Business Studies: Leadership & Management


Good morning class. 

Today we are going to start a new topic which is leadership and management.

What is leadership?

Leadership is the ability of an individual or a group of individuals to influence and guide followers or other members of an organization. Leadership cannot be taught, although it can be learned as it is an inborn trait. It involves establishing a clear vision and sharing it with others so that they can willingly follow. 

What is management? 

It is the coordination of planning, organizing, leading and controlling employees to achieve goals. A person becomes a manager because of the position in which he/she is appointed. Managers have power because of the position of authority info in which they are appointed. 


Lets watch the following 5 minutes video so that we can understand the difference between Leadership and management 




After this lesson, you will be able to understand the following:

- What is leadership and what is management 

- Differences between leadership and management 

- Leadership styles 

Task 1


After watching the 5 minutes video fill in the missing word. Choose the word from the following box:

Leadership, Management 

1. ............ influences human behaviour

2. ............ guides human behaviour

3. ............ Controls systems and procedures to get the job done 

4. ............ inspires staff to trust and support each other 

5. ............ Focuses on what and why

6. ............ focuses on how and when 

7. ............ guides/leads people to become active participants 

8. ............ manages the process of getting things done by exercising responsibility

9. ............ always trying to find more efficient ways of completing tasks

10. .......... enforces rules on subordinates /ensure that tasks are completed

11. .......... are people orientated

12. .......... are task orientated 

13. ......... does things right 

14. ......... does the right things 


                                                                        TOTAL MARKS [2*14 = 28]





There are six leadership styles

1. Democratic/Participative 

It is also known as participative leadership or shared leadership, is a type of leadership style in which members of the group take a more participative role in the decision-making process, it is people orientated as employees feelings and opinions are considered. it is a type of leadership that handles conflict situation by involving followers in finding the best solution. 

2. Autocratic leadership 

Autocratic leadership, also known as authoritarian leadership, can most simply be defined as a structure where there is one clearly defined “boss” at the top who holds most, if not all, of the control over distribution of workload and responsibility.

An autocratic leader does not take input from other members of the team when making decisions. Operations, methods, processes and delegation are all decided by the autocratic leader and the autocratic leader only. This type of leadership is task orientated as opinions of employees are not considered. It handles conflict situations by telling followers what they should do. 

3. Laissez-faire

A laissez faire leader is someone who is able to sit back and trust their employees to use their skills and experience to determine their own structures and processes. Listening and learning from them is therefore a key aspect of being a great laissez faire leader

4. Charismatic

Charismatic leadership is defined by a leader who uses his or her communication skills, persuasiveness, and charm to influence others. Charismatic leaders, given their ability to connect with people on a deep level, are especially valuable within organizations that are facing a crisis or are struggling to move forward.

5. Transactional 

Transactional leadership focuses on results, conforms to the existing structure of an organization and measures success according to that organization's system of rewards and penalties. Transactional leaders have formal authority and positions of responsibility in an organization. This type of leader is responsible for maintaining routine by managing individual performance and facilitating group performance. This type of leader sets the criteria for their workers according to previously defined requirements.

6. Bureaucratic 

The bureaucratic leadership style is based on the administrative needs of an organization. Although it is most often found in the public sector, any company can implement this type of leadership style for their teams and departments.



Impact of democratic leadership style 


- The leader allows the employees to participate in the decision making process, so they feel empowered/positive 

- Authority is delegated which can motivate/inspire workers to be more productive 

- Staff gives a variety of ideas/inputs that can lead to innovation/improved production methods/increased sales 


- Incorrect decisions may be made if staff is inexperienced/ not fully informed 

- Decision making may be time consuming because stakeholders have to be consulted 

- Leaders can rely too much on the input of the followers and fail to make final decision


Impact of autocratic leadership style 


- Quick decisions can be taken without consulting/considering followers

- Work gets done in time 

- line of communication is is clear as it is top-down/followers know exactly what to do


- Leaders and followers may become divided and may not agree on ways to solve problem 

- Workers can become demotivated if their opinions are not considered 

- De-motivated workers impact negatively on productivity 


Impact of Laissez-Faire leadership style 


- Subordinates have maximum freedom and can work independently 

- Leaders motivates workers by trusting them to do things themselves /on their own

- Subordinates are experts and know what they want/can take responsibility for their actions 


- Employees can be held responsible for their own work which may lead to underperformance 

- Could lead to conflict when some team members act as leaders 

- Productivity may be compromised with lack of tight control over workers not meeting deadlines 


Impact on transactional leadership style 


- Encourage employees to work hard because they will receive rewards 

- Improve employees productivity and morale 

- Business goal and objectives can be achieved as employees are motivated 


- Employees may become bored/lose creativity as they have to follow rules/procedure 

- A transactional leader will have to monitor the work performance of employees to ensure that expectations are met 

- Managing/controlling employees may be time-consuming 


Impact of charismatic leadership style 


- Expert at selling vision and achieve excellent results 

- Employees are motivated as the leader is energetic /inspiring 

- Inspires loyalty/hard work among employees 


- Leader believes more in him/her than than the team 

- Projects can collapse if the leader leaves them 

- Leaders are intolerant of challenges and regard themselves as irreplaceable


Impact of bureaucratic leadership style 


- Managers ensure that rules/regulations are always followed accurately 

- Works well when tight control measures need to be implemented/followed 

- Health and safety are increased in a dangerous workplace, e.g. construction sites/mine 


- Complicated official rules may seem unnecessary/ time consuming 

- Leaders may acquire power/become authoritative and can disregard inputs from others 

- Very little room for error, so workers feel they are not always treated with dignity 



Lets watch the following role play and answer the question that will follow:


2.1. Mention two leadership styles that are on this role play                                                                       (2)

2.2. Define two leadership styles that you have mentioned on 2.1.                                                            (4)

2.3. Mention 1 advantage and 1 disadvantage of each leadership style mentioned on 2.1.                      (4)


                                                    TOTAL MARKS [12]




Marks are allocated at the end of each question 

Question 1 28
Question 2 12



On our next lesson we will continue with leadership and management on the following:

- Differences between democratic and autocratic leadership style 

- Leadership theories 


Kindly watch the following video in preparation of the next class on leadership theories, make sure that you understand this video so that you can be able to answer questions that may be asked in our next class:



You can use the following link to expand your knowledge on Leadership vs Management 



Teacher Page

If you have questions about this lesson of leadership and management please don hesitate to send me email on the following email address: