Pearson BTEC Level 5 Higher National Diploma in Business

Unit 4: Leadership and

Management
Aims of the Module
❖ To understand the difference between the function of a
manager and the role of a leader.
❖ Characteristics, behaviours and traits that support effective
management and leadership.
❖ Theories that have shaped the understanding of leadership and
management and how these have provided a guide to action for
managers and leaders who want to secure success for their
businesses.
❖ Leadership styles, how and why they are used and the extent to
which they are effective.
❖ An understanding of motivational strategies, develop motivational
strategies covering intrinsic and extrinsic aspects of motivation
❖ Importance of managing performance in achieving continuous
improvement.
Learning Outcomes
By the end of this unit a student will be able
to:
❖ LO1 Examine leadership and management theories and principles, and
their impact on the effectiveness of an organisation
❖ LO2 Review the influence of different leadership and management
styles on the culture of organisations
❖ LO3 Develop a motivational strategy to optimise organisational
performance
❖ LO4 Apply leadership and management approaches to managing
performance to ensure continuous improvement.
 Learning Outcomes and Assessment Criteria
Assignment 2
Pass Merit Distinction
LO1 Examine leadership and management theories andprinciples,
and their impact on the effectiveness of an organisation

P1 Discuss different theoriesof M1 Analyse the impact of the D1 Critically evaluate theimpact of
leadership in relation to the application of leadership and different approaches to leadership
management activities indifferent management theories on the and management.
organisations. effectiveness of a large organisation.
P2 Explore different theoriesof
management in relation to the
management and leadership
activities in different organisations.

LO2 Review the influence of different leadership and

management styles on the culture of organisations
P3 Assess the application ofdifferent M2 Compare the impact of leadership
leadership and management styles and managementstyles on decision
in a range of business situationsin making in different organisations.
different organisations.
M3 Evaluate the importance of
P4 Examine the factors that organisational culture on the
influence the development of the performance of different
culture in organisations. organisations.
 Learning Outcomes and Assessment Criteria
Assignment 2
Pass Merit Distinction
LO3 Develop a motivational strategy to optimise
organisational performance
D2 Produce a comprehensive
P5 Produce a motivational strategy M4 Produce a detailed motivational motivational strategy that
for an organisation that supports strategy for an organisation that effectively addresses all variables of
optimal achievement of addresses intrinsic and extrinsic motivation to enhance
organisational objectives. motivation. organisational performance.
LO4 Apply leadership and management approaches to
managing performance to ensure continuous improvement.
D3 Make recommendations to
P6 Apply to a range of business M5 Assess how leadership and
improve performance management
situations, appropriate leadership management approaches for
that will ensure continuous
and management approaches for managing performance supports
improvement.
managing performance and continuous improvement.
continuous improvement.
Recommended Resources

Textbooks
❖ADAIR, J. (2019). Develop Your Leadership Skills: Fast, Effective Ways to
Become a Leader People Want to Follow. Kogan Page.
❖KELLY, P. and COLE, G. (2020) Management: Theory and Practice. 9th Ed.
Cengage.
❖MULLINS, L. J. (2019) Organisational Behaviour in the Workplace 12th Ed.
Harlow: Pearson.
❖NORTHOUSE P. (2018) Leadership: Theory and Practice. 8th Ed.
London: SAGE.
❖ ROBBINS S. P., JUDGE T. A. (2013) Organizational Behavior, 15th ed Prentice Hall,
ISBN-13: 978-0-13-283487-2
❖ORTI, P and MIDDLEMISS, M. (2019). Thinking Remote. Inspiration for
Leaders of Distributed Teams. Virtual Not Distance
LEARNING OUTCOME 1

LO1 Examine leadership and management theories

and principles, and their impact on the
effectiveness of an organisation
Readings
❖ADAIR, J. (2019). Develop Your Leadership Skills:
Fast, Effective Ways to Become a Leader People
Want to Follow. Kogan Page.
❖KELLY, P. and COLE, G. (2020) Management:
Theory and Practice. 9th Ed. Cengage.
❖MULLINS, L. J. (2019) Organisational Behaviour
in the Workplace 12th Ed. Harlow: Pearson.
❖NORTHOUSE P. (2018) Leadership: Theory and
Practice. 8th Ed. London: SAGE.
 Topic 1.1
Definitions of management
Contents

❖Definition of management
❖Functions of manager
❖Nature of management duties
❖Levels of management
❖Types of managerial skills
What is management?

