7.7: Leading — The Third Function of Management
The third management function is leading—providing focus and direction to others and motivating them to achieve organizational goals.
A leader can be anyone in an organization, regardless of position, who is able to influence others to act or follow, often by their own choice. Managers are designated leaders according to the organizational structure, but may need to use negative consequences or coercion to achieve change. In the organizational structure, top managers use leadership skills to set, share, and gain support for the company’s direction and strategy, mission, vision, and values, as Jeff Bezos does at Amazon. Middle and supervisory management use leadership skills in the process of directing employees on a daily basis as the employees carry out the plans and work within the structure created by management. The top-level leadership demonstrated by Jeff Bezos was also exemplified by Jack Welch during his tenure at General Electric, inspiring numerous studies on his leadership style. Organizations need strong, effective leadership at all levels in order to meet goals and remain competitive.
Governance Board Membership
The Board of Directors serves as a governing body that represents the interests of community stakeholders in non-profit organizations and of shareholders in corporate boards. Forming a skilled and balanced group of individuals to work on boards promotes respectful and productive discussions, which is fundamental to achieving organizational success. Minority populations, however, are found to be vastly underrepresented in the boardroom. In 2020, a report on diversity disclosure practices demonstrated that only 0.5% of board members in Canada were of Indigenous descent. Corporations have yet to realize that Indigenous board members contribute valuable knowledge and perspectives, as well as attract and retain more Indigenous talent. It additionally provides organizations with the opportunity to demonstrate respect for the social, cultural, and environmental values of Indigenous populations. These advantages are expanded upon by Indigenous professional Krystal Abotossaway, who recounts her experiences as a board member.
Watch the Indigenous Lifeways in Canadian Business “Governance Board Membership” video.
Transcript of “Governance Board Membership” video [PDF–New Tab]. Closed caption available in video player.
Source: “Governance Board Membership” by University of Windsor, is licensed under CC BY-NC-ND 4.0, available in Indigenous Lifeways in Canadian Business by Russell Evans, Michael Mihalicz, and Maureen Sterling, licensed under a CC BY-NC 4.0 license, except where otherwise noted.
Leadership Style
There are four basic leadership styles: Autocratic, Democratic, Transformational, and Free-rein (Laissez-faire).
Autocratic Style
Autocratic leaders make decisions independently and expect subordinates to follow detailed instructions. Information flows one way, from manager to subordinate. This style is common in the military and can be effective in emergencies, such as a factory fire, where quick, decisive action is needed. Autocratic leaders may be seen as narrow-minded and controlling, as they typically do not seek input from employees and make decisions on their own.
Democratic Style
Democratic leaders share decision-making with group members and encourage discussion. This style works well in collaborative environments, like a marketing team brainstorming ideas. Participative leaders use a democratic, consensual, consultative style. The leader encourages team participation and values group input before making decisions. There are three types of participative leaders:
- Democratic leaders: Group votes on decisions.
- Consensual leaders: All parties agree on the final decision.
- Consultative leaders: The leader makes the final decision after consulting the team.
Transformational
Transformational leadership is a leadership style that can inspire positive changes in those who follow. Transformational leaders inspire positive changes through energy and passion. They focus on helping every member succeed by conveying a clear vision and recharging the team. This style is effective in modern organizations for team building and innovation, like a tech startup founder inspiring the team to develop a groundbreaking app.
Free-Rein Style
The third leadership style, at the opposite end of the continuum from the autocratic style, is free-rein or laissez-faire (French for “leave it alone”) leadership.
Free-rein leaders provide minimal supervision, allowing employees to make decisions independently. This style works well with highly trained professionals, like a software development team. However, some criticism of free-rein leaders is that this can lead to frustration and confusion if expectations are unclear or feedback is lacking.
Situational Leadership
Effective leaders use situational leadership, adapting their style to match the maturity and competency levels of employees. New hires may need authoritative leadership, while experienced employees may perform better under participative or free-rein styles. This approach empowers employees.
Self-Check Exercise: Leadership Style Quiz
Can you determine the leadership style of these leaders? Try the short quiz below.
Providing focus and direction to others and motivating them to achieve organizational goals.
Those who are considered to be a company's designated leaders according to its organizational structure.
The relatively consistent way that individuals in leadership positions attempt to influence the behaviour of others.
Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates.
Leaders who share decision making with group members and encourage discussion of issues and alternatives; includes leaders with democratic, consensual, and consultative styles.
Leaders who encourage discussion about issues and require all parties to vote on the decision.
Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.
Leaders who confer with subordinates before making a decision but retain the final decision-making authority.
A leadership style that motivates and inspires positive change in followers.
The opposite end of the continuum from the autocratic style is free-rein or laissez-faire (French for “leave it alone”) leadership. Managers who use this style turn over all authority and control to subordinates.
Selecting a leadership style based on the maturity and competency level of those who will complete the task.
