The learning outcomes (or assessment objectives) for this section of the IB Business Management syllabus are:
Scientific and intuitive thinking/management (HL only) (AO2)
Management and leadership (AO2)
The following leadership styles. (AO3)
Autocratic
Paternalistic
Democratic
Laissez-faire
Situational
Scientific & Intuitive Thinking
What are two occupations that are more suited towards scientific thinking/management and explain why.
What are two occupations that are more suited towards intuitive thinking/management and explain why.
What examples of decisions can you think of for decisions that you might make based in intuition, rather than scientific logic? Try to think of at least 5 examples.
When applying to universities do you use scientific or intuitive thinking?
How should universities decide who to accept?
How should you get a date with your dream partner? Or make a friend?
How should people hiring employees determine who the best candidate is?
Leadership and Management
How does this object relate to leadership and management?
Flashlight
Yo Yo
Ball of Elastic Bands
What are the characteristics of an effective leader?
What are the characteristics of an effective manager?
Which characteristics (traits) apply to both leaders and managers?
Choose your Favourite Management and Leadership Quote"
"We can do things, my way, my way, or my way. Pick one."
"There are two sides to every argument; mine and the wrong one."
"As long as everything is exactly the way I want, I am totally flexible."
"Don't wait for the opportunity, create it."
"I never teach my students, I only provide the conditions in which they can learn."
"To handle yourself, use your head; to handle others, use your heart."
"For a desert, a camel is better than a horse."
"How you react to a situation has the power to change the situation."
"Do what is right and not what is easy."
"Even your shadow changes itself as per light and angle. You should change yourself too."
"It does not matter how slowly you go, as long as you do not stop."
"You're awake you're awesome, live like it."
"Good things take time."
"Freedom is the oxygen of the soul."
"You must work in such a way that the person you work with feels free."
Simon Sinek - How great leaders inspire action (Video)
Leadership Style:
Who is a leader you've worked with that you really look up to? What leadership style did they use and how was this good or not so good for you?
Jigsaw of different Leadership Styles
Autocratic
Paternalistic
Democratic
Laissez-faire
Situational
Jigsaw - Step 1: Specialization (15 min.)
You must become “specialized” in your assigned Leadership Style.
What is the leadership style and for what types of organizations or situations is it suitable?
What are the advantages and disadvantages of your leadership style?
Provide a real life example of a leader who used this leadership style along with the advantages and disadvantages
Also comment on:
Decision Making
Motivation
Situations / Jobs where it's most appropriate
No one leaves the group until everyone understands your leadership style.
Jigsaw - Step 2: Sharing of the Wise (20 min)
Form new groups that has at least 1 “specialized person” of each leadership style (must have at least one person from group 1, 2, 3, 4, 5).
Answer: https://docs.google.com/document/d/1f5NkzFWDuznTfiSi0gT1PrM8BOqUSKK4UMaX7FE19Mc/edit?usp=sharing
What is the leadership style and for what types of organizations or situations is it suitable?
What are the advantages and disadvantages of your leadership style?
Provide a real life example of a leader who used this leadership style along with the advantages and disadvantages
Also comment on:
Decision Making
Motivation
Situations / Jobs where it's most appropriate
No one leaves the group until everyone understands your leadership style.
Distinguish between scientific and intuitive thinking and management. [4 marks]
Explain which form of leadership style might be most appropriate for the following organizations.
(a) A small local restaurant with 12 employees. [4 marks]
(b) The armed forces (military). [4 marks]
(c) A large IB World School that offers the IB Diploma Programme. [4 marks]
What you should know
By the end of this subtopic, you should be able to:
distinguish between management and leadership (AO2)
compare and contrast the following leadership styles: (AO3)
autocratic
paternalistic
democratic
laissez-faire
situational
distinguish between scientific and intuitive thinking/management (AO2) (HL)
https://quizlet.com/_c7njmo?x=1qqt&i=4jrhob
https://www.gimkit.com/view/6356659bad68630021da2258
https://create.kahoot.it/share/123a598a23/b6d998c8-0ea9-457a-9563-74fede643eba
Autocratic management (leadership)
Management style that involves centralised and autonomous decision-making, without input from others in the organization.
Democratic management (leadership)
Management style that actively involves the participation of employees in the decision-making process.
Functions of management
The various roles and responsibilities of managers, i.e., coordinating, commanding, and controlling business operations.
Intuitive thinking (management) (HL only)
A quick approach to management based on the manager’s own values, views, and/or gut feelings that are not always quantifiable.
Laissez-faire leadership (management)
A hands-off approach to leadership by devolving decision-making power to the workforce.
Leadership
The art of inspiring and motivating other people towards achieving a common organizational aim or vision.
Leadership style
Refers to the way in which managers and leaders provide direction for others.
