So some more on
So what do we know so far?!!!!
At the end of these lessons, you should be able
• Identify the main types of leadership style
• Identify the main characteristics of different theories of
leadership - trait, transactional, etc.
• Demonstrate an ability to apply different leadership styles
and characteristics to different business situations
A Leadership Story:
• A group of workers and their leaders are set a task of clearing
a road through a dense jungle on a remote island to get to the
coast where an estuary provides a perfect site for a port.
• The leaders organise the labour into efficient units and
monitor the distribution and use of capital assets – progress is
excellent. The leaders continue to monitor and evaluate
progress, making adjustments along the way to ensure the
progress is maintained and efficiency increased wherever
• Then, one day amidst all the hustle and bustle and activity,
one person climbs up a nearby tree. The person surveys the
scene from the top of the tree
• And shouts down to the
assembled group below…
• “Wrong Way!”
• (Story adapted from Stephen Covey (2004) “The Seven Habits
of Highly Effective People” Simon & Schuster).
• “Management is doing things right,
leadership is doing the right things”
(Warren Bennis and Peter Drucker)
• This type of style involves the leader including employees in
the decision making process (determining what to do and
how to do it).
The leader maintains the final decision making authority.
However, sometimes managers have already made decisions and use a
consultation exercise as a way of justifying them. If they can’t bring employees
to their way of thinking, the leader’s authority will be undermined.
This can be highly motivating for employees if they see their ideas put into
• Leaders will discuss
processes and change
strategies with employees
before making a final
• Empowering for employees
and involves lower level
workers in decision making,
where often they have
more knowledge than
leaders in certain areas.
• Leaders will encourage
(persuade) employees to
side with the leader on
decisions, often ones that
are already made.
• Somewhat empowering for
employees, and helps build
good relationships within
• Empowering for
employees as it involves
lower level workers in
decision making, where
often they have more
knowledge than leaders
in certain areas.
• Raises moral
• Gives employees
ownership to decisions,
and a (make it work
• Can waste time by
from their normal
resulting in lower
• Often employees input
will only be valuable for
(relevant to their skillset)
• Can cause disputes
• Less authoritarian than
• Can help to build leader
• Can still involve asking
opinions of employees,
and if that is the
decision made, they will
think their input was
• More time consuming
• May open up room for
• Employees over time
may grow wise to this
Autocratic leadership style
A leader with an autocratic or authoritarian
style will make all the decisions in a business.
This type of leader will not delegate authority
to anyone. There will be tight control over the
activities and whereabouts of employees. The
leader tells employees what he/she wants done
and how it’s to be done
Advantage: The major advantage is that
employees are always very clear exactly what is
wanted and tasks are very precisely defined.
Disadvantage: The major disadvantage is
that subordinates are not allowed to be
creative or have any role in decision making.
This means that their motivation and
enthusiasm are likely to be low.
This style is very similar to authoritarian (Autocratic) in that
there is no room for individual innovation or opinion.
Management is carried out by rules and regulations that are
The main advantage is that of certainty – employees know how
decisions will be made
The main disadvantage is that it is highly inflexible and as with
authoritarian, it allows for no new ideas or suggestions
The ‘Laissez-Faire’ approach
This is the opposite of authoritarian management. Laissezfaire is French for ‘let it be’
Leaders with this type of style are usually very calm and assured. They
will set very general guidelines and targets and give subordinates the
freedom to achieve targets in their own way. Managers who adopt this
style must have full trust and confidence in the people below in the
It allows for innovation and new ideas and is highly motivating for
Subordinates are not always clear what they are supposed to be
doing, or are allowed to do. Conflicts can easily arise
Leadership is about what?
• Getting people to do things!!
“You can move people or motivate people”
In this theory, which has been proven counter-effective in most modern practice, management
assumes employees are inherently lazy and will avoid work if they can and that they inherently
As a result of this, management believes that workers need to be closely supervised and
comprehensive systems of controls developed. A hierarchical structure is needed with narrow span
of control at each and every level. According to this theory, employees will show little ambition
without an enticing incentive program and will avoid responsibility whenever they can.
