Oc1 - 1-69
Oc1 - 1-69
Outcome 1
Ms. Ama De Silva
2
Definitions of management
3
Introduction to Leadership and management
unit
• Learning Outcomes
• By the end of this unit the student will be able to:
LO1 Examine leadership and management theories and principles, and their impact
on the effectiveness of an organisation
LO2 Review the influence of different leadership and management styles on the
culture of organisations
LO3 Develop a motivational strategy to optimise organisational performance
LO4 Apply leadership and management approaches to managing performance to
ensure continuous improvement.
4
What is ?
• An Organisation
An organization is a two or more people
who work together in a structured way to Business
achieve a specific goal or set of goals.
(Stoner and Freeman,2009)
• What is a Business ?
A business is an any economic activity
carried out to satisfy human needs and
wants. Management
Organisation
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What is Management ?
• Management is the process of
planning, organizing, • Hence, Management can be
commanding, coordinating and broadly defined as a process of
controlling. planning, organizing, leading and
• (Fayol,1930) controlling the limited resources
efficiently and effectively to achieve
predetermined goals and objectives
in an ever changing business
environment.
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7
What managers should do?
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Effectiveness, Efficiency and productivity
• Efficiency:
• The degree to which limited
resources are optimally used.
• Effectiveness:
• The degree to which the intended
results are achieved.
• Productivity
• It is the relationship between the
output generated by a production or
service system and the input provided
to create this output.
• Productivity = Efficiency + Effectiveness
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Types of Managers
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Manager’s Role
• Managerial roles
refers to specific
actions or
behaviors expected
of and exhibited by
a manager.
• (Robbins and Coulter, 2011)
11
To be an effective and efficient manager, we need
Technical Skills
Human Skills
8/20/2023 12
Druker’s Managers role-MBO
• The work of a manager can be divided into:
Setting objectives
Organizing
Measuring
Developing people
Managerial Skills
• Managerial skills is generally a pre-
requisite for management success.
(Certo and Certo 2009)
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Key skills
• Team Dynamics: Effective managers understand the dynamics of their teams and how to create a
collaborative and productive environment. For instance, a manager might organize team-building activities
to improve communication and trust among team members. They might also recognize and utilize individual
strengths within the team to maximize overall performance.
• Planning: Planning involves setting objectives, outlining strategies, and allocating resources to achieve
organizational goals. For example, a manager in a retail company might create a detailed plan for a holiday
sales promotion, including setting sales targets, determining marketing strategies, and allocating staffing
resources.
• Decision Making: Managers make critical decisions that impact the organization's direction. An example
could be a project manager deciding between two software development methodologies. They would
analyze the pros and cons of each and choose the one that best suits the project's needs.
• Strategic Mindset: Strategic thinking involves considering the long-term vision and aligning decisions with
that vision. An executive manager in a technology company might focus on identifying emerging market
trends and adapting the company's product portfolio to stay competitive.
• Problem Solving: Managers need to identify and resolve issues that arise within their teams or the
organization. A manager faced with a decline in employee morale might investigate the root causes, such as
workload issues or communication breakdowns, and implement strategies to address them.
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Key Skills
• Communicating (Verbal and Non-Verbal): Effective communication is crucial for conveying goals,
expectations, and feedback. A manager might hold regular team meetings to discuss project
updates and encourage open dialogue. Additionally, they should be attentive to non-verbal cues
during conversations, ensuring their messages are understood.
• Motivating: Managers inspire and energize their teams to achieve their best. For instance, a
manager might recognize outstanding performance through praise and rewards, creating a
culture of motivation and engagement.
• Delegating: Delegation involves assigning tasks to team members based on their strengths and
expertise. A manager might delegate a complex project to an employee with relevant skills,
allowing them to grow and contribute effectively.
• Managing Discipline: When team members deviate from expectations, managers need to address
the issue professionally. If an employee consistently arrives late to work, a manager might have a
private conversation to understand the reason and implement corrective actions.