❖ Management: the
activity of getting
things done with the
aids of people and
other resources
❖ Manager: someone
who gets things done
with the aids of people
and other resources
Stewart (1967)
Purpose of management

❖Collective goals set for organization &

communicated to members
❖Collective goals to be met and also be
harmonised with goals of individual members =>
ensure their cooperation
❖Organisational structure designed and maintained
❖Collective or corporate identity needed in dealing
with employees and stakeholders => creating
corporate identity and shared values or culture
❖Interests of stakeholders assured and satisfied
Purpose of management

By sector
❖In private sector, making a profit and creating
value for shareholders, and producing and
delivering valued products and services at a
reasonable cost for customers
❖In public sector, ensuring services effectively
delivered to community
❖In voluntary sector, achieving purposes of charity
and keeping faith of community and donors.
❖In all sectors, exercising social responsibility and
providing rewarding employment and
development opportunities for employees.
Functions of management
Henri Fayol (1967)
❖Planning: select objectives & means (plans, policies,
programs, procedures), be adopted to achieve
❖Organising: work divided & structured into tasks &
jobs, within formal structure of authority &
communication => includes work scheduling & work
allocation
❖Commanding: instructing & motivating subordinates
to carry out tasks
❖Co-ordinating: harmonising activities of ind. &
groups, reconcilling differences in approachs, timing &
resources requirements
❖Controlling: monitoring activities of individuals &
groups => ensure performance is in accordance with
plans, standards & objectives set.
Nature of management duties
H.Mintzberg (1980)

Managers have to wear different ‘hats’, depending what

is going on at the time => managerial roles
❖Interpersonal roles: management is considered as
interpersonal process
❖Informational roles: manager likely to have
communication and wider network of contacts, the
best person to gather and spread information
❖Decisional roles: his/her authority and his/ her job is
to make decisions
Interpersonal roles
Henry Mintzberg (1991)

Management considered as interpersonal process,

and outlined 3 basic roles that manager adopt in
relation to other people
❖Figurehead: performing ceremonial & social duties
as organisation’s representative
❖Leader: selecting & training team members, &
uniting & inspiring team to achieve objectives
❖Liaison: communicating with people outside the
work unit or the org.: building up informal system
of info. exchange
Informational roles
The mgr does not leave meetings or hang up a phone
call in order to come back to work. In a large part,
communication is his work’. A mgr is likely to have a
wider network of contacts within and outside the
organisation than his subordinates, so he is the best
person to gather and spread information.
▪ Monitor: receiving info from environment & from
within org.
▪ Disseminator: passing on info to subordinates
▪ Spokesman: transmitting info to interested parties
outside the work unit or organisation
Decisional roles

❖Entrepreneur: being ‘fixer’, mobilising resources to

get things done & to seize opportunities
❖Disturbance-handler:coping with unexpected,
rectifying mistakes & getting operations & relationship
back on course if needed
❖Resources allocator: distributing limited resources
in the way that will most efficiently achieve defined
objectives
❖Negotiator: barganing
Levels of management

❖Management levels characterized by 4 features:

number of employees, activities performed, and
managers’ titles.
❖Managers given more authority and responsibility at
higher levels
 Levels of management
top management level

management
Executive
middle..
low... CEO

Vice-presidents, division heads, secretaries,

chancellors, directors, controllers Top
management

Department heads, deans, branch

managers
Operative
managers
Middle managers

Supervisors, foremen, head nurses,

shiefs, team leaders First-level managers

managerial
level

Non
Sales presentatives, workers,
accountants, clericals, …. Non managerial personnel
Types of managerial skills

❖ Conceptual skills: Mental ability needed to acquire, analyze,

and interprete information received from various sources
and to make complex decisions
❖ Technical skills: Ability to use knowledge of specific field,
such as accounting, engineering, production or sales
❖ Human relations skills: Ability required to understand other
people and interact effectively with them
 Group Exercise
❖List different titles Vietcombank

