Leadership (Edexcel A Level Business)

The Distinction Between Management & Leadership

• 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

Different Types of Leadership Styles

• 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 is influenced by the business circumstances as well as the nature and size of the business

Autocratic leadership style

• 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

Paternalistic leadership style

• 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

Democratic leadership style

• 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

Laissez-faire leadership style

• 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