• Dealing with Conflict: Conflict is inevitable in any workplace. A manager might mediate conflicts
between team members, facilitating discussions to find common ground and maintain a
harmonious work environment.
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Management activities
• Planning: This activity involves setting goals, defining strategies, and outlining the steps needed to
achieve those goals. It's about determining what needs to be done, how it will be done, and when it will
be done. For example:
• Strategic Planning: A senior manager in an e-commerce company might create a strategic plan
to expand into new international markets over the next three years, outlining the markets to
target, marketing strategies, and resource allocation.
• Project Planning: A project manager working on a software development project might create a
detailed project plan that includes tasks, milestones, timelines, and resource allocation.
• Organizing: Organizing involves structuring tasks, resources, and people to achieve the goals set during
the planning phase. This activity focuses on coordinating and arranging the necessary elements for
efficient execution. For example:
• Team Structure: A department manager might organize a cross-functional team for a product
launch, assigning specific roles to each team member based on their skills and expertise.
• Resource Allocation: A production manager might organize production processes by allocating
machinery, materials, and manpower efficiently to meet production targets.
• Directing (Motivating): Directing or motivating is about leading and guiding the team members to
accomplish the established goals. It includes communication, motivation, and providing clear guidance.
For example:
• Team Motivation: A team lead might use a combination of financial incentives, recognition, and
career growth opportunities to motivate team members to meet sales targets.
• Leadership Communication: An executive manager might communicate the company's vision
and values to inspire employees and foster a sense of purpose.
• Controlling: Controlling involves monitoring progress, comparing it to the established plans, and taking
corrective actions if necessary. It ensures that activities are on track and aligned with organizational
goals. For example:
• Performance Evaluation: A manager might review sales reports regularly to compare actual
sales figures against projected targets. If there's a shortfall, corrective measures can be taken,
such as adjusting marketing strategies.
• Quality Control: A production manager might implement quality control processes to ensure
that manufactured products meet specified standards. If defects are identified, adjustments can
be made to improve quality. 17
Approaches to management
Task Orientation: Relationship Orientation:
Task-oriented managers prioritize achieving goals Relationship-oriented managers prioritize building
and completing tasks efficiently. They focus on the strong interpersonal relationships and fostering a
technical aspects of work and ensuring that positive work environment. They focus on the well-being
objectives are met. Here are some key of team members and collaboration. Here are key
characteristics and examples of task-oriented characteristics and examples of relationship-oriented
management:
management: • Open Communication: Relationship-oriented managers
• Clear Objectives: Task-oriented managers emphasize emphasize communication that fosters trust,
setting clear and specific goals, so that everyone transparency, and active listening.
understands what needs to be achieved. • Employee Development: They invest time in
• Efficiency: They often prioritize processes that lead to understanding employees' career goals and
streamlined operations and higher productivity. providing opportunities for growth and skill
• Performance Metrics: Measurement and evaluation development.
of performance are crucial. Managers may use key • Conflict Resolution: These managers excel at resolving
performance indicators (KPIs) to track progress. conflicts by encouraging open dialogue and finding
• Delegation: Task-oriented managers delegate solutions that consider the needs and concerns of all
parties.
responsibilities based on individuals' skills and
expertise, aiming to maximize efficiency. • Team Building: Building cohesive teams and promoting a
sense of belonging is a priority. They might use team-
• Project Management: They excel at project planning, building activities and social events to strengthen
scheduling, and resource allocation to ensure tasks relationships.
are completed on time and within budget. • Empathy and Support: Relationship-oriented managers
show genuine concern for the well-being of their team
members, providing emotional support when needed. • 18
Theories of management
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Development of a Formal Body of Management
Thought
1800 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Systems Approach
Contingency Approach
Classical Approach to Management
Scientific Management Theory, Administrative Management Theory
• Management is considered as a science of Administrative Management theory focuses
working towards higher Productivity through on the improvement of productivity of entire
higher work efficiency. It believed that there organization.
is always a best standardized method of work
for which the workers can be trained
scientifically.
