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Management and Leadership - Coggle Diagram
Management and Leadership
Leader
May perform similar functions to managers, but they also inspire and motivate the workforce. They consider long-term strategy, the challenges facing the business and how to overcome them.
Characteristics
Committed
Ambitious
Innovative
Charismatic
Creative
Roles
Empowering workers
Anticipating problems
Motivating staff
Deciding on structure
Creating a vision
Manager
: Control and direct the workforce to follow the principles or values that have been established by the leaders.
Functions
Controlling
Leading
Organising
Coordinating
Planning
MBO
This involves breaking down and subdividing the aims and goals of an organisation into targets and objectives for divisions, departments, managers and finally workers.
The MBO process
Set objectives for individual departments and workers
Monitor progress - managers and workers check to see if the objectives are being reached
Set objectives for the management of the different functions of the business
Evaluate performance and give reward if the objectives were reached
Review objectives for the whole business (corporate objectives)
Advantages
The work of departments and managers are co-ordinated. Everyone is working together towards a common goal.
It can improve communication systems within the organisation. The process of setting and agreeing objectives will itself involve communication both up and down the hierarchy.
Improved management control of the organisation. Managers know who is doing what and what they are supposed to be achieving. Clarity of goals.
It allows managers to be aware of their responsibilities. Managers are aware of what they should be achieving and how their role fits in with organisational objectives.
Disadvantages
The ever-changing business environment or context in which the goals are set may change over time, making the objectives unrealistic.
Objectives can be seen as a form of management control.
Management time is spent on the process of setting objectives rather than managing the organisation.
Demotivation and breakdown of working relationships. If all levels of hierarchy are not involved in setting objectives, then they may not be committed to them.
McGregor’s theory X and Y
Theory Y Managers Believe
Workers cannot be motivated by money alone
Workers will be more efficient if they are left to their own devices
The typical worker does not have an in-built dislike of work
Workers want to contribute to improving efficiency
Working is as natural as rest
Theory X Managers Believe
Workers do not want to be involved in the decision-making process
Workers are selfish
Workers are lazy and dislike work
Workers need to be controlled and directed by management
Workers are only motivated by money
Types of Leadership
Autocratic
Gives orders which are to be obeyed without question
No consideration of Maslow’s higher needs or Herzberg’s motivation factors (Unmotivated Workforce)
Effective when rapid restructuring is required
Democratic
Consults with subordinates in decision making
Will need to communicate effectively with employees
Can result in a motivated workforce
Paternalistic
They make all the decisions and there is no employee involvement. They may attempt to persuade employees that the decisions are in the best interest of all concerned
Lack of employee involvement in decision making
Employee welfare is considered
Bureaucratic
Focuses on developing the specialisation of jobs and departments
Discouragement of innovation
Workers in a secured role are more likely to cooperate with other workers
Laissez-faire
The leader has minimal input and subordinates are left to get on with their jobs
Minimum guidance is offered
Productivity can be low due to lack of motivation
Fielders Contingency Theory
There is no one best style of leadership. Instead, a leader's effectiveness is based on the situation. This is the result of two factors:
Situational control – this is the amount of control and influence that the situation provides leaders over their group’s behaviour, the task and the outcome
Leadership style – it is the personality of the leaders that determine their leadership style