❖Discuss their differences and similarities,

❖Discuss whether the actual function/role is
different from a manager
Hồng Quang - Giám đốc khối nhân sự ( human resource management) HUMAN RELATIONS SKILL
Corlin Richard Dinn - Giám đốc khối CNTT và chuyển đổi số (responsibility for information technology)
TECHNICAL SKILL

recruit staff, performance of staff

technology, digital and technology
 Topic 1.2
Theories of management
 School of management thoughts
# classical
do not base on structure, technical requirement, theory
it's human behavior (manager and employee)

HUMAN
CLASSICAL SYSTEM CONTINGENCY
RELATIONS

depend on context, can be changed

Emphasis on Attention to Integration of No one best
purpose, social factors at classical & design of
formal work, group, human organization.
structure, leadership, relations Form of
hierarchy of informal approaches. structure,
mgt, technical organisation, & Improtance of management,
requirements & behavior of socio-technical & success of
common people system. the org,
principles of The org. within depends on a
org. its external range of
base on structure environment situational
different components variables
relation between system and environment
consist classical and human relations
Classical management theories
❖Scientific Management - F.Taylor
❖Classical administration (principles of
management – Henry Fayol
❖Bureaucracy – Max Weber
Scientific management - F.Taylor (1)

❖ Frederick Winslow Taylor (1856–1915)

❖ Principles of Scientific Management, published in
1911
❖ Applying scientific methods to management of
workers greatly improving productivity:
- Optimizing way that tasks performed
- Simplifying jobs enough so that workers trained to
perform specialized sequence of motions in "best"
way.
Scientific management - F.Taylor (2)
Scientific approaches required to:
❖Develop science for each operation to replace opinion
and rule-of-thumb
❖Determine accurately from science correct time and
method for each job
❖Set up suitable organization to take all responsibility
from workers except that of actual job performance
❖Select and train workers
❖Accept that management itself be governed by science
developed for each operation and surrender arbitrary
power over workers, i.e. cooperate with them.
Scientific management - F.Taylor (3)
Scientific management required to
❖Stop worrying about division of fruits of production
between wages and profits
❖Share in prosperity of firm by working in correct way
and receiving wage increases of between 30 per cent
and 100 per cent, according to nature of work
❖Give up ideas of soldiering and cooperate with
management in developing science
❖Accept that management would be responsible, in
accordance with scientific approach, for determining
what was to be done and how
❖Agree to be trained in new methods, where applicable
Classical administration - Henri Fayol (1)
❖ Henri Fayol (1841–1925)
❖ French industrialist
❖ Popularized the concept of universality of
management principles
- All organization structured and managed
according to curtain rational principles
- Seldom apply same principles twice in identical
conditions
- Allowance made for different changing
circumstances
Classical administration - Henri Fayol (2)
Principles of Management - Henri Fayol (4)
❖ Division of work: Reduces span of attention or effort for
any one person or group. Develops practice and familiarity
❖ Authority: Right to give orders, not considered without
reference to responsibility
❖ Discipline: Outward marks of respect in accordance with
formal or informal agreements between firm and
employees
❖ Unity of command: One worker, one superior
❖ Unity of direction: One head and one plan for group of
activities with same objective
❖ Subordination of individual interests to general
interest: Interest of individual or group not prevail over
general good
❖ Remuneration: Pay should be fair to both employee and
firm
Principles of Management - Henr Fayol (5)

❖ Centralization: Always present to greater or lesser

extent, depending on size of company and quality of
managers
❖ Scalar chain: Line of authority from top to bottom
❖ Order: Place for everything and everything in place; right
worker in right place
❖ Equity: Combination of kindliness and justice towards
employees
❖ Stability of tenure of personnel: Employees given time
to settle into jobs, even though lengthy period in case of
managers.
❖ Initiative: All levels of staff encouraged to show initiative
❖ Esprit de corps: Harmony is great strength; teamwork
should be encouraged
Bureaucracy theory - Max Weber (1)
❖Max Weber (1864–1920)
❖Sociologist
❖Developed notion of bureaucracy in 1947
❖Three grounds for existence of legitimate authority
- Charismatic leadership: Special power or attribute,
expecting devotion form staff and followers
- Traditional or patriarchal leadership: Authority
bestowed by virtue of hereditary entitlement (family
firm or monarchy…)
- Bureaucracy: Authority bestowed by dividing
organization into jurisdictional areas ( production,
marketing, sales…) with specific duties; human activity
organized and systematic processes and organized
hierarchies required to maintain order, to maximize
efficiency, and to eliminate favoritism.
Bureaucracy theory - Max Weber (2)