• This theory focuses on improvement of
operational efficiencies through the
systematic and scientific study of work
methods, tools, and performance standards. • Key Contributors to the Administrative
Management
• Key Contributors to the Scientific Management
F. W. Taylor Frank Lillian Henry Gantt Harrington Henri Fayol Lyndall Urwick Max Weber Chester Barnard
(1856-1915) Gilbreth Gilbreth (1861-1919) Emerson (1841-1925) (1891-1983) (1864-1920) (1886-1961)
(1868-1924) (1878-1972) (1853-1931)
Henry Fayol – Father of Management
F.W .Taylor - US Engineer/ Father of Scientific Management 21
•
Scientific Management Theory
"Scientific Management," often referred to as Taylorism, is a management theory developed by Frederick Winslow Taylor in the late
19th and early 20th centuries. Taylor's approach aimed to improve efficiency and productivity in organizations by applying scientific
principles to the management of work and workers. Here are the key principles and concepts of Taylor's Scientific Management:
• 1. Time and Motion Studies:
• Taylor conducted studies to analyze the time and motion required to perform specific tasks. By breaking down work processes into individual motions, he aimed to
identify the most efficient methods and eliminate unnecessary or wasteful movements. This approach, known as time and motion studies, aimed to increase productivity
by optimizing work processes.
• 2. Standardization:
• Taylor believed in establishing standardized methods for performing tasks. This meant identifying the best way to complete a task and ensuring that all workers followed
the same process. Standardization helped reduce variability in work output and improved overall efficiency.
• 3. Piece-Rate Incentive Systems:
• Taylor proposed a compensation system based on the concept of piece-rate pay. Workers would be paid based on the quantity of work they produced, incentivizing
them to work more efficiently and produce more output. This system aimed to align worker interests with organizational goals.
• 4. Functional Foremanship:
• Taylor introduced the idea of separating planning and execution roles in management. He proposed having specialized managers responsible for planning and organizing
work (planning foremen) and others responsible for overseeing actual work execution (production foremen). This division of labor was meant to optimize efficiency in
both planning and execution.
• 5. Selecting and Training Workers:
• Taylor believed in carefully selecting and training workers to perform tasks using the standardized methods. He believed that workers with the right skills and training
would be more productive and efficient.
• 6. Elimination of Soldiering:
• Taylor observed that workers often intentionally restricted their output to avoid overexertion. He called this "soldiering" and believed that it hindered productivity. His
methods aimed to eliminate soldiering by providing clear standards and incentives for higher productivity.
• 7. Scientific Approach to Management:
• Taylor emphasized the application of scientific methods to management decisions rather than relying solely on intuition or tradition. He advocated for managers to
analyze data, gather evidence, and make decisions based on objective information.
• While Taylor's Scientific Management principles led to significant improvements in productivity and efficiency in many industries, his
methods also attracted criticism. Critics raised concerns about worker well-being, potential dehumanization of work, and the
oversimplification of complex tasks. Over time, modern management practices have evolved to consider not only efficiency but also
employee satisfaction, creativity, and the broader context of organizational performance.
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Administrative Management Theory
Fayol Technical activities Commercial activities Financial activities
• (Production, • (Buying and selling) • (Search for and best use of
• Fayol’s Three Aspects of Management Manufacturing) capital)
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General Criticisms on Classical Approach
Too much emphasis on principles, structures and
methods (Technical Factors) in order to improve
productivity
Social and psychological needs of the workers were
not recognized
Worker is considered as a slave or a machine
Too much emphasis on capital as the main input
factor
Not recognized the formal and informal behaviour
of humans
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Modern management theorists
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Modern management theorists
• Charles Handy: Charles Handy is an
Irish author, philosopher, and
management thinker. He is known
for his insights into organizational
culture and the changing nature of
work. One of his notable
contributions is the concept of the
"Shamrock Organization," which
describes the evolving employment
patterns where organizations have
a core of full-time employees, a
group of contracted or freelance
workers, and outsourced services.
