2.3 Leadership and management
Scientific Thinking and Management
-
Scientific thinking and management rely on objective facts and empirical evidence.
-
Decisions are made based on quantifiable data and proof, not subjective opinions or emotions.
-
This approach leads to rational and logical decisions that are easier to justify and communicate. It also reduces the risks involved in decision-making.
Intuitive thinking and management
-
Intuitive thinking and management relies on personal beliefs, perceptions, and instincts.
-
It considers non-quantifiable factors like employee well-being and community impact.
-
Intuitive decisions are quicker and cheaper but riskier, often used by experienced entrepreneurs.
Management
-
Management involves planning, organizing, and coordinating resources to achieve organizational objectives.
-
It focuses on using and controlling human and non-human resources effectively.
-
A manager has decision-making authority and is responsible for problem-solving to achieve specific goals within a defined timeframe.
Functions of Management
-
Planning
-
Coordinating
-
Controlling
-
Commanding
-
Organising
Leadership
-
Leadership involves influencing, invigorating, and inspiring others to achieve organizational goals.
-
A leader influences and inspires others to accomplish tasks, fostering motivation, respect, trust, and loyalty.
-
Leaders focus on broader goals or visions without specific timeframes.
Differences between management and leadership
-
Leadership is focused on long-term vision, strategic decision-making, and inspiring others. Leaders challenge the status quo, create a culture of hope, and focus on people rather than tasks. They are innovative thinkers who can navigate times of crisis and change.
-
Management is focused on short-term tasks, tactical decisions, and following established rules and procedures. Managers deal with day-to-day operations and ensure compliance with company policies. They are more concerned with efficiency and maintaining order.
Autocratic Leadership style
-
Leader makes all decisions and delegates little.
-
Clear chain of command with top-down communication.
Suitable for:
-
Quick decisions in crises or hostile takeovers.
-
Inexperienced or unskilled workers needing direction.
Drawbacks:
-
Ignores employee ideas and can cause resentment.
-
Creates dependence on leader, hindering initiative.
-
Can demotivate and lead to high turnover.
Paternalistic Leadership Style
-
Paternalistic leaders treat employees like family, guiding them and acting in their best interests. They build trust and have exceptional organizational skills.
Types of Paternalistic Leadership:
-
Negative: Leader perceives workers as incapable, leading by supervision and control.
-
Positive: Leader perceives workers as capable, nurturing, supporting, and developing them.
Advantages:
-
Works well in cultures like Japan and India where respect and gratitude for leaders are valued.
Disadvantages:
-
May not work well in cultures where workers want autonomy.
-
Inappropriate in flatter, informal structures requiring creative thinking.
Laissez Faire Leadership Style
-
Laissez-faire leaders have minimal direct input, allowing employees to make their own decisions and complete tasks independently. They set objectives but let employees decide on the best approach.
Advantages:
-
High motivation and trust among employees.
-
Sense of control and contribution to organizational success.
-
Suitable for creative environments like software companies and advertising agencies.
Disadvantages:
-
Can be time-consuming due to lack of supervision.
-
Delayed execution of business strategy.
-
Relies on teamwork and employee goodwill.
-
May encourage slacking due to lack of direct monitoring.
-
Requires trust in employees to get their jobs done.
Situational Leadership Style
-
Situational leadership is a flexible approach that adapts the leadership style to the specific situation. It recognizes that different situations require different styles, as Mahatma Gandhi noted.
Factors influencing situational leadership:
-
Culture: Organizational culture and group norms.
-
Leader: Leader's trust in employees, experience, confidence, and preferred style.
-
Organizational structure: Hierarchical or flat structure, span of control.
-
Task: Difficulty, urgency, importance, complexity of tasks.
-
Subordinates: Employee skills, motivation, unity, and team size.