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Successful businesses believe that leadership and management form an integral part of their success - NSC Business Studies - Question 8 - 2016 - Paper 1
Question 8
Successful businesses believe that leadership and management form an integral part of their success. Others argue that management plays a more important role than le... show full transcript
Worked Solution & Example Answer:Successful businesses believe that leadership and management form an integral part of their success - NSC Business Studies - Question 8 - 2016 - Paper 1
Step 1
Give TWO differences between leadership and management.
Answer
- Influence vs. Administration: Leadership focuses on influencing human behavior and inspiring followers, while management primarily deals with administering resources and ensuring tasks are completed effectively.
- Relationship Focus vs. Task Orientation: Leaders cultivate strong interpersonal relationships and promote trust, whereas managers prioritize completing tasks and achieving organizational goals.
Step 2
Discuss the situational and transformational leadership theories.
Answer
Situational Leadership Theory: This theory posits that leaders must adapt their style based on the situation, including team dynamics and individual competencies. It emphasizes flexibility and the need for leaders to assess and respond to the specific needs of their team.
Transformational Leadership Theory: This theory focuses on the ability of leaders to inspire and motivate their followers to exceed their own self-interests for the good of the organization. Transformational leaders foster an environment of trust and intellectual stimulation, encouraging innovation and personal growth.
Step 3
Evaluate the impact of autocratic and transactional leadership styles on businesses and suggest situations in which each leadership style can be applied.
Answer
Impact of Autocratic Leadership: This style can lead to quick decision-making and clear directions, but may also result in low morale and lack of creativity among employees. It is effective in crisis situations where immediate action is required.
Impact of Transactional Leadership: Transactional leaders motivate employees by establishing clear tasks and rewards for performance. However, it can lead to complacency if workers are overly dependent on rewards. This style is effective in structured environments with specific goals, such as meeting deadlines or performance targets.
Situations for Autocratic Leadership: Effective during crises, emergencies, or when team members are not fully engaged or cooperative.
Situations for Transactional Leadership: Suitable when deadlines are tight, there's low employee morale, or established workflows require strict adherence to protocols.