He has also written extensively on
the concepts of the "Sigmoid
Curve" (describing the life cycle of
organizations) and the "Portfolio
Worker" (an individual who
engages in a variety of roles and
activities).
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Theories and definitions of
leadership:
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Leadership
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Approaches to leadership theories
• Approaches to leadership encompass various philosophies, styles, and strategies that leaders adopt to guide
and influence their teams. Here are some key approaches to leadership, including situational,
transformational, and inspirational leadership:
• 1. Situational Leadership: This approach, as discussed earlier, emphasizes that effective leadership depends
on adapting to the situation and the readiness of followers. Leaders adjust their style based on factors like
follower competence and commitment. This approach recognizes that there's no one-size-fits-all leadership
style and that leaders need to be flexible to be effective.
• 2. Transformational Leadership: Transformational leadership focuses on inspiring and motivating followers
to achieve extraordinary outcomes. Leaders using this approach create a compelling vision, model desired
behaviors, and encourage personal growth in their followers. They promote a sense of purpose and
commitment, often leading to higher engagement and performance.
• 3. Inspirational Leadership: Inspirational leadership involves cultivating a sense of purpose and vision that
resonates with followers on an emotional level. Inspirational leaders articulate a compelling narrative,
connect with people's values, and empower them to contribute to a greater cause. This approach aims to
create a shared sense of mission that motivates and engages the team.
• 4. Servant Leadership: Servant leadership centers around the idea that leaders should prioritize serving their
followers and the broader community. Leaders who adopt this approach focus on empathy, collaboration,
and supporting the growth and well-being of their team members. By serving their followers, they aim to
create a positive and nurturing work environment.
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Approaches to leadership theories
• 5. Authentic Leadership: Authentic leaders are true to themselves and their values. They
emphasize transparency, honesty, and ethical behavior. Authentic leaders build trust by
demonstrating consistency between their words and actions. They encourage open
communication and foster an environment of mutual respect.
• 6. Transactional Leadership: Transactional leadership focuses on the exchange of rewards and
punishments for performance. Leaders using this approach set clear expectations, reward desired
based on their personality, the needs of their teams, and the demands of the situation. Flexibility
behaviors, and correct undesirable ones. While it might be effective in certain situations, it's often
criticized for being less focused on intrinsic motivation and long-term growth.
• 7. Laissez-Faire Leadership: Laissez-faire leadership involves minimal interference by the leader,
allowing team members to make most decisions themselves. While this approach can empower
and encourage autonomy, it might lead to a lack of direction and accountability if not balanced
properly.
• 8. Charismatic Leadership: Charismatic leaders use their personal charm and vision to inspire
followers. They have a strong influence on their teams through their ability to articulate a
compelling vision and create an emotional connection.
• Each of these approaches has its strengths and limitations. Effective leaders often integrate
aspects of multiple approaches and adaptability are key to successful leadership in today's
dynamic and complex organizational environments.
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Approaches to leadership theories
Transformational theories of Charismatic Leadership
leadership •Conger & Kanungo
•Bass
Great Man Theory •Bennis & Nanus.
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Transformational Leadership
• Theorist: James MacGregor Burns
• Definition: Transformational leadership is Four I's of Transformational Leadership:
a leadership style in which leaders inspire
and motivate followers to achieve Idealized Influence (Charisma): Inspirational Motivation:
extraordinary outcomes. It involves • Transformational leaders serve as role •These leaders inspire and motivate
elevating followers' consciousness and models and gain followers' respect, followers by creating a compelling vision
values, encouraging them to transcend trust, and admiration. They exhibit high
ethical standards and act in ways that
of the future. They communicate the
vision effectively and encourage
their self-interests for the greater good of align with their values. followers to share in that vision.
the organization or society.
• Key Concepts:
• Burns introduced the concepts of Intellectual Stimulation: Individualized Consideration:
transformational and transactional • Transformational leaders encourage •Transformational leaders provide
leadership. He identified transformational creativity and critical thinking among individualized attention and support to
leaders as those who engage with followers their followers. They challenge the
status quo, encourage innovation, and
each follower. They listen to their
concerns, provide coaching and
in a way that raises their motivation, promote open dialogue. mentoring, and help followers develop
morale, and performance to a higher level. their potential.
