Leadership

1. Leadership Leadership refers the ability to influence and direct people to go in a particular direction to achieve the objectives of the firm.

2. Leadership involves • Directing people • Personality&charisma –the individuals personality and charm to inspire enthusiasm among the audience. • Setting an example • Delegating

3. Advantages Mgr had more time Less stress/risk of work overload Subordinates gain experience and more job satisfaction Work get done faster Disadvantages Subordinates may not be able to do the work/make decisions Mgrs fear subordinates may do a better job and may undermine the managers status, control and power. Delegation

4. Types of Leaders1. Autocratic Leaders • These leaders like to be in control. They do not share authority with subordinates but prefer to make all decisions themselves. • They have little trust or confidence in the ability of other staff and are unwilling to delegate power. They tend to ignore the views of others. • In some instances they may resort to intimidation & fear to persuade others.

5. Work gets done Decisions are made quickly Suits org’ns where discipline is important ie) The Army. Useful in crisis situations, Valuable opinions are not listened to. Mgmt may become overloaded with work. Subordinates may feel frustrated & demotivated May cause industrial relations disputes. Advantages and Disadvantages

6. 2. Democratic Leadership • These leaders are willing to share authority and decision making with staff. They have trust and confidence in the staff and delegate power and responsibility where necessary. • They make decisions only after consultation with others and prefer to persuade others through the use of reasonable argument.

7. Subordinates feel valued and are motivated and become loyal to the firm. Delegation encourages initiative & intrepreneurship Increased levels of trust maintains good industrial relations. Slower decision making Quality of decisions may decline as so many opinions and views taken into account. Advantages and Disadvantages

8. 3. Laissez faire Leadership • Also known as free rein or spectator style, involves giving staff general goals and targets to aim for and then giving them the authority to achieve these in whatever way they think best. • They have considerable trust in staff. They delegate power & responsibility freely to staff and are content to let subordinates to make most of the decisions. Only very important issues are dealt with by the manager. • They are willing to listen to the opinions of others before making decisions. • Suitable to artistic and research work.

9. Faster and better decisions are made by subordinate who is closest to issue Delegating responsibility & authority considerably challenges and motivates subordinates Initiative and intrapreneuership are strongly encouraged Inexperienced/untrained staff may not be equipped to handle the responsibility Lack of supervision and control may result in poor decisions being made Advantages and disadvantages

10. Importance of effective leadership • Improved efficency (2)-a good leader gives clear instruction and direction to employees. E’ees understand and do exactly what is expected of them. Time and other resources are not wasted.(3) • Improved co-ordination(2)-an effective leader inspires e’ees to share his vision for the future of the business, and they all pull together in the same direction to achieve it.(3) • Employee retention(2)-a good leader delegates tasks and e’ees like being trusted&involved in the business and are thus more likey to continue working for the business. This also help to attract best e’ees.(3) • Adapt to Change(2)-a good leader helps a business to change for the better. He acts as a role model for e’ees by putting in the effort needed to make the change happen. This encourages e’ees to accept the change aswell. (3)

11. Motivation • This is the ability to get people to work hard and to contribute their best effort, in order to achieve the objectives of the firm. • It helps a manager to achieve the business goals by making every employee willingly play their part in achieving the goals. • By understand the forces that motivate people,managers can create the conditions that will encourage everyone to work harder &contribute their best to achieve the goals. • Two theories of motivation

12. 1. Maslow’s Hierarchy of Needs

13. Maslows Theory of Motivation • Known as the hierarchy of needs • ‘Maslows hierarchy of needs’ says that all human needs can be arranged in a hierarchy in order of importance.See diagram • Our needs begin with the most basic physical needs for food and shelter and lead right up to the most complex psychological needs for self esteem and self actualisation. • Everyone starts at the bottom with physiological needs. That need is the most important to a person until it is satisfied. Eg. A person who is literally starving may steal food. He is not concerned with what his friends might think of him(esteem needs) b/c he is stuck on physiological needs.

14. Maslows • Once a need is satisfied, it no longer motivates a person. Satisfying the next need up is now what motivates her. Employees are always motivated to move to the next level. • Therefore, it is important for a manager to know which need is dominating each employee/current level. They can be motivated to work harder if the manager satisfy that need.

17. McGregor’s Theory of Motivation • Studied what managers believe about their workers. • Research showed him that managers could be grouped according to their attitude to motivating staff. • 2 types of Managers • Theory X and Theory Y Managers

19. Theory X Managers believe employees • Dislike work, are lazy and are only motivated by money and will avoid work where possible. • Have no ambition or desire to take part in workplace decision making and must be given orders by a tough decisive boss • Dislike change and will always resist it

20. Result : Theory X managers believe that they should • Only offer financial incentives and material rewards to get work done. • Closely supervise staff to ensure they do the work • Avoid consulting with staff when deciding what work is to be done and how. • Threaten staff with sanctions such as loss of bonuses, unpleasent duties, suspension and dismissal to ensure full co operation.

21. Theory X • Is also called the traditional “controller” style of management. They tend to behave in a autocratic manner, distrust their staff and try to control them as much as possible. In turn their staff will probable resent this approach, become uncooperative and try to do ad little work as they can get away with.

22. Implications of this style • Conflict - as the manager has total control over the workers, does not consult workers in decision making and threaten workers this can cause conflicts between management and staff which can lead to industrial relations disputes. • Low morale – because workers are closely supervises and not involve in decisions or delegated any tasks they do not feel valued and therefore they have low morale.

23. Implications … • Work overload for manager – because the manager believes the workers dislike work and do not have any desire or ambition to take part in decisions the manager do not delegate any tasks and therefore become overloaded with work. • Lack of intrapreneurship(2) – b/c the manager delegates little authority/does not trust employees and they are not asked about their ideas or opinions they are less likely to use their own initiative (3)

24. Implications continued • Fewer opportunities for promotion • Lower productivity • Lower quality

25. Theory Y Managers believe workers • Can enjoy work and can be trusted to work hard and behave responsible as long as their job is interesting and challenging. • Have ambition, imagination and intelligence if they are encouraged. • Are open to change if they are consulted and fully involved in deciding how the work should be done.

26. Result: Theory Y Managers believe that they should • Provide interesting and challenging work that staff will find stimulating • Provide staff with the freedom and autonomy to get on with the job with unnecessary interference. • Consult regularly with staff about what work is to be done and the best way to do it. • Provide plenty of encouragement and praise for work well done.

27. Theory Y • Is also called “facilitator” manager b/c they facilitate/allow staff to get on with the work in the way they think best. • If Managers adapt a theory Y attitude staff are more likely to be co operative and morale and motivation will rise. Democratic and laissez faire managers have a Theory Y attitude to their staff.

28. COMMUNICATIONThird Skill of Management • Refers to the transfer of information from one person to another or between organisations. • The sender sends a message through a medium and the receiver must interpret it and act on it. • Communication can be verbal, written or visual. • Communication can be internal or external.

29. Skills needed include • Ability to speak clearly • Ability to listen carefully • Ability to get clear feedback • Ability to write clearly and concisely • Ability to select the best method • Ability to read and understand • Ability to use ICT effectively

30. Communication/Communicating • Talking/speech • Letters/telephone/tv/reports/ • Facebook/social networking/Texting • Email • Disruptions=barriers • Notices/advertising • Internal/external • Sign language • Eye contact • Aids • Avoid info overload • Stakeholders

31. Basic Elements of Communications • Sender l • Message (via a medium) l • Receiver l • Feedback

32. Internal-communicating Communicating with people within a business organisation. Types: Email, memo, intercom, phone, text, face to face, notice board, meetings, report, pager, newsletter, intranet Methods of Communication

33. External-communicating Communicating with people/other businesses outside the businessorganisation. • Types: Fax, (advertising) newspaper, tv, radio, internet, press release, letters, emails, video conference, press conference, meetings, text, face to face, EDI electronic data interchange,

34. External Communication • Banks – The entrepreneur meets with the banker to apply for a loan • Suppliers – The production manager sends an order to the supplier for more materials. • Customers - the marketing manager writes back to a customer in response to a complaint. • Government – The entrepreneur sends in her annual tax return.

35. Types of Communication • Verbal/Oral – speaking • Written – writing • Visual - seeing

36. 1. Verbal/Oral Communication • One to one discussions, telephone discussion, meetings, lectures, seminars etc.. • Advantages: • Gives each person the opportunity to observe the others attitudes, body language • It is possible to clarify and rectify mistakes • An agreement can reached more quickly. (i.e. trade unions in resolving disputes) • Disadvantages: • No record of it may exist unless recorded • Speaker may not be convincing and may miss certain things

37. 2. Written Communication • Letters, business documents, email, computer print-out, fax, memo, reports • There are times when communication must be in writing: • To have a permanent record of something that was agreed (contract) • To eliminate any misunderstanding – very important is resolving disputes • If the receiver is located far away • If the message is complex and requires careful interpretation

38. 3. Visual Communication • In business, a firm will have a lot of information that they must present on a regular basis such as seals, purchases, stock levels etc…and therefore use graphical representations to illustrate their figures. • Reasons for using graphical presentations: • People can grasp an overall picture of the information being discussed • They are good at highlighting points for concern. • Visual information can be absorbed clearer and quicker.

39. Forms of Presenting Visual Information • Bar Charts • Pie Charts • Pictogram • Line Graph • Histogram Break-even Chart • Table

40. Summary Examples Advantages Disadvantages

41. 1. Bar ChartNo. of Viewers of TV Dramas

42. 2. Pie ChartsPercentage of type of films people like to watch

43. 3. Pictogram

44. The importance of effective communication to a Business • Good industrial relations – if managers communicate with their employees about work methods, new ideas, have upward and downward communication. • Better decision making – if managers communicate with each other on new product/business proposals • Eliminate waste/bottlenecks – each employee knows what they are to do and this reduced duplications and avoids waste . • Intrapreneurship – managers that communicate with their staff will listen to staff ideas and in turn this creates Intrapreneurship • Increase in sales/profits- b/c of increased moral in the business customers will be attracted to the business and b/c of effective advertising the public will be aware of the products/services that the business provides.

45. Barriers to effective Communication • Noise • Lack of Trust/Authority • Language • Wrong timing • Incorrect medium • Misinterpretation • Technology breakdown • Lack of feedback • Poor listening skills • Information overload • NB How to overcome these barriers –important exam question.

46. Barriers to effective Communication The Sender: • Not sending a message when you should and choosing an inappropriate time to send the message. The Message: • Sending inaccurate information • Sending a badly worded/composed message. • Message is too long and gets ignored.

47. Barriers that lead to communication breakdown Medium • Selecting the inappropriate method of communication that causes offence, ie) • Using medium that is too slow. • Technological medium used is unreliable and prone to breakdowns. Receiver: • Message sent to wrong receiver • Receiver not listening/unable to listen/misinterprets message • Receiver has no way to provide feedback • Receiver mistrusts the sender, doesn’t believe the message.

48. How to overcome these barriers

49. Effective Communication • Brief –time is valuable in business so communications should be as brief and to the point as possible. ie) An e’ee should not send a 10 page report when a short note would be perfectly adequate. • Clear –the info should be communicated in a way that is easily understood.ie) complex info such as sales statistics should be communicated using diagrams/illustrations. • Suitable –private/sensitive info should not be communicated using a medium that lacks privacy. Business partners may hold a meeting to discuss confidential business ideas. It is important to respect the feelings of the receiver when communicating messages that contain personal info/bad news. ie) redundancy

50. Effective Communications are • Accurate – effective communication must be accurate as inaccurate info can lead to wrong decisions been made. A written message or face to face meeting might be preferable if accuracy is important. Numbers, calculations or technical data are best communicated in writing. (Telephone calls can be subject to bad connections.)