Leadership (Edexcel A Level Business)

• Leadership is about having a vision, sharing that vision with others and providing direction
• Management is the day-to-day organisation of the business, its resources and its staffing
    

The different characteristics of leaders and managers

 

Key differences between leadership and management

• Vision vs. Execution
  Leadership focuses on creating a vision, setting direction, and inspiring others to follow
  Management focuses on executing plans, organising resources and ensuring tasks are completed on time
  
  
• Influence vs. Control
  Leadership focuses on influencing others to achieve a common goal by inspiring and motivating
  Management focuses on controlling resources and processes to ensure that objectives are met
  
  
• People vs. Processes
  Leadership focuses on people, their needs, and their motivation
  Management focuses on processes, structures and systems
  
  
• Long-term vs. Short-term
  Leadership focuses on the long-term vision and strategy
  Management focuses on short-term goals and targets
  
  
• Creativity vs. Efficiency
  Leadership encourages creativity and innovation
  Management focuses more on efficiency and productivity

• Leadership styles are different approaches to leading and managing a team or business
• They reflect the behaviours and attitudes of a leader towards their team members and influence the organisational culture, productivity and performance
• A successful leader will be able to use a variety of leadership styles depending on the situation to achieve the best results for their business
• Four common leadership styles include:
   

Four commonly used types of leadership styles
 

• The choice of leadership style can be influenced by the business circumstances, as well as the nature and size of the business

1. When does the autocratic leadership style work better?

• This style is more appropriate where there is a need for quick decision-making, such as during a crisis
• It may also be more suitable in a small business where the owner is the primary decision-maker and has complete control over the business
  
  

2. When does the paternalistic leadership style work better?

• This style is more appropriate where the staff are uneducated or inexperienced
• They require more guidance and support from their leader
• It can also be effective where the leader needs to build a strong sense of loyalty from their employees
  
  

3. When does the democratic leadership style work better?

• This style is more appropriate when the business needs to encourage creativity, innovation, and employee engagement
• It is also effective in larger firms where decisions require input from multiple stakeholders, or where there is a need to build consensus
  
  

4. When does the laissez-faire leadership style work better?

• This style is more appropriate where the staff are very experienced and require minimal supervision
• It is also effective  where the leader wants to build a culture of independence and self-motivation