ch 18 and leadership

Question 1

What is the distinction between management and leadership?

Answer 1

leaders have to have management skills but managers don’t need leadership

managers need to get the job done

Question 2

What can leaders be?

Answer 2

visionaries
need to carry out the process of change
must be excellent motivators
devise strategies

Question 3

What are characteristics of leaders?

Answer 3

ability to motivate others
sense of responsibility and personal integrity
Change direction when required
focus on completing a job
solve problems
accept responsibility
self-confident
act decisively
self-motivated
vision**

Question 4

4 different leadership styles?

Answer 4

1-autocratic
2-democratic
3-patenalistic
4-Laissez-Faire

Question 5

What is Autocratic Leadership?
and ad and dis

Answer 5

a leadership style where a manager makes all the decision without consultation
ad: 1 high control
2 quick decision making
dis: 1 unmotivated
2 one way communication no feedback
3 feel ideas ae not valued

Question 6

What is Paternalistic Leadership?
ad dis

Answer 6

leadership style where the leader makes decisions but takes into account the welfare of employees
ad 1 feels valued
2 motivates as best interest’
dis 1 ideas may be good miss out
2 as auto demotivating

Question 7

What is democratic leadership?

Answer 7

a leadership style where managers allow others to participate in decisions making
types
1Persuasive –> make a decision and persuade other
2Consultative –> take into account other views before making a decision
it is seen as more effective because politics is democratic and its more socially accepted
people want more choice and freedom
you can get ideas from other
People involved are likely to be more committed and motivated

Question 8

ad of demo

Answer 8

-better decisions
-involved so more motivated
-solve more problems
-more committed
-builds relationship

Question 9

dis of demo

Answer 9

-longer decision making
-delay decisions

Question 10

What is Laissez-Faire leadership?

Answer 10

leadership style where the leader encourages the employee to make their own decision within certain limits

Question 11

What does an entrepreneur to need do when changing to a leader?

Answer 11

-The need for formality
-The need for shared ownership
-greater responsibility to others
-the need for motivation and inspirations
-the need for strategy and vision

Question 12

fomal

Answer 12

small business can be run informally –> - no need for regular structured meetings,detailed documents – decisions can be made made swiftly because the entrepreneur is always at hand
In a large business –> entrepreneurs need to become leaders –> communications between thousands of employees requires systems and formal structure,
the business will be split up into departments or divisions
there will have formal communication channels,
formal organisation structure so that the business can be in controlled and employees brought to account, the entrepreneur may become a chairperson or a senior executive

Question 13

why does an entrepreneur need to share ownership when becoming a leader?

Answer 13

businesses need to grow - they need capital to fund expansions to obtain funding it is sometimes necessary to invite new owners to contribute capital,
for vary large corporations this usually means selling shares and operating as a plc.

entrepreneurs start as sole traders but as they expand they need to share ownership e.g. with financial institutions such as pensions funds and insurance companies, as well as many very small investors

Question 14

Why may an entrepreneur need to have a greater responsibility to others when becoming a leader?

Answer 14

an entrepeneur running a small business is only likely to have responsibility for a small number of employees.
However, when a business grows into a corporation of the number of people employed could be tens of thousands or more,
the likelihood of these people will often rest on the decisions made by the leader, this is an enormous responsibility
a leader may also have responsibility to other stakeholders, such as shareholders and a far larger number of suppliers and customers

Question 15

Why would a entrepreneur need motivation and inspiration when they become a leader?

Answer 15

as the size of the business grows there is a need t focus more on the workforce this is because there are lot more people manage
-as entrepreneurs develop into leaders there is a greater need for motivational skill. Some people are self-motivated but most people need encouragement and well-defined goal which leaders have to provide worker are likely to look to the leader for support and inspiration

Question 16

need strategy and vision when becoming a leader?

Answer 16

in a small business the owner is likely to be involved in production and other business functions such as marketing finance and administration
however, as the business expands, specialists undertakes most of these task, the leader becomes more concerned and designing business strategies, and providing a vision for the future direction of the company

Question 17

What the difficulties in developing from an entrepreneur to a leader?

Answer 17

-adapting the mindset(entrepreneur usually have a desire for greater control over their life, career and destiny, they want more autonomy and to do things in their own way
leaders need to relinquish some control and learn to delegate and focus on different things)
-Stress(ne major cause of stress i s the worry that debtors will fail to pay what they owe when a business grows more stress comes as there is more at stake
conflict is a common cause of stress in a larger organization, some stakeholders have different needs that might cause conflict)
-Sharing ownership and control
(inviting partners, business angels or shareholders to contribute capital means that business ownership is shared. it also means that future profits have to be shared
Some entrepreneurs may also find it difficult to share control and resent other influencing the shape and direction of a business that they set up from scratch
They may feel that their leadership is being undermined, which may cause ocnflict)
-Trust(as the business grows there is a need to delegate and employ specialists Some leaders find it difficult to delegate and may become suspicious of new senior staff
where specialists are appointed, the leader may feel that the specialists know more than them the leader may feel threatened and concerned that they are being kept in the dark or manipulated)
-lack of leadership qualities

Question 18

how can an entrepreneur struggle with a lack of leadership qualities when becoming a leader?

Answer 18

As entrepreneurs take on more leadership duties there may be concern that they lack the necessary leadership skills and qualities.
These might include management, communication, problem solving decision making and organisational skills

it is true that entrepreneurs also need these skills to be successful
when the business grows theses skills have to be applied on a different scale
the problems are likely to be larger decisions more important and communication more complex
such demands may cause problems for some entrepreneurs as they develop into leaders

Question 19

How can entrepreneurs overcome the difficulties to becoming a leader?

Answer 19

-delegation and trust
-Earn respect
(people will be more trustworthy, effective, and flexible if they are treated well)
-Maturity and experience
-Education(some of the leadership skills can be learnt by attending specialist courses
there are countless courses designed to help business people improve their
management, negotiation, communication and decision-making skills)
-Reduce stress(having a balanced diet
taking regular exercise
resting
having a balanced work/leisure lifestyle
Avoiding alcohol, drugs and tobacco
maintaining a sense of humor
sharing feelings)

Question 20

leader

Answer 20

A leader is a person who inspires and motivates others to meet objectives