General characteristics of bureaucracy

- Hierarchy: Management organized into layers.
Each layer controlling and supervising lower
layers
- Specialization: Employment based on ability,
not personal loyalty
- Impersonal nature: Employees working within
impersonal rules and regulations
- Professional nature of employment: Full-
time work, promotion and pay scales prescribed
according to seniority and achievement, position
or office held
Bureaucracy theory - Max Weber (3)

General characteristics of bureaucracy

- Rationality: Hierarchy of authority and
structure clearly defined, duties established and
measures of performance set
- Uniformity: Performance of tasks uniformed
- Technical competence: Rarely questioned
within area of expertise
- Stability: Stable partly because of rigid
adherence to rules and regulations and chain of
commands
Group discussion
❖Topic1: Investigate a company of your choice
and discuss how scientific management has
influenced the organization. Evaluate how
scientific management is used, commenting on
benefits and drawbacks.
❖Topic 2: Discuss why many organizations have
either been unable or unwilling to avoid the
bureaucratic form of organization.
 Topic 1.3
Theories of Leadership
What is Leadership?
❖ Leadership is the process of influencing others to
work willingly toward goals, to the best of their
capabilities, perhaps in a manner different to that
which they would otherwise have chosen
❖ Leadership is seen as a social process in which an
individual influences behaviours of others without
the use or threat of violence
❖ Leader is someone who exercises influences over
other people
E.g. Leader can influence interpretation of events,
choice of objectives and strategies, motivation of
people to achieve objectives, organization of work
activities, maintenance of cooperative
relationships,
Styles of Leadership

❖Leaders accept responsibility for the outcomes of the

groups they lead
❖Leader’s style of leading can affect motivation,
effectiveness and efficiency of his/her followers
❖Four different styles of leadership
- Dictatorial style
- Autocratic style
- Democratic style
- Laissez-faire style
Styles of Leadership
❖ Dictatorial style: Force subordinates to
work by threatening punishment and
penalties
❖ Autocratic style: Decision-making
centralized in hands of leaders, who don’t
encourage participation of subordinates,
offering consideration and respect to
workforce but remaining full rights in
decision-making
❖ Democratic style: Decision-making
decentralized and shared by subordinates
in participative group action but not to
allow preference for democratic social
systems to blind managers into favouring
democratic management styles
❖ Laissez-faire style: Subordinates given
little or no direction at all and allowed to
establish own objectives and make all
own decisions
Leadership theories and skills

❖Traits theory of leadership

❖Transformational and transactional leadership
❖Behavioral theory: Action centred leadership
❖Situational leadership
❖Systems leadership
Traits theory of leadership (1)
❖All people have certain traits or characteristic way of
behaving.
❖Certain qualities, personality characteristics or traits
make a good leader
❖Leaders possess some unique and inherent set of
traits that set them apart from normal people
❖Leadership qualities:
- Physical traits: drive, energy, appearance and height
- Personality traits: adaptability, enthusiasm and self-
confidence
- Social traits: cooperation, tact, courtesy,
administrative ability
Traits theory of leadership (2)
Traits theory of leadership (3)
 Traits theory of leadership (4)
Big Five Personality Factors
The tendency to be depressed, anxious, insecure,
Neuroticism
vulnerable, and hostile
The tendency to be sociable and assertive and to have
Extraversion positive
energy
The tendency to be informed, creative, insightful, and
Openness
curious
The tendency to be accepting, conforming, trusting, and
Agreeableness
nurturing
Conscientiousnes The tendency to be thorough, organized, controlled,
s dependable, and decisive

Table 2.3 Big Five Personality Factors

Source: Goldberg, L. R. (1990). An alternative “description of personality”: The Big-Five factor structure. Journal of Personality and Social Psychology, 59, 1216–1229
Class discussion
Case 2.1: Choosing a New Director of Research*

Questions
1. Based on the information provided about the trait approach, if
you were Sandra, whom would you select?
2. In what ways is the trait approach helpful in this type of
selection?
3. In what ways are the weaknesses of the trait approach
highlighted in this case?

