Leadership Unit 4 Essay

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1. Explain the theory of the topic..
*Leadership – influencing and directing the performance of group members towards achieving the goals of the organisation. (e.g. Steve jobs, Bill gates)
What do leaders do?
Exert influence on others
Motivate and inspire
Help team/organisation members realise their potential
Setting a good example
Encourage team/organisation members to achieve the organisation’s goals.

What is the difference between Leaders and Managers?
Leaders
Managers
Motivate and inspire others
Direct and monitor others
Innovators who encourage others to accept change
Problem solvers
Stems from personal qualities or traits
Official position of responsibility in the organisation
Natural abilities and instincts
Skilled an qualified to perform role
Believes in doing the right thing
Believes in doing things right
Respected and trusted by followers –they want to follow because of leader’s personality
Listened to by others because of status- not necessarily because of personality
Creates and develops culture of change
Accepts and conforms to the ‘norms’ of the organisation

Effective leaders have…
Ability to communicate
Willingness to Learn
Capable of critical thinking
Great self-motivation and determination to succeed
Management: the process of setting objectives and taking decisions to make the most efficient use of an organisations resources.
Autocratic: leaders take decisions on their own with no discussion
Democratic: leaders discuss with workers before making decision
What factors affect Leadership?
Internal factors
Skill levels and experience of the team
Work involved ‘routine or creative?
The preferred or natural style of the leader – e.g. more inclined to Autocratic or democratic?
The time limit

External Factors
Economic environment
Nature and speed of change in the industry
Legal Changes
“Effective leaders switch between styles according to the people they are working and dealing with and the external environment of the organisation. This is referred to situational leadership”
2. What has changed?
Leadership changed from Bill Gates (founder of Microsoft) to Steve Ballmer (recently left Microsoft – late 2013).
3. Why has it changed?
Bill Gates hired Ballmer and hired him as the company’s first business manager (at a time when the firm had just 29 people on payroll!)
He held different roles including senior vice-president of sales and support, senior vice-president of systems software and vice-president of marketing.
In 2000, he took the top job and succeeded Gates as chief executive - Bill Gates retired as CEO
4. What was the impact of change on Business Performance?
The change in leadership from Bill Gates to Steve Ballmer had both good and not so good results.
Ballmer’s decision making was extremely different to Bill Gates – “he makes relatively few decisions, but he approces decision and he also initiates things that he feels need to happen strategically” Major decision are made “Big ones” e.g. major investment, objectives, resource allocation, big HRM/people decisionsm certainly interest him. His focus Is otherwise on
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