Introduction

The leader and the manager have always been playing an important role in an
organization. The success of an organization heavily depends on the way the leader
chooses to lead and manage that organization because if the leader has the right
method of leading and managing people, it will increase the employee’s work efficiency
as well as it helps enhancing the employee’s job satisfaction and motivation which will
eventually result in the higher performance of the employees. This assignment will go
through different concept about leadership and management as well as its different
approaches.

LO1. Differentiate between the role of a leader and the function of a manager.
P1. Define and compare the different roles and characteristics of a leader and a
manager
1. Clearly and comprehensively define:
1.1. Who is a manager?
The manager acts as a bridge between senior management for translating higher-level
strategies and goals into operating plans that drive the business. The challenging role of
the manager is accountable to senior executives for performance and to front-line
employees for guidance, motivation, and support. It is common for managers to feel as
if they are pulled between the demands of top leaders and the needs of the individuals
performing the work of the firm. (John, 2018)

Different levels of manager

There are three levels of management:

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 (Types of Management, 2018)

The top-level managers called a senior manager or chief executive. hese individuals
are at the top one or two levels in an organization, and hold titles such as: Chief
Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer
(COO), Chief Information Officer (CIO), Chairperson of the Board, President, Vice
president, Corporate head. Often, a set of these managers will constitute the top
management team, which is composed of the CEO, the COO, and other department
heads. While the CEO and Vice-Presidents focus more of their efforts on issues of
strategy, investment, and overall coordination, managers are directly involved with the
individuals serving customers, producing and selling the firm’s goods or services, and
providing internal support to other groups. Top managers make decisions that affect the
whole company. Top managers do not direct the company's day-to-day operations, their
job is to target the organization and direct its employees to achieve their goals. Top-
managers are responsible for the effectiveness of the organization's goals; they have a
very clear job. Top managers are mostly those with long experience in the field of
management, they are better at managing the company and some other companies. A
top manager is also an entrepreneur. They can set up a small company and grow until it
grows strong enough. Many top managers possess an advanced degree, such as a
Masters in Business Administration, but such a degree is not required (John, 2018).

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The middle-level manager: Middle managers' job titles include: General Manager,
Plant manager, Regional manager, and Divisional manager. The middle managers have
the responsibility of the highest manager, but not the level of their permission. They are
responsible for implementing the goals set by the management. Managers set goals for
their departments and other business units. Mid-level managers motivate senior
managers to achieve their business goals. Middle managers may also communicate
upward, by offering suggestions and feedback to top managers. Because middle
managers are more involved in solving everyday tasks of the company. They can
provide important information in the company to help top executives achieve goals,
improve profitability for the organization. The work of middle managers is very different
in terms of responsibilities. Mid-level managers can manage a small or large group of
employees, even a business location depends on the size of the company they are
working in and the number of middle managers. Mid-level managers can be hired from
outside the company or can be promoted from first level management (Marica, 2018).

The first-level: The low-level management is the first level management. They are
doing all the work to achieve the goals. Low-level management is the Office Manager,
Shift Supervisor, Department Manager, Foreperson, Crew Leader, Store Manager.
First-level managers assign tasks to employees. Instructs and supervises staff on daily
activities. Ensure quality and quantity of production. Low-level managers are
responsible for staffing. Promote employees to work. They have career plans and
feedback on employee performance for superior managers. In addition, they maintain
relationships and do recruitment tasks for the company (Marica, 2018).

1.2. Who is a leader?

A leader is the one who create an inspiring vision of the future of the group. Motivates
and inspire people to engage that vision.

What is followership?

Followership is the response of people in subordinate positions to those in senior ones.

It is a social relationship between the leader, followers and the group. It is not
subservience or passive obedience to orders. Rather it is a process whereby followers

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engage in constructively critical thinking, and interact with and support the leader to help
achieve a task.

Good followers are accountable for their actions. They can also influence and mould the
leader’s views. When necessary they can even substitute for the leader. (Gibbons and
Bryant, 2018)

1.3. Leader’s use of power and authority.

Power: is the ability or potential to influence decisions and control resources. (Merchant,
2018)

Authority: is the formal right to get people to do things or the formal right to control
resources. (Luca, 2018)

Leaders may use power more than rewards, threats, and information to influence
people. In everyday situations leaders use a variety of power tactics to push or prompt
people into particular action. There are plenty of examples of power tactics that are
quite common and employed every day. Some of these tactics include bullying,
collaboration, complaining, criticizing, demanding, disengaging, evading, humor,
inspiring, manipulating, negotiating, socializing, and supplicating. These power tactics
can be classified along three different dimensions: softness, rationality, and laterality.
(Merchant, 2018)

The term authority is often used interchangeably with power, especially in government.
However, their meanings differ: while power is defined as "the ability to influence
somebody to do something that he/she would not have done", authority refers to a claim
of legitimacy, the justification and right to exercise that power. For example, while a mob
has the power to punish a criminal, for example by lynching, people who believe in the
rule of law consider that only a court of law has the authority to punish a criminal. (Luca
,2018).

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The two main management styles:

Autocratic Management Style

Autocratic management is the form of leadership that allows managers to make

decisions unilaterally with subordinates not being included in decision making and do
whatever they feel is required in order to achieve a goal (Nikolay, 2017).

Example: Hitler always had to be in charge of the affairs in Germany, he had to be in

control of everything. This is shown in the Hitler Youth groups; where youths were
taught follow the rules of Nazism. Hitler told the people of Germany exactly what to do,
for example people were ordered to join the Nazis and help the Nazi cause, like
exterminating the Jews.