* P84
Action Centred Leadership (1)
❖ Focus on what leaders actually do
❖ Effectiveness of leader dependent upon meeting
three areas of need within work group
- Common task needs
- Team maintenance needs
- Individual needs
=> Adair symbolises these needs by three
overlapping circles
Action Centred Leadership (2)
Action Centred Leadership (3)
❖Task needs: achieving objectives of work group,
defining group tasks, planning work, allocation of
resources, organisation of duties and responsibilities,
controlling quality and checking performance,
reviewing progress
❖Team maintenance needs: maintaining morale and
building team spirit, cohesiveness of group as working
unit, setting standards and maintaining disciplines,
systems of communication within group, training
group, appointment of sub-leaders
❖Individual needs: meeting needs of individual
members, attending to personal problems, giving
praise and status, reconciling conflicts between group
needs and needs of individual, training individual
Personal Reflection
Think about a leader who has had a positive
influence on your life. This leader could be a
teacher, coach, manager, or someone else who has
served as a role model for you. Which leadership
traits, skills, and competencies described in this
chapter are embodied by the leader you selected?
How did these qualities shape the leader’s behavior
and ability
to influence others and achieve desired goals?
Behavioral Theory (1)

❖Leadership behavior can be determined by what leaders

do in relation to accomplishing tasks and maintaining
efforts of people performing the tasks
❖Behavioral approach focuses exclusively on what leaders
do and how they act
❖Two distinct styles of leadership:
- Task behaviors: facilitate goal accomplishment, helping
followers to achieve objectives
- Relationship behaviors: help followers feel comfortable
with themselves, with each other, and with the situation in
which they find themselves
Behavioral theory - Blake’s Managerial Grid (2)
Behavioral theory - Blake’s Managerial Grid (3)

1.1 - Impoverished: Lazy, showing little efforts or

concern for either staff or work targets
1.9 - Country club: Attentive to staff needs, satisfying
relationships but paying little attention to achieving
results
9.1 - Task management: Concentration on achieving
results but ignoring people’s need and conditions of
work
5.5 - Middle of road: Achieving adequate performance
through balancing necessity to meet work targets and
maintaining unity of morale of group
9.9 - Team: Achieving high performance by leading
people, who are committed to , satisfied by and
fulfilling task objectives
Contingency theory
❖Tannenbaum and Schmidt’s continuum of
leadership styles
❖Ashridge studies
Tannenbaum and Schmidt’s continuum of
leadership styles (1)
❖Continuum leadership theory developed in 1959
and updated in 1973
❖Chosen leadership style depends on a variety of
factors, including leader’s personality, perceived
qualities of subordinates
❖Continuum represents range of action related to
degree of authority used by leader or manager
and area of freedom available to non-managers
❖Area of freedom shared between managers and
non-managers is redefined constantly by
interactions between them and environmental
forces
Tannenbaum and Schmidt’s continuum of leadership
styles (2)
Continuum of leadership styles (3)
Tannenbaum &Schmidt’s continuum suggests
❖No one style is right or wrong
❖Appropriate style depends on:
▪ Leader: personality, values, natural style, etc
▪ Subordinates: knowledge, experience,
attitudes, etc
▪ Situation: organizational culture, time
pressure, levels of authority & responsibilities,
etc
Ashridge studies: Management syles (1)
Ashridge studies: Management syles (2)
Contingency Aprroach (1)
No one best design of organization.
Form of structure, management, & success of
the org, depends on a range of situational
variables:
• THE TASKS
• THE PEOPLE
• THE ENVIRONMENT

MANAGERS HAVE TO FIND

‘THE BEST FIT’
 Fiedler’s Contingency Theory (2)

3 variables
FIEDLER’S - Leadership style
- The subordinates’
CONTINGENCY preferences,
THEORY - The nature of tasks,
=> The ‘best fit’ is effective

Leaders to predict
the situation and defining
They must understand relationships, work
themselves under- structure and
oriented style or work positions of power
relationships are favorable or
unfavorable
Contingency Theories of Leadership (3)
Handy

