UNIT 6 REVISION

·         leaders must act as role models so other employees will follow suit

·         set long term strategies to give the business a vision of where they need to be within the next week, month or year

·         inspire, enthuse and motivate others in order to achieve the same goal at a faster pace, helping the business to become competitive overall.

·         Use transformational benefits and rewards such as a promotion. This can motivate others to work much quicker while having a high quality output.

·         Leaders must also be a risk seeker and brave, willing to put the business in danger in order to improve it greatly.

·         Leaders must also admit they are wrong. Having a leadership role does not mean that only your opinion matters.

A flatter structure results in greater delegation, teamwork is improved and the quality of products can be improved.

Rapid change

Change is becoming a constant feature of business life.

Soft skills of leadership and management becomes increasingly important

Traditional view-

·         Command and control

·         decision making    

Modern view-

·         inspiring employees

·         creating a vision

·         shaping core values and culture

·         building effective teams

·         Strategic leaders are individuals who control the corporate strategy of a business.

·         This form of leadership is found mainly in small firms and large corporates.

This leadership style adapts to different situations. It also believes that more than one style of leadership should be used and that the leaders needs to keep changing in relation to the situation they are in. this type of leadership was created during the mid 70’s which requires you to understand the individual or groups’ performance. This theory contains 4 leadership styles and 4 levels of maturity.

Leadership style

Levels of maturity

L1= directing- telling someone what to do

M1- lack specified skills yet are motivated to complete the task

L2= supporting- individuals is able to support themselves but can contact the leader if they require any help

M2- they are now able to complete the tasks but now have no motivation

L3= coaching- providing support for the tasks swell as emotional support for the individual

M3- experienced and skilled however they lack self confidence in themselves and can be lazy when given responsibility

L4= delegating- the responsibility has been passed to another individual and the leader will now monitor them

M4= experienced and able to do the task will self motivation and self confidence

·         This form of leadership style focuses on supervision, organization and employee performance.

·         Leader is focused on operational side of the business

·         The leader uses rewards and punishment as a form of motivating employees

·         Focused on getting the current job at hand done, not caring about long term vision

·         This form of leadership can be used when problems are simple to resolve and employees follow rules and procedures.

·         Transformational leaders inspire, encourage and motivate employees in order to achieve long term visions.

·         Transformational leaders are passionate, inspiring and have a strong long term vison which they inform all their employees about, so everyone knows what the common goal is.

·         Encourage change and focus on long term strategies

·         These leaders also create a strong bon of corporate culture with their workers as well as employee ownership and independence in the workplace

·         This leadership style is only used when change is needed.

Continuum that represents actions related to:

·         Degree of authority used by the manager

·         Area of freedom available to non managers.

Linked to boss centered leadership and subordinated centered leadership.

leaders

Focus on long term strategy and vision

Inspire people

Build relationships

Take risks

Have followers

Managers

Focus on short term plans

Enact the plan

Use authority

Manage risks

Have subordinates

·         Organize tasks and people

·         Get tasks done

·         Review processes in order to make improvements

·         Review progress

·         Never think of long term strategies

·         Carry out their leaders instructions

This is when a business sets clear objectives for everyone in the organization to achieve. These objectives filter down through each layer and are given to each employee. The progression of these objectives is monitored on a regular basis.

This theory was created by peter ducker in 1954 when writing his book “the practice of management” which become a sensation in the industry by the 1960’s. for MBO to be successful, planning and communication must be at high standards.

advantages

Motivates employees to make plans with more detail, and makes operations run smoother while having responsibilities set clearly.

Everyone knows what is expected, resulting in little confusion

Rewards can be linked to objectives

If objectives are not met, sanctions can be handed out

Achieving objectives increases motivation

disadvantages

If objectives are not set correctly, they can be de-motivating

A lot of paperwork and administration is required, which can be time wasting

Too much focus could be used on short term objectives

Managers may not have the skill required to monitor progress

When objectives are linked, If one objective is not met, then all other areas cannot be met.

Planning

Creating a plan to implement the organizational goals. The plan could last a year, month, week or day,

An example of planning was when ikea opened its first store in india. Ikea had to make sure the planning for the launch was perfect, in order to give the right impression for their store to gain as many customers as possible.

Coordinating

Working together, bring different aspect of the business together which should happen seamlessly. Using the Ikea example, Ikea would need to ensure each recruit meets their line manager an teams. Different departments work effectively together

Controlling

·         Supervising event and activities and being in charge

·         Stepping in if things go wrong

·         Ensuring all Ikea assessment days run on time according to budget and plan

Monitoring

Review plans to ensure deadlines and objectives are met on time

Make changes and learn from experiences

For example in Ikea, they must monitor the amount of new employees work via performance review meetings

Delegating

Passing on a responsibility or task to make a decision to someone less senior however the team member must have the skill required to carry out the task

advantages

·         Reduces management stress and workload

·         Allows senior management to focus on key tasks

·         Subordinates are empowered and motivated

Better decisions or use of resources

disadvantages

·         Cannot/should not delegate responsibility

·         Depends on quality and experience of subordinates

·         Hard to carry out in smaller firms

May increase workload and stress subordinates

Inspiring

 Motivating someone else and making them feel confident in themselves.

Being the driving force within the organization

Acting will freedom to make decisions and take actions