Democratic Management Style

In a democratic style, the manager allows employees to participate in decision-making.

This means all decisions are agreed upon by the majority.

Persuasive Management Style: Persuasive leader maintains the final decision-making

control. However, manager makes choices based on the persuasion of employees.
Employees will convince their manager of the benefits of the solution and the manager
will make the final decision (Leigh, 2018).

Consultative Management Style: In management style, the manager consults with

your employees for their thoughts, ideas and feedback. However, ultimately the leader
makes the final decision. This type of management style often leads to loyalty from
employees included in decision-making processes (Leigh, 2018).

Example: All successful leaders are self-actualizing people with loads of self-
confidence. They take responsibility for their actions, they support their teams, and they
don’t make excuses for failures. Among U.S. presidents, there are many examples of
men who brought the democratic/participative leadership style to the Oval Office. Most
of these presidents exhibited traits that reflected a variety of leadership styles.

U.S. presidents with democratic leadership traits:

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1. George Washington: Unlike commanding troops during the American
Revolution, Washington was notably democratic when guiding the U.S.
government. He showed early signs of his democratic leadership style by
appointing strong leaders to his staff. His decision not to serve a third term
exemplified a democratic leader who knows when to pass the torch.
2. Thomas Jefferson: As president, Jefferson was both an authoritarian and
democratic leader. As primary author of the U.S. Declaration of Independence in
1776, Jefferson left no ambiguity about his devotion to democracy: “We hold
these truths to be self-evident, that all men are created equal.” In 1803, he
autocratically bypassed Congress to expedite the Louisiana Purchase for $15
million.
3. Abraham Lincoln: Often considered the epitome of a democratic leader, Lincoln
was autocratic in his decisions throughout his presidency. Although his character
and principles were democratic in nature, Lincoln was an autocratic leader as
president out of necessity. The Civil War demanded decisiveness.
4. Dwight D. Eisenhower: Far more democratic in his approach to defeating
Germany during WWII than his subordinate, Gen. George C. Patton, Eisenhower
was a strategist and consensus builder. Eisenhower is an unusual example of a
military commander who adopted laissez-faire and democratic/participative
leadership styles as commander in chief.
5. John F. Kennedy: A charismatic leader at heart, Kennedy displayed
characteristics of laissez-faire and democratic leadership styles. His
spearheading of the Apollo space program is an example of JFK’s laissez-faire
style. In other cases, he showed autocratic leadership tendencies, such as his
quick decisions during the Cuban Missile Crisis.
6. Jimmy Carter: A former naval commander, Carter exemplified both the qualities
and pitfalls of the democratic/participative leadership style as president. He
surrounded himself with some experienced staff, but he often deferred to
inexperienced subordinates when acting authoritatively would have been a better
choice (Eric, 2016).

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2. The differences between leadership style and management style:
2.1. The main styles
Transactional leadership style: Leaders using the transactional leadership style
receive certain tasks to perform and provide rewards or punishments to team members
based on performance results. Managers and team members set predetermined goals
together, and employees agree to follow the direction and leader ship of the manager to
accomplish those goals. The manager possesses power to review results and train or
correct employees when team members fail to meet goals. Employees receive rewards,
such as bonuses, when they accomplish goals. (Ingram, 2018)

Example: A modern example of this leadership style is Steve Jobs, who was well
known for his authoritarian approach and reluctance to delegate. In his project of Apple
II, he fired one of the best engineer in the team just because he questioning Steve Job’s
desire to create a beautiful font.

The Transformational Leader: The transformational leadership style depends on high

levels of communication from management to meet goals. Leaders motivate employees
and enhance productivity and efficiency through communication and high visibility. This
style of leadership requires the involvement of management to meet goals. Leaders
focus on the big picture within an organization and delegate smaller tasks to the team to
accomplish goals. (Ingram, 2018)

Example: He or she will allow the group to make decisions as a collective, rather than
prescribing action. Also known as participative leadership, this style was used by the
founders of Google when they were first developing the now ubiquitous search engine.
This style in research seem to be more effective.

2.2. The main characteristics and skills of an effective manager and leader:
Traits:

Drive and passion for the work, power at motivating people, self-confidence with
humility, trustworthiness and honesty, good intellectual ability, knowledge, and technical
competence, sense of humor, emotional intelligence, and leadership efficacy.

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Example: leader with the passion: Mother Teresa as a passionate leader: quiet, tiny,
humble: she spent 50 years working among the poorest of the poor in Calcutta and
founded an order, the Missionaries of Charity, that is now active in 133 countries, and
describes its mission “to give Wholehearted and Free service to the poorest of the
poor."

Traits alone are not sufficient to lead effectively. A leader must also behave in certain
ways and possess key skills:

Adaptability to the situation; establish vision, a direction and set high standards for
group members; be visible and maintain a social presence; provide emotional support;
give frequent feedback and accepts feedback; play the roles of servant leaders (some
leaders believe that their primary mission is to serve the needs of their constituents,
including employees, customers, and communities)

Example: Servant leader Nelson Mandela, standing before his people, Mandela said
that he was a humble servant with a passion for his people and the desire to see them
enjoy equality. Sometimes, he would take his speeches to the streets, putting his
personal well-being at risk, and at other times, he endured harsh conditions in prison
just to make his statements heard (Downard, 2018).