Theory X managers rely heavily on threat and coercion to gain their employees' compliance. Beliefs
of this theory lead to mistrust, highly restrictive supervision, and a bad atmosphere. The Theory X
manager tends to believe that everything must end in blaming someone. He or she thinks all
prospective employees are only out for themselves.
Usually these managers feel the sole purpose of the employee's interest in the job is money. They
will blame the person first in most situations, without questioning whether it may be the system,
policy, or lack of training that deserves the blame.
A Theory X manager believes that his or her employees do not really want to work, that they would
rather avoid responsibility and that it is the manager's job to structure the work and energize the
employee. One major flaw of this management style is it is much more likely to cause diseconomies
of scale in large businesses.
Theory x ('authoritarian
• The average person dislikes work and will
avoid it if he/she can.
• Therefore most people must be forced with
the threat of punishment to work towards
• The average person prefers to be directed; to
avoid responsibility; is relatively un-ambitious,
and wants security above all else.
McGregor’s Theory X
• Theory X Managers Believe
Workers cannot be trusted.
They work only for the money.
They do as little as possible.
They cannot be relied on.
They have to be told what to do.
They must be supervised closely
They avoid responsibility.
In this theory, management assumes employees may be ambitious and self-motivated and exercise
self-control. It is believed that employees enjoy their mental and physical work duties. work is as
natural as play.
They possess the ability for creative problem solving, but their talents are underused in most
organizations. Given the proper conditions, theory Y managers believe that employees will learn to
seek out and accept responsibility and to exercise self-control and self-direction in accomplishing
objectives to which they are committed.
A Theory Y manager believes that, given the right conditions, most people will want to do well at
work. They believe that the satisfaction of doing a good job is a strong motivation. Many people
interpret Theory Y as a positive set of beliefs about workers.
McGregor thinks that Theory Y managers are more likely than Theory X managers to develop the
climate of trust with employees that is required for human resource development. It's human
resource development that is a crucial aspect of any organization. This would include managers
communicating openly with subordinates, minimizing the difference between superior-subordinate
relationships, creating a comfortable environment in which subordinates can develop and use their
abilities. This climate would include the sharing of decision making so that subordinates have say in
decisions that influence them.
Theory y ('participative
• Effort in work is as natural as work and play.
• People will apply self-control and self-direction in the
pursuit of organisational objectives, without external
control or the threat of punishment.
• Commitment to objectives is a function of rewards
associated with their achievement.
• People usually accept and often seek responsibility.
• The capacity to use a high degree of imagination and
creativity in solving organisational problems is wide.
McGregor’s Theory Y
Theory Y Managers Believe:
• Workers enjoy their work
• They work hard and expect to be reasonably paid.
• They are honest and trustworthy
• They are able to organise themselves
• They can take initiatives.
• They enjoy responsibility.
• They are willing to make decisions.
• They can work without supervision.
• Money is not their only motivation.
• OK tell me which leadership style applies to
the following examples.
Small IT consultant
Clothes shop manager
School teacher with
• Manager of teachers
• Hair dresser owner
• Factory (make TV’s)
• Basketball coach
• Lead singer in a band
• Restaurant owner
• Masseuses manager
They change styles
• Leadership is very
dependent on the
• In times of crisis
Autocratic is normally
best, a good leader will
change their style to get
the best results in all
Its about best fit
• Leadership is like
• Some people have big
• Some people have
• The leader should try
to fit their style to the
workforce and task
So what do we know?
• Theory X
• Theory Y
• You are now clearly masters of leadership
– So we will do some work on it now, and not return
back to this till revision time for the exam
– I will place key revision areas of this on the class
– And when I figure out how to upload my Power
Point Presentations to it, this too
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