• Transformational leaders are focused on
creating a shared vision, promoting
innovation, and fostering a sense of
purpose and identity.
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Transformational Leadership
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Transactional Leadership
• Bennis and Nanus (1985) suggested a new theory
of leadership based on a study they conducted on 90
leaders, for the purpose of discovering what is
• Theorists: Warren Bennis common to leadership and leaders.
(early ideas) and Bernard Bass • Found that there are 4 types of “Human Handling
Skills” common to leaders:
(expanded upon the theory)
• Description: Transactional Strategy 1: • Attention through vision
leadership is based on a
transactional relationship Strategy 2: • Meaning through communication
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Transactional Leadership
• Bennis and Nanus research
Leaders had a clear vision of the future state of their organizations
• Forge the Future
• Seeing visions
• Develop understanding
• Always communicate the Vision and promote it.
Leaders created trust in their organizations by making their own positions clearly known and then standing by them
• Stay with task- (Constancy)
• Walk the talk- (Congruity)
• There in need- (Reliability)
• True to their word (Integrity)
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Fiedler’s LPC Theory
• Fiedler's Contingency Theory of Leadership, also known as the Least Preferred Co-Worker (LPC) Theory, is a leadership model
developed by Fred Fiedler in the 1960s. This theory focuses on the interaction between the leader's personality and the
situational context to determine leadership effectiveness. The theory proposes that there is no universally effective leadership
style; instead, the effectiveness of a leader depends on the match between their leadership style and the situational
favorableness of the environment.
• Key Concepts of Fiedler's LPC Theory:
• Least Preferred Co-Worker (LPC) Scale:
• Fiedler introduced the LPC scale to assess a leader's leadership orientation. The scale asks leaders to think of the person with whom they have had the most
difficulty working (the "least preferred co-worker") and rate that person on a series of bipolar adjectives. A high LPC score indicates a more relationship-
oriented leader, while a low LPC score suggests a task-oriented leader.
• Situational Favorableness:
• Fiedler proposed that situational favorableness is determined by three main factors: leader-member relations (the quality of relationships between the
leader and group members), task structure (the clarity and routine of the task), and position power (the leader's formal authority).
• Matching Leadership Style to Situation:
• Fiedler's theory suggests that leaders with a relationship-oriented style are more effective in situations that are moderately favorable (neither highly
favorable nor highly unfavorable). Task-oriented leaders are more effective in situations of high favorableness or low favorableness.
However, relationship-oriented leaders usually view their LPCs more positively, giving
them a higher score. These are high-LPC leaders. High LPCs focus more on personal
connections, and they're good at avoiding and managing conflict. They're better able to
make complex decisions.
Fiedler’s LPC Theory
• Critiques of Fiedler's LPC Theory:
• Lack of Flexibility:
• Critics argue that Fiedler's theory is overly rigid in its assumption that leaders have a fixed leadership style. In
reality, leaders are capable of adapting their style to different situations.
• LPC Scale Reliability:
• The LPC scale used to measure leadership style has been criticized for its subjectivity and lack of consistency in
scoring.
• Complexity:
• Fiedler's model can be complex to apply in real-world settings due to the multiple situational factors that need
to be considered.
• Limited Practicality:
• The theory's reliance on LPC scores and the factors of leader-member relations, task structure, and position
power can be challenging to apply in a practical and accurate manner.
Despite these critiques, Fiedler's LPC Theory contributed to the understanding of the
contingency nature of leadership. It also paved the way for subsequent leadership theories
that expanded on the concept of adapting leadership style to different situations.
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The Vroom-Yetton-Jago Decision Model
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The Vroom-Yetton-Jago Decision Model
• Situational Factors:
The model considers several situational factors that influence the choice of decision-
making style, including the quality of information available, the importance of
subordinates' commitment to the decision, and time constraints.