3. The link between the management and leadership

Strategic management and leadership can be thought of as planning and execution,
respectively. A company cannot spend all of its time in the planning stage as it can lead
to paralysis by analysis. Simply doing things without any sense of direction can be just
as bad, and very often will lead an organization going down the wrong road. Leaders
give an idea of where the final destination ought to be, and strategic management
provides the resources and direction. Leaders derive from all the planning a pathway of
process and policy which will allow the ultimate goal to be reached. It is a relationship
between two functions that need each other and at the same time, produce desired
results for the organization ( Brighton School of B&M, 2016).

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LO2. Apply the role of a leader and the function of a manager in given context.
P2. Examine examples of how the role of a leader and the function of a manager
apply in different situational contexts.
1. Function of a manager
To become a manager, having a professional knowledge is not enough, management
requires an ability to navigate numerous procedural, structural, and interpersonal
challenges in the process of guiding one’s team to the completion of various goals
(Miner, 2016).

Four Basic Functions of Management Process are: Planning, Organizing,

Leading, Controlling.

Functions of Management Process (iedunote, 2017)

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1.1. Planning
Without proper planning – no task or goal can be completed. Planning means setting a
company’s aim and deciding how best to achieve them. Planning is definitely a
challenging area of management because it often involves executive level approvals
before tackling head on (Julie, 2013).

1.2. Organizing
Once a manager set goals and develops plans, his next managerial function is
organizing human and other resources that are identified as necessary by the plan to
reach the goal. Organizing involves determining how activities and resources are to be
assembled and coordinated. According to Henry Fayol, “To organize an organization is
to give it everything useful for its functioning i.e. raw material, tools, capital and
manpower”. Basically organizing is deciding where decisions will be made, who will do
what jobs and tasks, who will work for whom, and how resources will assemble.

1.3. Leading
Leadership- may be defined as a process by which manager guides and influences the
work of subordinates in desired direction. Managers need to understand their
employees so that they can motivate, praise, and resolve conflicts among team
members in a right and fair way (Miner, 2016). Not only that, employee monitoring is
also a part of leadership. It is the act of watching and directing work and workers.

1.4. Controlling
According to Haimann (1982) (cited by Koont and O’Donell 2017), “Controlling is the
process of checking whether or not proper progress is being made towards the
objectives and goals and acting if necessary, to correct any deviation”. According to
Koontz and O’Donell (2017) “Controlling is the measurement and correction of
performance activities of subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being accomplished”. Controls include
monitoring the progress of the project so that errors can be corrected in time. This is an
important skill to help complete the project smoothly. Therefore, controlling has
following steps: establishment of standard performance, measurement of actual

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performance, comparison of actual performance with the standards and finding out
deviation if any corrective action.

Example

Robert Polet is a pagan in the fashion world, after more than two decades of success as
Unilever's consumer goods manager, Robert Polet moved to high-end fashion when he
was elected president. CEO of Gucci Fashion. Leaving behind the skepticism of public
opinion about the possibility of success, Robert Polet has gradually demonstrated his
true talent at Gucci. In 2007, he was voted by Fortune as one of the top 5 managers in
Europe (Timmons, 2004).

The assertiveness, creativity combined with the flexible leadership of Robert Polet are
the factors that help Gucci reach the success of many people deemed unimaginable in
the international fashion market. Although he has been in fashion for nearly 4 years,
Robert Polet has helped Gucci achieve high growth rates and expand its presence in
Asian countries (Timmons, 2004).

Polet moved to Gucci in the most difficult times when two talented Tom Ford and
Domenico De Sole left. It was predicted that Polet would fail because high-end fashion
was not a frozen item (the area Polet was responsible for at Unilever before he arrived
at Gucci), but they were wrong. By his style and talent, Polet brings unbelievable
success: In four years, the $ 10 million loss of BottegaVeneta (a subsidiary of PPR)
evaporated, replacing $ 80 million in profits. More impressive,RobertPolet in turn
acquired the brands Stella McCartney, Alexander McQueen and Balenciaga, creating a
solid base to expand the market to India, China and the Asian.

Planning

Polet was took a mission to revive Gucci at that time. He suggested that Gucci should
learn from the supply chain management processes of some fast fashion companies
like Zara. In a detail plan, he mentions that Gucci need to have new products in its
stores every six weeks instead of only four times a year (Elena, 2009).

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Origanizing and staffing

When he joined the Gucci Group, Polet restructured Gucci's workforce. Top
management was in charge of some key central functions. For example, the COO
Alexis Babeau oversaw all the decisions concerning acquisitions, disposals, capital
expenditures, and financial investments. Karen Lombardo, the HR head, was in charge
of senior executive hiring, long term incentives, and employees’ cross-brand
movements, while MimmaViglezio, the communications head, supervised the brand’s
companies, media plans, and press releases and revised and approved all senior
corporate interviews (Elena, 2009).

Leading

Polet left for a six-week trip to visit Gucci Group’s stores around the world and meet with
the employees. He visited 187 of our stores in 14 countries, met with about 2,500
employees and visited around 100 stores of competitors (Elena, 2009). It gave him a
view of the company’s culture, the people, how the company worked as well as details
on employees’ performance.Futhermore, the reason why Polet did that is that he
wanted to get closer with his employees, he said that “The trip helped me to learn about
the business, as I had experience in multi-brand management and coaching people but
not in fashion…People saw me, engaged with me, and noticed that I was not biting
them and did not appear arrogant. That gave them the feeling that “there is this funny
Dutchman who is our new leader. I’ve spoken to him, touched him: he’s real and listens
to you; you can phone him or SMS him and he replies.” (Elena, 2009).

