Summary Leadership - Chapter 15 (A-Level Business 9609 CIE)
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Course
9609 (BUSINESS)
Institution
CIE
This summary contains all the information from Chapter 15 that CIE could ask students about Leadership, such as:
The Purpose of leadership and the qualities needed
Important leadership positions in business (directors, managers, supervisors, workers' representatives, informal leadership)
Theorie...
Leadership - ch 15
15.1 The Purpose of leadership and the qualities
needed
● Successful leadership involves setting a clear direction and vision for an
organisation that others will be prepared to follow
● If circumstances change, a new direction and vision might be needed and
then the leadership of change will be important for success
● Employees want to follow an effective leader and will respond positively to
them
● Without clear and charismatic leadership, workers may be well-managed but
most likely won’t be motivated to help the leader and the business to achieve
its goals
A number of personal qualities have been identified as being common among the
most successful leaders:
● The desire to succeed and sufficient self-confidence that they will succeed
● The ability to be innovative and think beyond the obvious and encourage
others to do the same
● Multi-talented so they understand the discussions about a wide range of
issues affecting their business
● An incisive mind to identify the heart of the issue
● Being inspirational so others follow their example and are part of the success
● Complete honesty, integrity and the highest ethical standards
● Being a good communicator, so their passion and visions are transmitted
● Empathy and EI to understand the employees
Different circumstances need different qualities, but a complete leader is one that
can bring all of these characteristics into their role when the situation demands it
Important leadership positions in business
Directors
● These senior managers are elected into office by shareholders in a limited
company
● They are usually the head of a functional department like marketing
● They’re responsible for delegating tasks, assisting in the recruitment of senior
employees into the department, meeting the department’s objectives set by
the board of directors and communicating these objectives to the department
, Managers
● Any individual responsible for people, resources, decision-making or all three
● They have some authority over other employees below them in the hierarchy
● They direct, motivate, praise and discipline workers in their section or
department
Supervisors
● They’re appointed by the managers to watch over the work of others
● This is not a decision-making role but they have the responsibility for leading
a team of people in working towards pre-set goals
● They are appointed to help workers achieve objectives in a cooperative spirit
Workers’ representatives
● Elected by the workers, either as trade union officials or as representatives on
the works council to discuss with managers areas of concern to the workers
Informal leadership
Informal leaders: a person who has no formal authority but has the respect of
colleagues and some power over them
● Formal leaders or managers are appointed by the organisation
● In any group of people, it is very common for informal leaders to be
established
● Informal leaders can be very important for business performance
● Informal leaders are people who have the ability to lead without formal power,
perhaps because of their experiences, personality or special knowledge
● They may have more influence over workers than formal leaders, especially if
the actual managers are seen as supervisors rather than true leaders and
motivators
● Appointing them as formal leaders might be a wise move, however, the
employees can quickly lose support from workers if they are seen to be
joining the ‘other side’
● However, ignoring informal leaders could lead to some type of industrial action
because they tend to have loyal followers
● In a business where workers and employers work together in a trusting
relationship, managers should attempt to work with the informal leaders to
help achieve the aims of the business
● This is best done by trying to ensure that the informal leader supports the
aims of the business
● Managers are advised not to ignore the informal leader or to diminish their
influence either by switching them to another group or cutting them off from
their colleagues
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