• Definitions include:

• Exerting influence on others

• Motivating and inspiring people

• Helping people realise their potential

• Setting a good example

• Encouraging people to achieve their goals

• David Cameron

LEADERSHIP: Motivating and inspiring peopleInnovators – encourage others to accept changeNatural abilities and instinctsRespected and trusted by followers

MANAGEMENTDirecting and monitoring othersProblem solverOfficial position of responsibilityAccepts and conforms to the ‘norms’ of the business

Autocratic Leaders take decisions own their own with no discussionDemocratic Leaders discuss with workers before making decisionsPaternalistic Leaders listen, explain issues and consult with the workforce but will not allow them to make the final decision

Bureaucratic Leaders use rigid complex rules and procedures to direct and lead the organisationLaissez -faire Leaders leave their colleagues to get on with their work so there is no supervisor or control

Theory X leaders believe: workers do not like work and will avoid it if possible,Need to be controlled and monitored, are motivated by money

Theory Y leaders believe: workers do not dislike like work Will seek responsibilityare motivated by other ways rather than control/threatsAre capable of showing initiative

Internal:Skill level and experience of the teamThe work involved – routine or creative?Preferred natural style of the leaderThe time limit – i.e. quick decisions neededExternal:Economic environment rapid decision to secure business survivalNature and speed of change in the industry – technological change comes from workers who have scope for problem solvingLegal changes – new laws such as Health & Safety, may need a directive approachThere is no single right way to manage an organisation that suits all situations. A good manager can switch instinctively between styles.

Managing change:Setting new objectives that recognise the need for changeEnsuring adequate resourcesAppropriate planning

Leading change:Establishing a vision for the business and leading staff towards itMotivating staff at all levels so they are positive and less likely to resist changePut change at the centre of the culture of the organisation

Clear and effective leadership is essential to the success of business especially during periods of rapid change including redundancies and downsizingIn successful business workers look to their leaders for :

Clear vision and a sense of directionSupport and commitment to their welfareConfident and effective decision makingEffective planningFull communication

In organisation with poor management employees expect nothing positive. There is a climate of mistrust. Managers are not respected or trusted. The organisation will have to deal with de-motivated employees as well as the changes necessary

‘Good business leaders are born not trained’To what extent do you agree with this view?

40 Marks

‘During periods of rapid change the role of the leader – more even than a good manager becomes crucial to success’Discuss this view

40 Marks

Business Leaders / Political Leaders?

Meg Whitman Biography (Margaret Cushing Whitman) : Former eBay CEOFamous for : Being the CEO of eBay online auction website from 1998 through to 2007, then advised the next eBay chief executive officer John Donahoe through 2008. She plans to run for governor of California in 2010.

Business Leaders / football Pundits?

• Roman Abramovich Biography: Russian BusinessmanFamous for : Becoming a billionaire from oil and for purchasing the English Premiership football club Chelsea F.C.

“I have no Napoleonic dream. I'm just hard-working and pragmatic.” (practical)

Business Leader / Arabian Prince?• Prince Alwaleed (Prince Al-Walid bin

Talal bin Abdul Aziz Al Saud) : • Investor and Entrepreneur

• Famous for : Being one of the worlds richest people according to Forbes magazine and for being a member of the Saudi Royal Family.

If I’m going to do something, I do it spectacularly or I don’t do it at all.Prince Alwaleed Bin Talal Alsaud -

Nowadays, anyone who cannot speak English and is incapable of using the Internet is regarded as backward.Prince Alwaleed Bin Talal Alsaud -

My wheels are running. My investments are local, regional and international.Prince Alwaleed Bin Talal Alsaud