Controlling

Polet create meetings more often to control all company’s works.

Gucci Group’s Main Meetings (Elena, 2009):

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Type or name When Participants Main Purpose
of the meeting

Executives Each Polet, Babeay, Viglezio, Discuss the group’s

meeting month Lombardo strategy

( 4 musketeers
)

Management Every four The brand CEO’s, Exchange knowledge anf

committee months Tang, and four information
meeting musketeers

Strategy November PoletandBabeau, Put together the new three

Meetings Viglezio and Lombardo year plan for the brand
met with each CEO and approve the budget

Forecast May Polet and Babeau met Review the progress and
Meetings with each CEO adjust the plan

Financial Every Polet and Babeau met Discuss the operational

Meetings month with each CEO and budget
their finance’s head

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 HR Meetings Once a Polet and Lombardo Discuss staff, promotions,
year met with each CEO and vacancies, hiring, firing
their HR heads and bonuses

Leadership Every two All Gucci Group’s External speakers give a

Conference years executives presentation on a specific
topic and an
outsiders’view on the
company

2. Main leadership roles

2.1. Create and communicate a vision
Setting a clear vision means influencing employees to understand and accept the future
state of the organization. A good leader will influence others to perform their duties by
explaining the vision and the importance of their role in the outcome. Employees will be
more apt to follow (Kat Kadian-Baumeyer, 2018).

2.2. Active in strategic planning

The development of a consistent approach to the analysis of information is necessary
for effective decision-making. Making important decisions before implementation, the
leader must take into account the influence of this choice on all stakeholders. Based on
their knowledge and experience in business, as well as knowledge of the team team will
help the organization identify current and potential problems. It will also provide a
platform for exploring a number of solutions before selecting the final version, so that
the selected solutions are consistent with the mission and goals of the organization
(Elaine, 2012).

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2.3. Role model
To motivate the team the manager need to start seeing yourself as a role model. As a
good example to others.
A good leadership model can be shown through these characteristics: practices self-
reflection – they set exacting standards for themselves and others; is self-aware – they
are open to learning and new ideas; shows empathy – they think carefully about the
impact they have on others; has vision, courage and integrity – they communicate their
vision and expectations clearly so people know where they’re heading; is ready to lead
– they lead by example, they are honest, sincere and practice what they preach.
(Martin, 2018).
2.4. Energize, inspire and motivate people
In modern business, whether a leader can inspire, motivate, and engage employees is
what sets one leader apart from the next.
Motivating employees means to find out enough about the needs and wants of
employees, giving them what they need and providing praise for a job well done. A good
leader knows this and will communicate with his followers to learn more about their
needs and wants. It may be as simple as giving the employees a sweet treat for their
efforts. You must learn what motivators work best for your employees or team members
to encourage productivity and passion (Kat Kadian-Baumeyer, 2018).
Inspiration not only leads to more engaged employees, but it consistently leads to
increased innovation and business achievement. A company that can cultivate the skills
that will inspire, motivate, and engage employees across the organization will gain a
competitive edge in today’s marketplace (Lloyd, 2016).
2.5. Create the culture
Each organization has its own distinctive culture. It is a combination of the founders,
past leadership, current leadership, crises, events, history, and size (Newstrom, Davis,
1993). This results in “rites”: the routines, rituals, and the “way we do things.” These
rites impact individual behavior on what it takes to be in good standing (the norm) and
directs the appropriate behavior for each circumstance.

The climate is the feel of the organization, the individual and shared perceptions and
attitudes of the organization's members (Ivancevich, Konopaske and Matteson, 2007).
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On the other hand, culture is the deeply rooted nature of the organization that is a result
of long-held formal and informal systems, rules, traditions, and customs. This differs
from climate, which is a short-term phenomenon created by the current leadership.
Climate represents the beliefs about the “feel of the organization” by its members. This
individual perception of the “feel of the organization” comes from what the people
believe about the activities that occur in the organization. These activities influence both
individual and team motivation and satisfaction.

Example of leadership role

Clear about vision.Although John McCain probably had great policies for reform, but it
was Obama that managed to explain the vision in a very simple manner. He constantly
used the word ‘change’ in his speech. This word embodied the spirit of his words and it
came out through his conviction in his speeches (Michael, 2016).

Empower others.So often we think of leadership “as someone at the top who is
ordering other people around,” Obama said. He learned that leadership was teaching
people who thought they didn’t have a voice to speak up about the things impacting
their lives (Beth K., 2017)

“This is the moment when we must come together to save this planet. Let us resolve
that we will not leave our children a world where the oceans rise and famine spreads
and terrible storms devastate our lands”.(Barak O., 2016).

Positive Role Model. He was a role model of an essential skill for all communications:
being positive. Every communicator and every presenter must get beyond criticism and
step up to positive ideas and action (Jerry W. 2017). Mr. Obama encouraged the young
people to take such assertive action. “The single most important thing I can do,” he said,
is to “help in any way I can prepare the next generation of leadership to take up the
baton and to take their own crack at changing the world.”

Active in planning.“I’ll spend time in my first year out of office writing a book, and I’m
gonna be organizing my presidential center, which is gonna be focused on precisely this
issue of how do we train and empower the next generation of leadership,” Obama told
Rolling Stone. “How do we rethink our storytelling, the messaging and the use of

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technology and digital media, so that we can make a persuasive case across the
country?” he said.

