Management, Leadership, Power & Authority Dynamics

Foundational Concepts in Organizations

• Application
• Power (McClelland)
• Achievement (McClelland)

Management and Leadership Principles

The Director's Role in Resource Management

The director's role involves the process by which those responsible combine available resources to achieve set objectives.

Defining Leadership in the Workplace

A leader is an individual within a company or group who gains significant influence, potentially exceeding that of other employees. They may operate beyond standard company rules and possess strong support and influence over others.

Consequently, company directors should ideally be perceived as leaders by their staff. However, not all individuals in managerial positions possess the inherent capacity to fulfill leadership roles effectively.

Core Functions of Management

The management process encompasses several key functions:

1. Planning: Defining objectives and allocating the necessary resources to achieve them.
2. Organizing: Developing business plans and structuring resources effectively.
3. Executing: Implementing the company's established plans and programs.
4. Coordinating: Ensuring compliance with and progress of plans and programs.
5. Evaluating: Assessing whether objectives have been met. If not, appropriate adjustments are made during this stage.

Understanding Power and Authority

Authority is the legitimate right to make decisions that contribute to achieving organizational objectives.

Power is the capacity or instrument that authority utilizes to influence the behavior of others.

Types of Organizational Power

• Coercive Power: Compliance is achieved through fear of negative repercussions or punishment.
• Reward Power: Compliance is driven by the expectation of receiving a positive reward or benefit.
• Connection Power: Individuals comply because they believe the leader has influential connections that can lead to rewards or benefits.
• Legitimate Power: Obedience stems from the belief that the individual has the formal right to occupy their position and issue directives.
• Information Power: Influence is derived from possessing or having access to information that others perceive as valuable and necessary.

Exploring Leadership Styles

When a director also functions as a leader, various styles can be adopted to guide the company:

A) Styles Based on Social Climate

1. Authoritarian Style: Characterized by a high degree of top-down direction, with the leader exercising discretionary powers energetically and decisively. The work atmosphere is often unrewarding.
2. Laissez-faire Style: Marked by a near absence of direct leadership, minimal managerial involvement, and maximum freedom for individuals. This approach can sometimes lead to what is described as "total chaos."

B) Styles Based on Decision-Making

1. Autocratic Style: The leader makes decisions unilaterally, without seeking input or considering the opinions of others.
2. Consultative Style: The leader shares problems with employees, actively seeking their ideas and suggestions before making the final decision.
3. Group (Participative) Style: The leader shares problems with the entire group and is willing to accept solutions that are supported by the group.