Leadership and Management


Managers: responsible for setting objectives and planning, allocating resources, motivating employees so that organizational aims are met.

Functions of the management:

Mintzberg’s management roles

Interpersonal: figurehead, liaison, leader

Informational: receiver, disseminer, spokesperson

Decisional: resource allocator, negotiator, disturbance handler, entrepreneur

Differences: Leadership and management

Leadership: art of motivating a group of people towards achieving a common objectives



Motivates and inspires others

Directing and monitoring 

Creates, developed a culture of change

Fits into the norms of the organization

Respected by followers due to admiration 

Respected due to authority, position

Stems from personal traits

Official position in a company

Believes in doing the right thing

Believes in doing the thing right

Natural abilities and instincts

Qualified to perform in the role


Trait theory on leadership:


Leadership styles






Autocratic:  leadership style that keeps all decision-making at the center of the organization

  • Leader takes all decisions
  • Gives little information to staff about business
  • One way communication
  • Supervises workers closely
  • Demotivates staff 
  • Decisions do not benefit from employee input
  • Police/defense  forces
  • In times of crisis

Paternalistic: fatherly style used by dominant males where their power is used to control and protect subordinate employees who are expected to be loyal and obedient

  • ‘father-like’ figure takes decisions but in interests of Employees

  • feedback and consultation encouraged, but not participative decision-making
  • Low staff motivation if loyal connection to leader not established

  •  Increasing dependency of employees on the leader, more supervision required

  • Employee dissatisfaction if bad decisions are made
  • Family-owned businesses

  • In a business where creative thinking is not required of employees


promotes the active participation of workers in taking decisions

  • Feedback given/allowed
  • 2 way communication
  • Information about business is conveyed to employees
  • Participation encouraged
  • Discussions are time consuming
  • Quick decision making required occasionally
  • Level of involvement: job losses, new products developments are a secret  
  • businesses that expect workers to contribute fully to the production and decision-making processes, satisfying their higher order needs
  • An experienced & flexible workforce will benefit from this style
  • In situations that demand a new way of thinking/solution

Laissez-faire leadership: leaves much of the business decision-making to the workforce (reverse of the autocratic style)

  • Managers delegate virtually all authority/decision-making powers
  • broad criteria/limits established for the staff to work within
  • Workers may feel loss of security due to the lack of structure and direction in their work


  • Lack of feedback – as managers will not be closely monitoring progress – may be demotivating
  • managers are too busy/lazy to intervene
  • Research institutions 

Situational leadership: 

effective leadership varies with the task in hand and situational leaders adapt their leadership style to each situation

  • Style depends on the nature of the task and the work group’s skills and willingness to accept responsibility
  • Varying the style of leadership may be difficult for some workers to accept and they may become uncertain of how they will be led in different situations
  • By allowing flexibility of leadership style, different leadership approaches can be used in different situations and with different groups of people

Factors that affect leadership style:


Ethical leadership: leading by knowing and doing what is “right”; paternalistic, democratic rather than autocratic

Qualities of ethical leader: 

Cultural considerations and leadership


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