Create a culture. The president justified the faith of generations who persisted in loving
America – even when the nation refused to love us back. Barack and Michelle Obama
changed how black folks thought of themselves and the wider nation they lived in.
Obama’s attainment of the nation’s highest office illuminated the depth and breadth of
black genius in American society, helping to inspire millions of young people to dream
bigger dreams. (Peniel E J., 2017)

P3. Apply different theories and models of approach, including situational

leadership, systems leadership and contingency.
1. Main approaches of management:
1.1. The classical approach: Fredrick W.Taylor is considered the theory’s father.
Classical approach of management professes the body of management thought based
on the belief that employees have only economical and physical needs and that the
social needs and need for job satisfaction either does not exist or are unimportant.
Accordingly, it advocates high specialization of labour, centralized decision making and
profit maximization (Abhijth, 2011).

Scientific approach: The application of scientific methods to increase individual

workers’ productivity. Updating, studying technologies, tools to improve performance,
productivity.

Managers have to take responsibility to train employees to ensure they know how to do
the job correctly. The responsibility of workers was simply to accept the new methods
and perform accordingly

Administrative management

Henri Fayol developed 14 universal principles for managing, these are some most
influent ideas:

Division of work: employees are ordered into special and suitable positions, match with
expertise, knowledge. This will increase accuracy, productivity, and speed.

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Authority and responsibility: Managers need the power to give orders to employees, and
the power comes with responsibility.

The scalar chain of command: employees need to recognize their hierarchy in the
company, to know who received orders from. However, in emergencies, employees
have the right to report to anyone.

Unity of command: Employees should have only one direct supervisor.

Subordination of individual interest: the interests of the individual must be under the
interests of the corporation to operate well (Kalpana R).

Max Weber developed the theory of bureaucracy:

Organization is divided into many departments with specialized functions (marketing,

sales, production, ...)

The rules are set to ensure success, so the manager's orders will be followed for justice.

The ideal bureaucracy is divided into the following structures and regulations: the
division of manpower into positions, the division between managers and managers, the
recording of decisions, the selection of human resources based on qualifications level,
hierarchy, rule and procedure management.

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Advantages of the method:

Initiate thorough study of assignments and tasks.

Expresses the importance of staffing and training.

Disadvantage:

No respect for the social nature of work and the higher needs of employees.

Not aware of the difference between individuals, often without notice and ignoring the
voice of employees (Johnston, 2018).

Example:

McDonald uses classical approach:

McDonald using classical approach by paying a huge focus on the role of

communication, they have made effective use of transformation took place in
communication and interaction process. Not only to know that whether the
communication has been improved in modern management are, but also its
operation has been explained in classical approach also (Koprowska, 2010). Most
of the management experts believed that to hold on their business operation, the

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require for communication flow to be proper and effective is vital. In McDonald, the
communication role is effective in all aspects between outside stakeholders,
suppliers, vendors, investors, customers, managers, board of director and
employees (Maitza, 2013). The McDonald has focused on improving communication
aspect with very strong manner (Home of disseration 2014).

1.2. The behavioral approach

The behavioral approach to management focuses on human relations and employee
well-being. Rather than simply setting tasks and demanding that they be completed, the
behavioral-style manager helps create conditions that keep workers satisfied and
motivated. Social factors and psychological motivations take on more importance than
financial incentives. This approach assumes the worker wants to work, and that if the
manager provides the right environment, productivity will follow (Ron, 2018).

The work when applying behavioral approach is to emphasize scientific and objective
methods of investigation. The approach is only concerned with observable stimulus-
response behaviors, and states all behaviors are learned through interaction with the
environment.

3 background of this method:

Hawthorne's research: Hawthorne's workers reacted positively when managers

concerned them.

Hawthorne Effect: People react differently when they get attention.

Theory X and the theory of Douglas McGregor:

Theory X is a traditional model of assumptions about people who do not like to work,
shirking responsibility, not aspiring.

This group needs to be monitored closely

Theory Y is the opposite, only those who take responsibility, have the ability to control
themselves and productivity growth.

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Maslow's need Hierarchy:

It is assumed that all the psychological needs of people are assessed on a level from
which the manager seeks to respond and motivate employees to work better. These
needs in order from low to high include physiology, safety, belonging, respect, and self-
awareness.

Advantage:

Contribute an important awareness to HR to improve performance.

Much of the theory provides guidelines for management that can be used to motivate
employees.

Disadvantage:

The method often emphasizes the emotion of the staff, without mentioning the financial
issues.

There is no proven link between employee satisfaction and their motivation, or the
productivity or achievements of a company.

In China, people are very emotional, workers if you love to work more aggressively, do
not even go to other companies with higher salaries.

In Europe or in some places, feeling loved does not make employees want to work
better (Villanova University).

1.3. Quantitative approach:

According to Rana et al 2016, mathematicians, physicists and other researchers were
combined to clarity military issues and the quantitative school of management is a result
of the exploration during World War II. The quantitative approach to management
contains the utilization of quantitative systems, for example, statistics, data models and
computer simulations, to enhance decision making (Rana et al 2016).

The authors state that this approach is additionally referred to claim as numerical
approach, operational research, management science, which is a type of scientific
examination of making decision that target the mathematical tools, statistical tools,

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quantitative modeling, systematic mathematical techniques to deal with the
management issues to the decision situation. It is rational investigation of process to
support the manager about the complicated problems. The issues can be summarized
of the quantitative form at the exhaustive way, in spite of the tools of quantitative is not
the right solution; however, it just serves to manager to clarify and taking choice in
systematic about the critical issues at the looking perspective like to sat model or
equation. Strategic problems, economies concern, engineering and the diverse
sciences subjects are dealt with by this quantitative study of the management (Rana et
al 2016). The study of University of Southern California (USC) shows that quantitative
analysts attempt to recognize and isolate particular factors contained within the
investigation system, look for connection, relationships and causality, and try to control
the environment in which the information is gathered to keep out the risk of factors,
other than the one being considered, accounting for the relationships identified.