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Hersey and Blanchard’s Situational Theory
• The Hersey-Blanchard Situational Leadership Theory was created by Dr. Paul Hersey, a professor
and an author of “The Situational Leader” and Ken Blanchard, author of best selling “One-
Minute Manager” in the 1980s.
• Hersey and Blanchard focused on four different leadership behaviors based on the levels of
directive and supportive behavior:
– Telling is where the leader demonstrates high directive behavior and low supportive behavior
– Selling is where the leader demonstrates high directive behavior and high supportive behavior
– Participating is where the leader demonstrates low directive behavior and high supportive behavior
– Delegating is where the leader demonstrates low directive behavior and low supportive behavior
Telling (directing) is where the leader demonstrates
high directive behavior and low supportive behavior
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Charismatic Leadership
• Theorists: Jay Conger
and Rabindra Kanungo
• Description:
Charismatic leadership
theory focuses on the
personal charisma and
magnetism of leaders.
Charismatic leaders
inspire and motivate
followers through their
compelling vision,
personality, and
communication skills.
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Charismatic Leadership
52
Charismatic Leadership
• Key Contributions of Conger and Kanungo:
Jay Conger and Rabindra Kanungo have contributed to the understanding of charismatic leadership
in the following ways:
• The Charismatic Leadership Process: Conger and Kanungo expanded on the process of
charismatic leadership, emphasizing that charisma is not solely a personal trait but is also a result
of the interaction between the leader, followers, and the situation. They proposed that charisma
emerges when followers attribute extraordinary qualities and abilities to the leader, allowing the
leader's influence to grow.
• Charismatic Leadership and Transformational Leadership: Conger and Kanungo highlighted the
connections between charismatic leadership and transformational leadership. They noted that
charismatic leaders often exhibit transformational behaviors, such as creating a shared vision,
inspiring followers, and encouraging personal growth.
• Downside of Charismatic Leadership: While charismatic leaders can have a positive impact on
organizations, Conger and Kanungo also recognized potential downsides. They highlighted that
excessive dependence on a charismatic leader can lead to problems when the leader leaves, as
the organization might struggle to maintain its momentum.
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Charismatic Leadership
• Application and Critiques:
• Charismatic leadership has been observed in various contexts, from business to
politics and social movements. Charismatic leaders often play a crucial role in
times of change, crises, or when a bold vision is needed to inspire followers.
• Critics have raised concerns about the potential dangers of charismatic
leadership, such as the cult of personality and the risk of followers blindly
following the leader without critical evaluation. Additionally, the effects of
charismatic leadership can vary based on the culture and context of the
organization.
• Despite the critiques, Conger and Kanungo's contributions have enriched our
understanding of charismatic leadership and its nuances. Their work has helped
leaders and scholars recognize the multidimensional nature of charisma and its
implications for effective leadership.
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Emotional Leadership
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Emotional Leadership
• Daniel Goleman's Six Leadership Styles:
• Coercive Style: This style is characterized by a leader's demand for immediate compliance. It relies on the
leader's authority and is most effective in situations that require rapid and clear decision-making. However,
it can lead to a negative work environment and resentment if overused.
• Authoritative Style: The authoritative leader provides a clear vision and direction while also being open to
input from the team. This style is effective when a new direction is needed or when the team lacks a clear
sense of purpose.
• Affiliative Style: Leaders who use the affiliative style prioritize building relationships and creating a
harmonious work environment. This approach can boost morale and improve teamwork, but it might not be
effective in situations that require tough decisions or performance improvement.
• Democratic Style: The democratic leader involves team members in decision-making, seeking their input
and collaboration. This style is useful when diverse perspectives are needed, but it might be time-consuming
and less effective when quick decisions are required.
• Pacesetting Style: Pacesetting leaders set high standards for themselves and their teams, expecting
excellence and leading by example. While it can drive high performance, it may also lead to burnout and a
lack of innovation if not balanced with other styles.
• Coaching Style: The coaching leader focuses on the personal and professional development of individual
team members. This approach is effective for building long-term capabilities and fostering employee growth.