Management
The art of getting things done through others by setting clear objectives and organising organizational resources.
Manager
Someone with decision-making authority in an organization and has responsibility for problem-solving in order to achieve specific organizational goals.
Paternalistic management (leadership)
Management style that involves treating workers as family members, so managers make decisions believed to be in the best interest of the workforce
Scientific thinking (management)
A relatively long approach to management based on objectivity, facts, and empirical evidence. This approach to management and leadership follows a formal and prescribed procedure.
Situational leadership
Leadership style that requires leaders to change and adapt their approach in response to different situations and circumstances.
Scientific Thinking / Management
Scientific thinking and management are based on objectivity, facts and empirical evidence.
Decisions are made on quantifiable data and proof rather than on subjective opinions.
It's decision making and problem solving based on gathering the necessary information and data, and then analysing this, in order to make well-informed choices. It is based on managers being objective, rational, and logical rather than being instinctive or subjective.
They're objective, well informed decisions based on a range of primary and secondary evidence and calculation
Intuitive Thinking / Management
Intuitive thinking and management are based on personal beliefs, perceptions and instincts (gut feelings).
It's decision making and problem solving that are based on instinct and experiences, rather than scientific methods such as logic, empirical evidence, and data. It is based on people's knowledge, insights, gut feelings, instinct, an inner voice, or faith.
Scientific or Intuitive Decision Making?
Most decisions are based on a combination of both scientific and intuitive aspects.
The choice of decision-making depends on numerous factors such as:
Extent of work experience.
The scale of the decision.
The urgency of the decision.
Management
The work of directing a business organisation’s limited resources to achieve business objectives.
Responsibilities:
planning
coordinating – ensuring that everyone is performing their assigned duties and that efforts among employees are coordinated
commanding – making decisions that impact a business’s day-to-day operations
controlling – ensuring task and project completion
resolving problems – solving day-to-day issues that arise
In general, management can be categorised into three levels:
Senior management are the highest-ranking managers who set and oversee the long-term plans and strategies of the organization. They are ultimately held responsible for the results of the business.
Middle management are managers who establish departmental goals and strategies and are responsible for the staff within their respective divisions.
Supervisory management (or junior management) are the lower-ranking managers who monitor the regular and routine day-to-day tasks of the organization.
Leadership
The use of strategic and creative thinking that inspires people to meet challenges and accomplish goals.
A leader has a more visionary role in a business than a manager. Strong leadership is required to keep a company operating competitively, which involves strategic and creative thinking. Leaders inspire and challenge the status quo; they engage in the fundamentally important task of ‘thinking outside the box’.
Successful leader:
a guiding vision
passion
integrity – consisting of self-knowing, honesty and maturity
trust
curiosity and daring
The rarest commodity is leadership without ego: Bob Davids at TEDxESCP
Leadership vs Management, What's the Difference? - Project Management Training
Management and Leadership Quotes
Leader or Manager?
"We can do things, my way, my way, or my way. Pick one."
"There are two sides to every argument; mine and the wrong one."
"As long as everything is exactly the way I want, I am totally flexible."
"Don't wait for the opportunity, create it."
"I never teach my students, I only provide the conditions in which they can learn."
"To handle yourself, use your head; to handle others, use your heart."
"For a desert, a camel is better than a horse."
"How you react to a situation has the power to change the situation."
"Do what is right and not what is easy."
"Even your shadow changes itself as per light and angle. You should change yourself too."
"It does not matter how slowly you go, as long as you do not stop."
"You're awake you're awesome, live like it."
"Good things take time."
"Freedom is the oxygen of the soul."
"You must work in such a way that the person you work with feels free."
Leadership vs Management
Difference between Managers and Leaders - 17 Traits that set them apart
Autocratic. This leadership style is characterised by a domineering and possibly tyrannical approach. It is strong and rule-oriented.
Paternalistic. With this leadership style, the organisation’s interests and its employees are looked after as if they were family.
Laissez-faire. From the French term which can be translated roughly as ‘hands-off’, this leadership style is characterised by a lack of interference from the leader of an organisation.
Democratic. This leadership style values inclusiveness and employees’ input. It is the opposite of autocratic.
Situational. This leadership style is not easy to define. The best way to think of it is as a style that someone adopts for a particular situation.
This leadership style is characterised by a domineering and possibly tyrannical approach. It is strong and rule-oriented.