There are some advantages of using quantitative approach. The first is that this
technique allows a more extensive examination, which involves to a larger number of
subjects and upgrading the generalization of the results (USC Libraries). Next, the
approach makes better objective and accuracy of results. It is made to give summaries
of date that help speculations about the phenomenon under investigation. The third is
that quantitative approach helps replicating, analyzing and comparing with similar
investigations, which makes a standard of researching (USC Libraries). However, this
approach also has some disadvantages. First, the study of the USC claims that it is
more effective and ready to test theories, yet may miss contextual details; therefore, this
technique gives less detail on behavior, attitudes and motivation because results are
numerical detail. The next disadvantage is that the examination is frequently done in an
unnatural, counterfeit condition with the goal that a level of control can be used to the
exercise. Consequently, the approach may make an opposite between laboratory
results and real-world results (USC Libraries).

1.4. System perspective:

In the study of Chikere and Nwoka (2015), system perspective or organizational
management systems contains several internal subsystems that require to be frequently

22
aligned with one another. McShane and Glinow (cited by Chikere and Nwoka 2015)
state that as corporation develops, they grow more and more complicated subsystems
that has got to coordinate with each other within the process of transforming inputs to
outputs. These interdependencies will simply become complicated that a minor event in
one system might amplify into serious unwitting consequences elsewhere in the
organization. A system view of organization is shown in a figure below:

Input – output model (Chikere and Nwoka 2015)

These are explanations of each item of this system view. Inputs – the composition of
inputs form the external environmental might embody individuals, capital, managerial
skills also as technical knowledge of skills. Teams of individuals creating demands on
the organization such as staff, consumers, suppliers, stockholders, etc are also included
in inputs. Transformation process – “In an organizational system, inputs are transformed
in an effective and efficient manner into outputs” (Chikere and Nwoka 2015). This could
be viewed from completely different views. Focus is on such management functions for
exam ple finance, production, personnel and marketing. External environment – as a
part of the systems model, the external environments plays a key role within the
transformation of inputs into outputs. Outputs – Inputs are guaranteed and used by
transformation through the managerial functions with due thought for external variables
into outputs. Reenergizing the system – it is ought to have note that within the systems
model of management process, a number of the outputs become inputs once more.
Apparently, the satisfaction and new knowledge or skills of staff become vital human
inputs (Chikere and Nwoka 2015).

23
There are two influential concepts. The first is entropy, called closed system. According
to Chikere and Nwoka (2015), the informatics closed systems model is the intellectual
base for ancient cost and quality management approaches. Increasing in entropy or the
tendency to maximum disorder is another key idea in closed systems. This could be as
a result of the system is closed to the environments has no ability to import energy to
counteract the expansion in this closed system. This view, which is demonstrated by the
second law of thermodynamics, means entropy could inevitably tend to breakdown form
a rise in the closed system. The second concept is synergy, called open system.
Chikere and Nwoka (2015) state that this theory has its foundations in biology, notably
Darwin’s work on the change of the species. The common form of synergy is attributed
to Ludwig Von Bertalanffy who used the term ‘general systems theory’ to explain the
main ideas and to differentiate them from entropy system thinking. Bertalanffy claimed
that entropy thinking was not suitable to study biological phenomena as a result of
biological systems interact with their environments, grow and survive. However, it is a
smaller amount forgiving and infrequently the luxury for the environments of living
organisms to learn from errors does not exist (Chikere and Nwoka 2015)

There are some advantages of using system perspective. First, Hammond (2017) states
that it makes organizations investigate appropriate environments conditions, therefore
they will have socially awareness and focus more on targets organizations make. The
second is supplying understanding, which means that the system requires knowledge of
supply functions to take a quality results from the process. As a result, organizations will
develop their collaborative systems, which bring systems together to make a lot of
benefits. Making predictions is the third advantage of the system. It helps knowing
change of environment condition surrounding various systems to predict and proactively
against potential issues; therefore, organizations could make more short or long-term
considerations (Hammond 2017). In opposite view, system perspective can cause
disadvantage, which is that using this system may lead to slower start and more detours
(Leonard and Beer 1994), especially in a large group. This system spends a lot of time
and also requires much experience to understand to reach a decision, if not there will be
a messy and emotional series of discussions (Leonard and Beer 1994).

24
An example of system perspective is the Apple Inc. According to Burke (2011), Steve
Jobs leaded a responsibility culture by creating a series of meeting and they are
familiar for all the staff in this company. On Monday, he had a meet to executive
management team to discuss results, strategic and also check all important
projects. He organized a marketing and communications meeting on Wednesday.
Steve Jobs said that simplicity breeds clarity, which was how he systemized Apple.
He also stated that the company does not have much process but keeping this
implicity system he said is still enough to make all the team in Apple in line (Burke
2011).

1.5. Contingency approach:

This style of management deals with finding the best match between a leader and a
situation. Focusing on how does the leader's/manager’s style fit the context of the
situation. Effective management/leadership is contingent on matching a leader's style to
the right setting. Contingency theory is concerned with styles and situations and
effectively matching the leader and the situation.