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Emotional Leadership
• Application and Critiques:
• Goleman's model helps leaders understand how different emotional intelligence
competencies can be applied to various leadership scenarios. Effective leaders
often use a combination of these styles depending on the situation and the needs
of their team.
• Critics point out that the effectiveness of each style depends on the context and
the emotional intelligence of the leader. Using a style that aligns with the leader's
natural strengths and competencies can yield better results. Additionally,
overusing a single style can lead to imbalanced leadership and unintended
consequences.
• Overall, Goleman's framework has had a significant impact on the way leadership
is understood and practiced, emphasizing the importance of emotional
intelligence and the ability to manage emotions in leadership roles.
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Leadership Skills
• Leadership skills are essential for effectively guiding and influencing
others to achieve organizational goals.
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Leadership Skills
8. Emotional Intelligence: 9. Adaptability: 10. Empathy:
• Emotional intelligence involves • Adaptability is the ability to respond • Empathy involves understanding and
understanding and managing one's own effectively to changing circumstances considering the feelings, perspectives,
emotions and the emotions of others. and uncertainties. Leaders who can and needs of others. Empathetic
Leaders with high emotional adapt to new challenges and leaders build stronger connections,
intelligence can navigate interpersonal opportunities lead their teams with foster a positive work environment, and
relationships, handle conflicts, and flexibility and resilience. make informed decisions.
inspire others.
• Leadership skills are not static; they can be developed and refined over time through learning, practice,
and self-awareness. Effective leaders continuously seek opportunities to enhance these skills to better
lead their teams and organizations.
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Leader's Competences
61
"Hard skills" and "soft skills“ of a leader
• "Hard skills" and "soft skills" are terms commonly used to • Soft Skills of Leadership:
distinguish between two different sets of skills required for
different aspects of roles, including those in management • Soft skills, also known as interpersonal or people skills, are
and leadership. essential for effective leadership and interpersonal
interactions. They revolve around how leaders interact,
• Hard Skills of Management: Hard skills refer to the specific communicate, and collaborate with others. In leadership
technical or specific knowledge and abilities required to roles, soft skills include:
perform specific tasks. In the context of management, hard • Communication: Effective listening, clear and persuasive
skills often include: communication.
• Emotional Intelligence: Understanding and managing one's
emotions and those of others.
• Financial Management: Understanding budgets, financial • Empathy: Understanding and appreciating others' perspectives
statements, and cost analysis. and feelings.
• Project Management: Planning, organizing, and executing • Adaptability: Flexibility in response to changing situations and
projects efficiently. environments.
• Data Analysis: Utilizing data to make informed decisions and • Conflict Resolution: Skillful handling of conflicts and disputes
develop strategies. within teams.
• Operations Management: Managing processes, logistics, and • Influence and Negotiation: Persuading and collaborating to
operational efficiency. achieve desired outcomes.
• Industry-specific Expertise: Specialized knowledge relevant to • Problem Solving: Analyzing complex situations and finding
the industry or sector. innovative solutions.
• Technical Proficiency: Competence in using relevant software, • Team Building: Creating a positive team culture and fostering
tools, or equipment. collaboration.
• Regulatory Compliance: Knowledge of laws, regulations, and • Motivation: Inspiring and motivating team members to achieve
industry standards. their best.
• Decision-Making: Making informed and thoughtful decisions
Integration of Skills: that consider multiple factors.
Both hard skills and soft skills are crucial for effective management and leadership. While hard skills provide the
foundation for technical tasks and operational responsibilities, soft skills are essential for building relationships,
leading teams, and adapting to dynamic situations. Effective leaders often have a balance of both types of skills and
are able to adapt their approach based on the specific demands of their roles and the needs of their teams and
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organizations.
Impacts of leadership and
management:
63
Difference between leader and manager
64
Positive impacts of the Leader
• Effective leadership plays a crucial role in driving 2. Effective Management of Resources: Leadership
positive impacts on various aspects of business impacts the efficient utilization of resources within an
performance, resource management, and organization, including financial, human, and
innovation. technological resources.