Autocratic Leader Advantages
leader has complete control of operations
speeds up decision-making process
provides workers clear sense of direction & clarity over their roles
understand exactly what is expected
effective when critical and urgent decisions need to be made
Suitable with Employees: unskilled, inexperienced, lack initiative, need clear directions
Autocratic Leader Disadvantages
Creativity & innovation are suppressed & discouraged as employees are not involved in the decision-making process
Does not build intrapreneurial spirit or leaders in the workplace
Does not develop internal talents of workforce
Demotivates employees as their opinions are not valued
Some don’t like being bossed around
These can result in a higher labour turnover rate, which is costly
Dependent on leader which freezes decision making when absent
With this leadership style, the organisation’s interests and its employees are looked after as if they were family
Paternalistic Leader Advantages
It can motivate staff as they feel guided and that their interests are protected
It can ensure harmonious relationships at work as the leader genuinely values the staff
high loyalty to the leader and the organization
It can create a sense of belonging, helping to meet workers’ safety and social needs (Maslow’s hierarchy of needs)
Overall, these advantages are good for staff morale, motivation and productivity and hence beneficial to the organization (such as lower staff turnover and higher profitability).
Paternalistic Leader Disadvantages
Decision-making is still centralized, so workers can become dissatisfied if their views are ignored
Demotivating being disciplined by a more family like figure
Communication is mainly top-down, from senior management
If the company experiences hard times, difficult decisions will have to be made and employees let go. This can cause great disruption to a business.
This leadership style values inclusiveness and employees’ input. It is the opposite of autocratic.
Democratic Leader Advantages
Workers feel valued as they are actively encouraged to participate in the decision-making process
Workers feel motivated as they are empowered
The most is made out of the skills, experiences and creativity of the employees
Collaboration leads to higher morale and improved productivity
The organization takes advantage of the innovative potential of its employees
Getting regular feedback and consulting employees also helps the organization to better understand their concerns
These advantages benefit the organization from higher levels of motivation and staff loyalty.
Democratic Leader Disadvantages
It may result in disagreement and disharmony; it is not realistic to please everyone, all of the time
It is ineffective when critical decisions need to be made quickly, and sometimes workers just need to do what they are told to get their jobs done
It can be time consuming, especially if managers do not have the time to consult everyone, so decision-making is often delayed
Hence, democratic decision-making can be costly
These disadvantages can cause negative impacts on the daily operations of the organization.
From the French term which can be translated roughly as ‘hands-off’, this leadership style is characterised by a lack of interference from the leader of an organisation.
Laissez-fair Leadership Advantages
Can be motivational as employees have freedom to carry out tasks in any effective way they wish
Encourages individuals to be creative, and thus helps the firm become more innovative
helps to develop an intrapreneurial culture in the organization, helping the business to gain competitive advantages
It helps to build drive (Pink’s motivation theory) among employees because the leader is places implicit trust in the workforce by giving them autonomy in decision-making
Overall, the positive impacts of laissez-faire leadership help to achieve greater productivity, staff morale, lower labour turnover and higher profitability.
Laissez-fair Leadership Disadvantages
Monitoring and coordination of business operations are made more difficult and time-consuming, especially as there is an absence of managerial control
Slack (complacency) can arise due to a very minimal level of supervision involved
It does not suit all workers as they may want or prefer clear guidance and direction; having a large amount of freedom to make decisions can worry some workers.
This leadership style is not easy to define. The best way to think of it is as a style that someone adopts for a particular situation.
Situational leadership Advantages
effective leaders have to be adaptive, rather than rigid in their leadership style
Possibly most practical as it applies to almost all business organizations
The dynamic nature of the external business environment means that leaders have to adjust their style to suit different situations and changes in the market.
Situational leadership Disadvantages
If workers become used to a particular leadership style, they may become disheartened and unsettled if the leader or manager needs changes their style
Most people have a preferred or natural leadership style, so changing or adopting a different style can be difficult and uncharacteristic for them.
Authoritarian, Paternalistic, Democratic & Laissez-Faire - Management/Leadership Styles
Leadership Styles Explained (Kurt Lewin) - however doesn't include paternalistic leadership
Book Suggestion on Intuitive Decision Making: Blink
Movies: Authoritarian Leaders in Business
Review Questions
1. What is scientific thinking and management?
2. What is intuitive thinking and management?
3. What is the main advantage of scientific thinking and management?
4. What is the main advantage of intuitive thinking and management?
5. How does ‘management’ differ from ‘leadership’?
6. What are the main functions of management?
7. What are the main differences between leaders and managers of an organization?
8. What is meant by an autocratic leadership style and when might it be suitable?
9. What is meant by a paternalistic leadership style and when might it be suitable?
10. What is meant by a democratic leadership style and when might it be suitable?
11. What is meant by a laissez-faire leadership style and when might it be suitable?
Figure 9.4 - Culture, traditions and norms have a direct impact on leadership styles
12. What is meant by a situational leadership style and when might it be suitable?
13. What are the five factors that affect situational leadership styles? (Hint: think of the mnemonic ‘CLOTS’).
14. How do cultural differences affect leadership style?
15. How do ethical considerations affect leadership style?