Tight control Leader Subordinates Task

• Preference for • Low opinion of own abilities • Requires no
autocratic style • Do not like uncertainty in initiative
work • Routine and
• High estimation
• Like to receive clear repetitive
of own capabilities
instruction • Predictable
•Low estimation of outcome
• Regard work as trivial
subordinate • Short time scale for
• Inclined, through culture or
• Dislike expectation completion
uncertainty •Trivial
Preference for • High opinion of own ability
democratic style • Like challenge • Complex and non-
• Regard work as important routine
• Confidence in
subordinates • Prepared to accept • Involving problem-
uncertainty and longer time solving or decision
•Dislike stress making
scales for results
•Accepts •Inclined, through culture or • Long time scales
reasonable risk past experience, to value • Important
Loose and uncertainty independence
control
Contingency Theories of Leadership (4)
Handy

❖Effective management: ‘best fit’ between

these 3 variables => effective performance &
team satisfaction
❖If lack of fit => leader should decide which
factor(s) changed to bring all 3 variables into
line
▪ In short-term: change leadership style
▪ In long-term:
▪ Enrich & enlarge the tasks
▪ Develop confidence & capabilites of subbordinates
Contingency Theories of Leadership (5)
Handy

Leader’s behavior is dependent upon favorability of leadership

situation. Three factors work together to determine how
favorable a situation is to a leader:
❖ Leader-member relations - Refers to the degree of trust,
respect and confidence that exists between leaders and
subordinates
❖ Task structure - Refers to the degree to which tasks are
clearly explained and structured for subordinates.
❖ Position power - Refers to the degree to which the leader
possesses inherent power in his/her position
Contingency Theories of Leadership (5)
Handy

Imagine that you have been newly appointed the manager of

a restaurant. In this scenario the following situational factors
are expected:

❖ Trust is low. This is because you are new to the job so your
team won’t trust you. Secondly, staff turnover is high so it’s
going to be difficult to build strong relationships.

❖ Task structure is high. This is because there are extremely

clear operating procedures to follow covering everything from
how to make dishes, to how to welcome customers to the
restaurant.

❖ Position power is high. You have the ability to hire and fire
and reward and punish as is required.

According to Fiedler’s Contingency Theory of Leadership, a

relationship-oriented leader is best suited to this type of role.
Class discussion: Eating Lunch Standing Up*

Questions
1. According to the behavioral approach, how would you
describe Susan’s leadership?
2. Why does her leadership behavior create such a
pronounced reaction from her employees?
3. Do you think she should change her behavior?
4. Would she be effective if she changed?

* Case 4.2: P153

Transformational and transactional Leadership
(1)

❖ Transactional leadership
- Based on legitimate authority within bureaucratic
structure of organization
- Emphasizing goals and objectives, task and outcomes,
rewards and punishment.
- Followers motivated by promises, praises and rewards
and corrected by negative feedbacks, reproof, threats,
disciplinary actions
❖ Transformational leadership
- Do more than set up simple exchanges or agreements
- Inspiring and creating excitement at work, motivating
others to do more than they originally intend or think and
to move beyond self-interest and focus on larger goals
 Transformational and Transactional Leadership
(2)

Transactional leadership Transformational leadership

Leadership is responsive Leadership is proactive

Works to change organizational
Works within organizational
culture by implementing new
culture
ideas
Employees achieve objectives Employees achieve objectives
through rewards and through higher ideals and moral
punishments set by leader values
Motivates followers by
Motivates followers by appealing
encouraging them to put group
to their own self-interest
interests first
Management-by-exception:
Intellectual stimulation: Promote
maintain status quo; stress
creative and innovative ideas to
correct actions to improve
solve problems.
performance.
Source: Odumeru & Ogbonna, 2013
Transformational and Transactional Leadership
(3)
Transformational and Transactional Leadership
(4)
Class discussion
Case 8.1: The Vision Failed

Questions
1. If you were consulting with the HTE board of
directors soon after Harold started making changes,
what would you advise them regarding Harold’s
leadership from a transformational perspective?
2. Did Harold have a clear vision for HTE? Was he able
to implement it?
3. How effective was Harold as a change agent and
social architect for HTE?
4. What would you advise Harold to do differently if he
had the chance to return as president of HTE?

