Leaders: Inspire people, build relationships, take risks and have followers.
Managers: Enact the plan, use their authority, manage risks, have subordinates
Both are closely linked and one person may have to do both roles.
Management is doing things right; leadership is doing the right things - Peter Drucker
Traditional Levels of Management
- Board of Directors
- Set corporate objectives and strategic direction
- Board is responsible for shareholders; led by the CEO
- Accountable to senior management
- Run business functions and departments
- Supervisory role, accountable to middle management
- Monitor and control day-to-day tasks, and manage teams of workers
Moving away from Autocratic Styles
Why is this happening?
- Changes in society’s values
- Better educated workforce
- Focus on need for soft HR skills
- Changing workplace organisation
- Greater workplace legislation
- Pressure for greater employee involvement
Blake Mouton Managerial Grid
The ”Blake Mouton Managerial Grid” shows how management styles differ between the balance between a concern for people and concern for results.
Produce or Perish Management is also called Task Management.
Laissez-faire style; minimal effort on management; looking to avoid blame for errors.
Low concern for people and task
Country Club Management
Focus on creating safe, comfortable working environment with minimal conflict.
High concern for people, low concern for task
Autocratic style, consistent with McGregor Theory X. Workers have to complete tasks - nothing else.
Low concern for people, high concern for task.
Staff closely involved in decision-making and feel valued; consistent with McGregor Theory Y.
High concern for both people and task.
Middle of the Road Management
Compromises made to achieve acceptable performance; thought to be the less effective leadership style.
Medium concern for people and task.
Good decisions should be made with consideration towards stakeholders.