Management and Leadership Revision Cards

All you need to know for the AS business exam. New spec by AQA taught from September 2015 onwards.

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Leadership Definition

A relationship through which one person influence the behaviour or actions of other people.

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Different Leadership Prospectives

Traditional View

  • Command and Control
  • Decision making
  • Suitable for Theory X or authoritarian leadership

Modern View

  • Inspiring employees
  • Creating a vision
  • Shaping core values and culture
  • Building effective teams
  • Suitable for Theory Y leadership
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Why Leadership is Increasingly Important in Busine

Changing organisational structures:

  • Flatter hierarchy and greater delegation by giving subordinates higher jobs to do.
  • Teamwork and focusing on quality assurance so everyone is in charge of quality.
  • Coaching by making experienced staff train youngsters, support and empowerment.

Rapid change:

  • Change is becoming a constant feature of business life.
  • Soft skills of leadership and management such as compassionate leadership are increasingly important.
  • It is harder to be authoritarian in the modern era.
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The Role of Strategic Leadership

  • Strategic leaders are people who influence or control the corportate strategy of a business.
  • Leaders control behaviour and are often personally identified with the strategy.
  • This occurs in both small firms and large corporates.
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How Strategic Leadership is Demonstrated


  • Leaders take direct control
  • Used in a crisis
  • Also suits Theory X and authoritarian leaders


  • Leaders set the vision and core beliefs


  • The leader weighs up the options and decides


  • The leader is the embodiment of the strategy but not involved on a day to day basis.
  • This style sets a good example 
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The Difference Between Leadership and Management


  • Inspire people
  • Build relationships
  • Take risks
  • Have followers


  • Enact the plan
  • Use their authority
  • Manage risks
  • Have subordinates
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Traditional Levels of Management in Business

Senior Management

  • Set corporate objectives and strategic direction
  • The board is responsible to shareholders
  • For example, board of directors
  • Led by the CEO

Middle Management

  • Accountable to senior management
  • Run business functions and departments

Junior Management

  • Supervisory role and accountable to middle management
  • Monitor and control day to day tasks and manage a team of workers
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What a Leadership Style is

  • The way that the functions of leadership are carried out.
  • The way that a leader behaves.
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  • The focus of power is with the manager
  • Communication within the business is top down and one way
  • Formal systems of command and control
  • Use of rewards and penalties
  • Little delegation to subordinates
  • McGregor Theory X approach
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  • Leader decides what is best for employees
  • Links with Mayo in the sense that it addresses employee needs
  • Akin to a parent-child relationship
  • Little delegation
  • Softer form of authoritarian leadership
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  • Focus of power is more with the group as a whole
  • Leadership functions are shared within the group
  • Employees have greater involvement within decision making
  • Emphasis on delegation and consultation
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  • Leader has little input into day to day decision making
  • Conscious decision to delegate power
  • Managers and employees have freedom to do what they think is best
  • Effective when staff are ready and willing to take on responsibility
  • Not the same as abdication
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Grouped managers into 2 types:

Theory X - Authoritarian

The average worker is lazy and dislikes work. Workers need to be controlled and directed. There is centralised organisation and exercise of authority.

Theory Y - Laissez Faire

Most people enjoy work and workers will take responsibility and organise themselves. Decision making can be delegated.

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Why Modern Businesses Are Moving Away From Authori

  • Change in society's values
  • Better educated workforce
  • Focus on the need for soft human resource skills
  • Changing workplace organisation
  • Greater workplace legislation
  • Pressure for greater employee involvement
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Tannenbaum and Schmidt

  • A "continuum" of leadership behaviour
  • The continuum represents a range of action related to:
    • The degree of authority used by the manager
    • The area of freedom available to non managers
  • Links with both Theory X and Theory Y leadership
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Tannenbaum and Schmidt Continuum


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Blake Mouton Managerial Grid

  • Identifies five different leadership styles based on a grid
  • Axis measure:
    • Y axis - Concern for people
    • X axis - Concern for completing tasks
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The Grid


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The Leadership Styles


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Factors Affecting Leadership Styles

  • Personal value systems
  • Manager's experience
  • Confidence in subordinates
  • Feelings of security
  • Nature of business problems
  • Type of organisations (size, structure, etc)
  • Effectiveness of teams and groups
  • Skills and experience of subordinates
  • Pressure (time, costs, etc)
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Which Leadership Style is Best?

  • A business needs the right leader for the right situation.
  • Autocratic is suitable when the business is in trouble, for example, if it needs rapid turnaround.
  • Autocratic would be inappropriate if the perforance is highly dependent on effective team working and decentralised operation.
  • Stage of business: start up vs established and complex.
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