• Resource Allocation: Leaders allocate resources
strategically to ensure that they are used in the most
1. Business Performance: Effective leadership effective and efficient ways.
contributes significantly to overall business • Talent Management: Leaders identify and nurture
performance and success. Leaders who provide clear talent, ensuring that employees are in roles that match
their strengths and that they receive the necessary
direction, set achievable goals, and inspire their training to excel.
teams can create a more focused and motivated • Team Collaboration: Effective leadership encourages
workforce. This, in turn, leads to improved teamwork, allowing resources to be shared and
productivity, efficiency, and ultimately, better leveraged for collective success.
financial results.
• Strategic Alignment: Leaders ensure that the entire
organization is aligned with its strategic goals, ensuring
that everyone is working towards the same objectives.
• Motivation and Engagement: Effective leaders inspire
and engage employees by fostering a positive work
culture, recognizing achievements, and providing
opportunities for growth and development.
• Communication: Strong communication skills help
leaders convey expectations, changes, and important
information clearly, reducing misunderstandings and
enhancing collaboration.
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Positive impacts of the Leader
3. Innovation: Innovation is crucial for staying
competitive in today's rapidly changing business
landscape. Leaders who foster a culture of
innovation can drive creativity and new ideas • In summary, leadership has a profound
within their teams. impact on business performance, resource
• Encouraging Risk-Taking: Leaders who support management, and innovation. Effective
calculated risk-taking and don't punish failure leaders create a positive and productive work
create an environment where employees feel environment, align teams with strategic goals,
comfortable exploring new ideas.
• Empowering Creativity: Effective leaders
and drive innovation that leads to long-term
empower their teams to think creatively and success. Their ability to motivate, guide, and
provide the autonomy needed for innovation to inspire their teams is essential for achieving
flourish. sustainable growth and maintaining a
• Open Communication: Leaders who encourage competitive edge.
open communication and value diverse
perspectives create an environment where
innovative ideas can be freely shared and
discussed.
• Leading by Example: Leaders who embrace
innovation and experimentation themselves set
an inspiring precedent for their teams to follow.
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Negative impacts of the leader
Leaders can have negative impacts on organizations when they exhibit ineffective or
detrimental leadership behaviors.
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Negative impacts of the leader
• 4. High Turnover Rates: Leadership behaviors that do not promote employee growth and
development, or that create a toxic work culture, can contribute to high turnover rates.
Losing skilled employees due to poor leadership can disrupt productivity and lead to
increased recruitment and training costs.
• 5. Poor Communication: Leaders who do not effectively communicate with their teams
can lead to misunderstandings, confusion, and a lack of clarity in roles and expectations.
This can negatively impact collaboration, decision-making, and overall performance.
• 6. Resistance to Change: Leaders who resist or hinder necessary changes can hinder the
organization's ability to adapt to new market trends, technologies, or customer
demands. This can lead to missed opportunities and decreased competitiveness.
• 7. Lack of Innovation: Leaders who discourage risk-taking and innovation can stifle
creativity within the organization. This can hinder the development of new products,
services, and processes that are necessary for growth and competitiveness.
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Negative impacts of the leader
• 8. Ethical and Legal Issues: Leaders who engage in unethical or illegal
behaviors can damage the organization's reputation and lead to legal
repercussions. Ethical lapses at the leadership level can erode trust with
stakeholders and customers.
• 9. Poor Decision-Making: Leaders who make poor decisions due to lack
of information, bias, or inadequate analysis can negatively impact the
organization's strategic direction and financial performance.
• 10. Negative Organizational Culture: Leaders who exhibit negative
behaviors such as favoritism, micromanagement, or lack of
accountability can create a toxic organizational culture that impacts
team dynamics, employee morale, and overall performance.
Overall, poor leadership can have far-reaching consequences that impact
the organization's success, employee well-being, and reputation. It's
essential for organizations to invest in leadership development, provide
feedback to leaders, and hold them accountable for their actions to
mitigate these negative impacts.
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