A1 Definitions of management and leadership

Management by objectives is a method of leadership whereby the manager and the employee agree a set of objectives for the employee to work towards rather than the manager simply setting them on behalf the employee. The manager can ensure that the employee’s objectives are in line with the overall organisational or departmental objectives during the meeting. Having a say in what they do can be very motivating for employees which can improve participation in achieving the organisational goals.  

Situational and contingency leadership is a theory that there is not one best style of leadership but different leadership styles are more appropriate depending on the task in hand or the person the leader is working with. For example, a very Laissez-faire approach may be appropriate in the design stages of a product as people may need space for creativity. However, if there was a crisis such as a fire in that same environment, a more autocratic leadership style would be appropriate as it is safer for people to follow clear instructions. Different people feel differently about how they want to be led. Some people feel that they would like to have more freedom in their work and appreciate a laissez-faire or democratic style. However, there are people who prefer to have clear direction. It is therefore important for leaders to understand their staff and how they would prefer to be led.

Functional and action centred leadership places responsibility on the leader to ensure that the team has everything they need to complete a the task in hand. This includes setting clear objectives, exploring the methods by which the task can be done, communicating with the team, coordinating the team, fostering a positive culture, measuring performance and setting an example. John Adair’s Action Centred Leadership model proposes that the task can only be achieved by involvement of the whole team, individuals have to be developed in order to contribute to the team and the tasks have to be challenging and motivating for individuals to get on board.

Transformational and transactional leadership refers to two different styles of leadership that managers tend to take on. Transformational leadership refers to a style where leaders invest in understanding the values and motivations of their teams and find ways to present opportunities for individuals to develop their interests. For example, if a team member was passionate about the environment, the leader may give them opportunities to develop strategies for the organisation to become more environmentally friendly. Transactional leadership refers to a style where a leader establishes what their team wish to receive in return for their inputs. This may include salary or benefits such as holiday leave and medical insurance

The concept of leadership continuum for management behaviour is a scale by which leadership styles are placed based on the level of control they exert on employees and the degree of freedom they give to their employees. The scale ranges from tells, sells, consults and joins.

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A2 Functions of Management