that all departments
strive to achieve the goals of the organization.
A LEADER VS A
LEADERSHIP MANAGEMENT
Motivating & inspiring Directing & monitoring
others others
MANAGER
Innovators who encourage
others to accept change
Stems from personal
Problem solvers
Stems for position within
organization
qualities & traits Skill & qualified for the
A leader is someone who influences and Natural abilities & instincts role
inspires others to get things done. Leaders Believes in doing the right Believes in doing things
tend to focus on achieving broader goals or thing right
visions with no definite timeframe in mind. Respected & trusted by Not always followed due to
Leadership is the art of influencing, their followers due to personality status is the
personality primary driver
motivating and inspiring others to achieve Creates & develops a Accepts & conforms to the
organizational goals. culture of change routines of the organization
A manager is a person responsible for Focus on the future Planning, coordinating,
controlling or administering an organization Risk takers and decision organizing, commanding,
or group of staff. They tend to focus on makers controlling and setting
Focus on mission and vision objectives
achieving specific goals within a definite
statements Mainly concerned with
time frame. Management is the art of Strategic decision making processes
getting things done through people.
Leadership styles refers to the way in which managers and leaders
provide direction, implement organizational plans and motivate
people. There are five main types:
AUTOCRATIC
SITUATIONAL DEMOCRATIC
LAISSEZ-FAIRE PATERNALISTIC
LEADERSHIP STYLES
An autocratic leader is one who makes all the decisions and prefers
not to delegate responsibility. They believe in command and control.
They avoid discussions with employees that are not involved in decision
making.
Little supervision
Advantages Disadvantages
The freedom given to employees allows them to Individual foal setting could conflict with
excel inn what they do best, without constraints organizational objectives, especially as there is
imposed by management an absence of management control
Provides opportunities for staff with vision and Often criticized for the poor definition of the
intrapreneurial skills role/purpose o management
Autonomy decision making can have positive As management takes a ‘hands-off’ approach,
impacts on staff motivation and staff retention monitoring and control of the organization’s
levels operations become very challenging.
Situational leadership is a leadership style that, unlike
the others, is not based on any single dominant
approach.
In essence, it is about using the right leadership style
for the right situation.
Situational leadership assumes managers and leaders
are able to change and adopt their style for the right
SITUATIONAL situation.
CLOTS is an acronym for the factors affecting
situational leadership style.
Culture – What type of culture exists within the organization and what are the
group norms?
Leader – how much trusts do leaders have in their employees, how
experienced are they as leaders and what is their preferred leadership style.
Organizational structure – Tall or flat? Big span of control or little?
Task – What is the tasks difficulty, urgency, and importance? Are the tasks
routine, low skilled or highly complex?
Subordinates – what are the levels of skills, motivation and unity of the
employees?
ADVANTAGES AND DISADVANTAGES OF A SITUATIONAL STYLE
Advantages Disadvantages
HOW DO ETHICAL
CONSIDERATIONS Ethical considerations are based on a leaders personal
values and moral judgement, which in turn determines the
extent to which leaders accept responsibility for ensuring
INFLUENCE ethical conduct for their organization.
LEADERSHIP AND Due to the increasing external pressures for business to act
in a socially responsible manner, there has been greater
MANAGEMENT scrutiny of business activities.
ORGANIZATION?
considerations in their decision making and in the ways they
influence others in terms of motivation and productivity.
MANAGEMENT leaders.
Knowledge and understanding of such differences can largely
STYLES IN AND affect how managers behave in a cross-cultural situation.
Some countries attend meetings late, other cultures emphasize
ORGANIZATION? on greetings and exchanges of business cards. Lastly, some
cultures like things straight to the facts and others like ideas.