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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
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Influence vs Administration: Leadership focuses on influencing and guiding people towards a vision, whereas management centers on administering tasks and processes to ensure organizational goals are met.
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People Orientation vs Task Orientation: Leaders are generally more people-oriented, focusing on motivation and team dynamics, while managers are typically task-oriented, concentrating on productivity and efficiency in operations.
Step 2
Discuss the situational and transformational leadership theories.
Answer
Situational leadership theory posits that effective leadership varies according to the maturity level of the followers and the demands of the situation. Leaders must adapt their style based on their group’s capability and readiness, empowering and supporting them accordingly.
Transformational leadership theory emphasizes inspiring and motivating followers to achieve more than their self-interests. Leaders who embody this style foster an environment of trust and collaboration, encouraging creativity and innovation among team members.
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
The autocratic leadership style can lead to quick decision-making and clear directives but may foster resentment among employees, as it limits their input. This style is effective in crisis situations where immediate action is necessary, such as during emergencies or when strict compliance is required.
In contrast, transactional leadership focuses on the exchange between leader and followers, rewarding productivity and task completion. It works well in structured environments where employees know their tasks clearly, but it may stifle creativity. This style is suitable in situations requiring high efficiency, such as meeting deadlines or during performance evaluations.