* P290
Situational leadership (1)
❖Leadership in situations, implicating different
situation demands different kind of leadership
❖Effective leader must be a good analyst and
adapt their style to meet the needs of the
situation in which they operate - Hersey and
Blanchard (1988)
❖No single leadership style is best. Instead, it
depends on which type of leadership and
strategies are best-suited to the task.
❖The most effective leaders are those that are able
to adapt their style to the situation and look at
cues
Hersey and Blanchard’s life-cycle theory (2)
Leaders’ strategies and behaviors should be situational,
based primarily on maturity or immaturity of followers and
nature of task
❖ Maturity: capacity of individuals or groups to set high but
attainable goals and their willingness and ability to take
responsibility
❖ Task behavior: extent to which leaders are likely to
organize and define roles of their followers, to explain
what activities each is to do, and when, where and how
tasks are to be accomplished.
❖ Relationship behavior: leader’s personal relationship
with individuals or members of his/her group. It involves
amount of support provided by leader and extent to which
leader engages in interpersonal communication and
facilitating behavior
Hersey and Blanchard’s life-cycle theory (3)
Hersey and Blanchard’s life-cycle theory (3)
❖4 styles of leadership: Telling, Selling,
Participating, Delegating.
❖Appropriate style for leaders depends upon
followers in terms of that person’s maturity.
❖Maturity is considered to be their ability,
willingness and confidence.
Hersey and Blanchard’s life-cycle theory (4)
04 main situational leadership approaches:
❖ Telling or directing: Directive and authoritative approach,
making decisions and telling employees what to do and
supervising them carefully
❖ Selling or coaching: Making decision, but communicating
and working to persuade employees rather than simply
directing them, giving encouragement and soliciting follower
input
❖ Participating or supporting: Working with team members
to make decisions together, supporting and encouraging
them, controlling day to day decisions but remaining available
to facilitate problem solving
❖ Delegating or empowering : Assigning decision-making
responsibility to team members, lessening involvement in
planning, control of details and goal clarification
=> Style for the leader should change as maturity of followers
increases
Hersey and Blanchard’s life-cycle theory (5)
❖Low Maturity - Telling: lack of knowledge, skills but
willingness to complete task
❖Medium Maturity - Selling: willing and enthusiastic
but lack of ability
❖Medium Maturity - Participating: have skills and
capability to complete task but unwilling to take
responsibility.
❖High Maturity - Delegating: highly skilled and
willing to complete task.
Hersey and Blanchard’s life-cycle theory (6)
To use the chart:
❖ Determine maturity
level of members of
group (mature or
immature)
❖ Then, trace a line
upward until it
intersects the curved
line
❖ That intersection
determines which of
the 4 basic leadership
styles is most
effective for that
situation
Class discussion:

Case 5.2.: Why Aren’t They Listening*

Questions:
1. According to the SLII® model (Figure 5.1), what
style of leadership is Jim using to run the
seminars?
2. At what level are the managers?
3. From a leadership perspective, what is Jim doing
wrong?
4. What specific changes could Jim implement to
improve the seminars?

* P183
In summary

Perspective Leadership theories

Leader’s point of view - Trait approach

- Skills approach
- Style approach
Follower and context - Situational
Leadership
- Path–goal theory
Process Leader–member
exchange (LMX) theory
Leadership and Management

“Leadership is doing the right things;

Management is doing things right”
Warren Bennis and Peter Drucker
❖ Leadership: Doing the right things - Deciding the
best course of actions to take (What are the
things we should do? What direction should we
take? Where do we want to be in the end?)
❖ Management: Doing things right - Following the
act of leadership, looking at the objectives
established by leadership and working out the
best way to get there
Functions of Management and Leadership
Differences between Leadership and Management
Leadership Management
Creating a sense of direction: Planning and budgeting:
borne out of dissatisfaction with setting targets, establishing
the status quo. Out of this procedures for target and
challenge, a vision for sth allocating resources to meet
different is created plans
Communicating the vision: Organizing and staffing:
meet realized or unconscious Designing organizational
needs of other people and leader structure, hiring right people and
must work to give it credibility establishing incentives

Energising, inspiring and Controlling and problem

motivating: stimulate others to solving: monitoring results
translate vision to achievement against plan, identifying
problems, producing and
* All of these activities involve implementing solutions.
dealing with people rather than
things
(John Kotter, 1988)
Functional Differences between Leaders and Managers
 Topic 1.4.
Impacts of leadership and management
❖Positive impacts for improving business
performance, effective management of resources,
innovation.
❖Negative impacts, e.g. loss of competitive
advantage, stagnation and decline.