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Summary Varsity College BCOM Year 1 Business Management 1A LU 9
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Varsity College BCOM Year 1 Business Management 1A LU 9
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BMNG – Business LU 9LU 9 – Leading
9.1 Introduction
Orgs employ people to activate the financial, physical and informational resources of the
organisation. Managers perform the function of leading by influencing, guiding and
directing the orgs employees towards achieving the goals of the org.
9.2 The importance of leading
Leadership involves influence and the influence one person exerts over
another person/s.
Other aspects of leadership: intentional with the purpose of achieving specific outcomes,
and that employees should be willing to follow a leader.
Leader is the interdependent relationship between a leader and their followers.
In the leading function, managers take the lead to bridge the gap between formulating
plans and reaching goals. They transform plans into reality by influencing individuals,
groups and teams in the org through communication and a friendly environment.
9.2.1 Leadership and Management
Leadership and management are different:
- Management is broader in scope, comprising 4 management functions incld
leadership
- There are leaders in orgs that are not managers.
The informal leader of the group, may have more influence in the group than the
manager bc of their ability to influence group managers.
Influence = process leaders follow when communicating ideas, gaining acceptance of
them, and inspiring followers to support and implement the ideas through change.
- Influencing is also about the relationship between leaders and followers.
- Managers may coerce employees to influence their behaviour but leaders don’t.
Manage Leader
rs who s who
are not are not
leaders manage
rs
Leadership is not the only component of org success.
1
, BMNG – Business LU 9
9.2.2 Leadership function
Authority relationships relate strongly to the leading function of managers bc the leading
function gives managers the right to use authority, power, responsibility, delegation and
accountability to influence employees to achieve the orgs goals.
Components of leadership:
- Authority - Responsibility - Accountability
- Power - Delegation
AUTHORITY
Authority and leadership are closely related – org grants authority to managers to lead
individuals and groups in achieving the orgs goals.
Without authority, managers are unable to manage, initiate or sustain the management
process.
Authority revolves around obtaining the right to perform certain actions to decide who
does what, to demand the completion of tasks and to discipline those who fail to do what
the org expects of them.
Final authority – rests with the owners or shareholders of the org, who transfer or
delegate authority to the board.
POWER
Without power, a manger might not be able to influence and lead
employees towards achieving org goals.
Managers have 2 types of powers:
- Position power (Top management delegates position power down the chain of
command )
- Personal power (Managers have personal power when their followers bestow it on
them)
Coercive power = power to enforce compliance through fear, whether
psychological, emotional or physical.
Reward power = based on manager’s ability to influence employees with
something of value to them. It concerns the power to give or withhold rewards..
Legitimate power = power an org grants to a position.
Referent power = refers to a managers personal power or charisma. Employees
obey managers with referent power simply because they like them, respect them and
identify with them.
Expert power = power a manager accrues because of his or her expertise,
knowledge and professional ability, particularly over those who need the knowledge or
information.
2
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