There is no single best way to manage people or work in every situation

It depends on situation of people and environment of each organization, each time.

Managers have to base on the tasks, the people, the environment to create the best fit
method, demand.

Contingency approach is built on careful study on organizational structure and

examining individual, and using common sense of the leader to adapt.

Advantages:

Encouraging flexibility and changes, know the employees better

Disadvantages:

Sometime Contingency approach is used as an excuse for not acquiring formal

knowledge about management.

(Contingency approach use in business, smallbusiness.chron)

25
2. Main leadership Theories
2.1. Trait theory
To be a leader you need to have certain characteristics
According to Kanodia and Sacher (2016), Trait theory is the approach to review an
individual personality that identifies and measures the degree to that convinced
personality traits; often thoughts and behavior of a person such as anxiousness,
shyness, optimistic or pessimistic thought, etc. “Trait theorists believe personality could
be understood by positing that all people have certain traits, or characteristic ways of
behaving.” (Boundless Psychology. Boundless, 2015) (cited by Kanodia and Sacher
2016). This theory is based on the characteristics of successful or unsuccessful leaders
and is equipped to predict leadership effectiveness. The resulting lists of traits are used
to compare results of potential leaders to review their chance to success or unsuccess.
Effective leaders usually have different interests, abilities and characters, which are
totally different from unsuccessful leaders who have negative view of those traits. The
theory not only decide that a leader will success or not but also create preconditions
that endow individuals with leadership potential (Kanodia and Sacher 2016).

The study of Kanodia and Sacher (2016) has shown the core traits in a figure below:

The core traits of leaders (Kanodia and Sacher 2016).

Trait theory also has some strengths and weaknesses. The first strength of the theory is
that it helps to categorize and measure discernible behaviors by using objective criteria.
Next, it is an easy theory and valid as lot of analysis has confirmed the foundation and
basis of the theory. However, this theory is not strong as a result of only based on traits,

26
not evaluating all things which make become effective leader such as environment
conditions. Next, the theory will make some subjective judgment in choosing a leader
(Kanodia and Sacher 2016).

2.2. Behavioral theory:

According to leadership-central, behavioral theory of leadership is focus on information
of leader’s specific behavior. For behavioral theorists, it is the best prediction of
leadership influences and therefore, is the best determinant of their leadership success.

There are two types of leader which occur in this theory. The first is task-oriented
leader, whose behaviors are focused on the organizational structure, the operating
procedures and that they prefer to keep control. They are still concern with their staff
motivation but it is not the main one. They prefer appropriate behaviors which
concentrate initiating, organizing, clarifying and information gathering. The second type
is people-oriented leader, who focus on maintaining that the needs of the people are
satisfied. As a result, leader will try to encourage their employee through emphasizing
relation of each person. This leader still focuses on task and staff and will have suitable
behaviors that are in line with encouraging, observing, listening, coaching and
mentoring (leadership-central).

The treatment of these two orientations are like two independent dimensions which
make major step in leadership study and they are conducted at the University of
Michigan and the Ohio State University. To know where leader is stand for, Robert
Blake and Jane Couton (1980s) (cited by Juneja) showed a graphic portrayal of
leadership styles called managerial grid. It describes two dimensions of leader behavior
by x-axis and y-axis, x-axis stands for people which accommodates people’ needs and
priority and y-axis concerns with production (keeping tight schedules). Both are rated
from 1 to 9, the higher score the better leader focuses on. There are 81 different
positions but only 5 important positions are focused on in the figure below:

27
 Managerial grid (Juneja)

The first is Impoverished Management (1,1), which is described as low focusing on both
dimensions, as a result, leader has low concern for staff satisfaction and work deadlines
which lead to disharmony and disorganization. Next, Task Management (9,1) are shown
that leader is dictatorial as a result of less care of employee and only focusing on work.
The staff needs are simply a means to an end, not be taken care of because the leader
believes that effective work is occurred if it is based on proper organization of work
systems and elimination of employee. Third, Middle-of-the-road (5,5) shows that the
leader concerns for people and production in balance. However, they cannot push result
of work and achievement over average performance for organization and the needs of
employee either. The fourth is Country Club (1,9), which is a collegial style by low work
and high people needs that leads to bringing employee to friendly and comfortable
environment. This leader feels that treating their staff more will create self-motivation
and find people who work hard by their own. Finally, Team Management (9,9) means
that leader concerns for people and production in the highest level. Blake and Mouton
stated that this is the most effective style, which results the leader in having

28
empowerment, trust, commitment and respect in creating a team high motivation and
effective environment that automatically leads to high production and staff satisfaction
(Juneja).

The advantage of behavioral theory based on Blake and Mouton’s Managerial Grid is
that it supports managers to analyze their leadership style through grid training by
writing a list of questions that helps them identify what they stand for in both people and
product dimension. The training also helps leader reach to the ideal state of 9,9. On the
other hand, the disadvantage of this grid is that “the model ignores the importance of
internal and external limits, matter and scenario. Also, there are some more aspects of
leadership that can be covered but are not” (Juneja).

2.3. Participative theories:

Participative theories is one of four ways employers make decisions that involve
employees in their decision-making process. Although this style of leadership is not
widespread in the corporate world, some occupations require this type of attitude, such
as social workers, arbitrators, group therapists and facilitators. Some of the most
famous examples of engaging leaders in the corporate world include Donald Trump, Bill
Gates, Bob Diamond, James Parker, Jim Lentz and John Stahl (Isabel, 2016).

Lewin’s Leadership Theory:

Kurt Lewin is considered to be the father of social psychology. He founded what was to
become the National Training Labs (NTL), which created such fields as organization
development, diversity awareness, T-Groups, and contributed much to leadership
theory, particularly democratic leadership. Lewin was forced out of Germany by the
Nazi’s, lost many in his family to the holocaust, and vowed that such issues of diversity
must never get to that ugly level of action again. This became the central vision in
Lewin’s leadership journey. Lewin is still influential over 60 years after his death. In
1939 Lewin conducted a classic study of leadership, and this involved three styles of
leadership: autocratic, democratic, and laissez-faire. Lewin’s study focused on the
training of graduate assistants in the leader behavior styles below (Manning and Kurtis,
2009: p. 19). Autocratic: Tight control over the group and its activities; decisions made
by the leader Democratic: Group participation and majority rule. Laissez-faire: Low

29
levels of any kind of activity by the leader. The results of the study included the
discovery that democratic leadership was more effective for group performance than the
other two styles. The study emphasized the impact of the leader’s behavior, as well as
the value of group participation. Lewin grew to favor the democratic style of leadership,
as espoused below (Lewin, 2010).

2.4. Contingency theory:

Contingency theory is mentioned in management as mid-range theories between “the
two extreme views which state either that universal principles of organization and
management exist or that each organization is unique and each situation must be
analyzed separately” (Zeithaml et al). The contingency approach entails analyzing
unremarkably recurring settings and perceptive how different structures, strategies and
behavioral processes fare in each setting.

There are three major management sub-disciplines that are prevailed in contingency
approaches to theory building and research. First, organization theory, that
concentrates the connection between the external journal of organization design,
environment and organizing process. Strategic management is the second sub-
disciplines that focuses on building and performing organizational goals, strategies and
plans. Finally, organizational behavioral, which is related to the role of people and
teams within the organizations (Zeithaml et al).

30
 Correlation between leader’s LPC scores and group effectiveness (Juneja)

According to Fiedler (cited by Juneja), behavior of a leader is related to the interests of

the leadership situation. There are three related factors determine how favorable a
situation is to a leader. The first factor is Leader-member relations, which review how
leader is trusted and liked by the participants in a group and the willingness of them to
follow leader’s guide. Second, task structure, the degree to describe how the group task
has been structured or unstructured. Finally, position power, the power of leader of the
organizational and the degree to make participants in a group comply with and accept
leader’s direction (Juneja).

Contingency theory creates some advantages of leadership. First, it makes flexibility of

management style. Through Fiedler theory, leader could assess better for their
leadership control to specific organizations demand and create their flexibility of task

31
structure. Second, the theory makes employee opinions matter. According to Fiedler,
relationship between staff and leader is depended by effectiveness of leader and they
have to be appropriate with organizations’ cultures to success. There are also some
disadvantages of this theory. The first is that it lacks of databases, trust and validity of
self-assessment and the second is that not all contingency factors are determined or
might be determined. Even the relationship between the three factors is not well
understood as a result of making conflict or dominating or be more important than
others (Juneja).

2.5. Situational leadership:

Situation leadership is flexible. It adapts to the existing work environment and the needs
of organization. Situational leadership is not based on a specific skill of leader, instead,
he or she modifies the style of management to suit the requirements of the organization.
One of the keys to situational leadership is adaptability. Leader must be able to move
from one leadership style to another to meet the changing needs of an organization and
its employees. These leaders must have the insight to understand when to change their
management style and what leadership strategy fits each new paradigm (Spahr, 2015).

Situational leadership according to Blanchard and Heresy

Their theory is based on two concepts: leadership itself, and the developmental level of
the follower, Blanchard and Hersey developed a matrix consisting of four styles:

1. Telling leaders = S1: These leaders make decisions and communicate them to
others. They create the roles and objectives and expect others to accept them.
Communication is usually one way. This style is most effective in a disaster or
when repetitive results are required.
2. Selling = S2: these leaders may create the roles and objectives for others, but
they are also open to suggestions and opinions. They “sell” their ideas to others
in order to gain cooperation.
3. Participating = S3: These leaders leave decisions to their followers. Although
they may participate in the decision-making process, the ultimate choice is left to
employees.

32
 4. Delegating = S4: These leaders are responsible for their teams, but provide
minimum guidance to workers or help to solve problems. They may be asked
from time to time to help with decision-making (Spahr, 2015).
Stages of employee development in situational leadership

Along with leadership qualities, Blanchard and Hersey defined four types of
development for followers or employees:

1. Low Competence; High Commitment

2. Some Competence: Low Commitment
3. High Competence: Variable Commitment
4. High Competence: High Commitment

Blanchard and Hersey also suggest that each of the four approaches should be paired
with different “maturity levels” among team members. For example, the lowest maturity
level (M1) should work best with the “telling” style (S1), while the highest maturity level
(M4) should be most responsive to the “delegating” approach (S4). (Spahr, 2015)

Differences between situational leadership and other leadership styles

The difference between situational leadership and other leadership styles is that
situational leadership incorporates many different techniques. The style of choice
depends upon the organization’s environment and the competence and commitment of
its followers (Spahr, 2015).

Conclusion
In conclusion, leader and manager is crucial parts of any organizations, they are the
one who in charge of guiding, instructing, and be a role model for their subordinates to
follow. But what makes a leader different from a manager is that leader is the one who
can make their subordinates to work for them willingly through motivating, encouraging
and sharing the passion with their employees while manager is the one who imposes
rules and regulation to make the employees work for the common goals.

33
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