EFFECTIVE LEADERSHIP

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WHAT IS LEADERSHIP?It is the ability to:

• Use motivational strategies to inspire individuals or groups to work toward achieving a common goal

• Encourage people to do their best• Earn the respect of others and give respect to

those who deserve it• Be honest and fair• Provide direction to others• Use the talents, efforts, creativity and synergy of a

group in a way that will produce positive results

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LEADERSHIP STYLESLEADERSHIP STYLES

AutocraticAutocraticDemocraticDemocratic

Laissez-faireLaissez-faireA good leader uses all three styles, A good leader uses all three styles,

depending on what forces are involved depending on what forces are involved between the followers, the leader, and the between the followers, the leader, and the

situation situation

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LEADERSHIP STYLESLEADERSHIP STYLES

Autocratic Democratic Laissez-Faire

Leader Whole Group Employees

Power StylePower Style

EmphasisEmphasis

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Autocratic Leaders

Are goal-oriented

Make all the decisions for their organizations

Expect employees to do as they are told

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Autocratic Leaders

Lack confidence in employees to make correct decisions

Clash with enterprising employees

Causes the most level of discontent in employees

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Autocratic Leaders

An autocratic style works when:

1. There is no need for input on the decision

2. Where the decision would not change as a result of input

3. Where the motivation of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making.

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Autocratic LeadersUse an authoritarian style when:Use an authoritarian style when:

1.1. You have a new employee who is You have a new employee who is just learning the jobjust learning the job

2.2. The leader is competent and a good The leader is competent and a good coachcoach

3.3. The employee is motivated to learn a The employee is motivated to learn a new skillnew skill

4.4. The situation is a new environment The situation is a new environment for the employee for the employee

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Democratic leaders

A democratic leader will still make the final decision

Invites other members of the team however, to contribute to the decision-making process

Normally used when you have part of the information, and your employees have other parts

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Democratic leaders

Note that a leader is not expected to know everything -- this is why you employ knowledgeable and skillful employees

Using this style is not a sign of weakness, rather it is a sign of strength that your employees will respect

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Democratic leaders

As participation takes time, this approach can lead to things happening more slowly, but often the end result is better

Increases job satisfaction by involving employees or team members in what’s going on

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Democratic leaders

Employees feel in control of their own destiny, such as the promotion they desire, and so are motivated to work hard by more than just a financial reward

The approach can be most suitable where team working is essential, and quality is more important than speed to market or productivity

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Democratic leaders

As participation takes time, this approach can lead to things happening more slowly, but often the end result is better

The approach can be most suitable where team working is essential, and quality is more important than speed to market or productivity

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Laissez-faire Leaders

Leader allows the employees to make the decision

Leader is still responsible for the decisions that are made however

Most often, laissez-faire leadership works for teams in which the individuals are very experienced and skilled self-starters

Unfortunately, it can also refer to situations where managers are not exerting sufficient control

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Laissez-faire Leaders

This is used when employees are able to analyze the situation and determine what needs to be done and how to do it

You cannot do everything – you must set priorities and delegate certain tasks!

This is not a style to use so that you can blame others when things go wrong

This is a style to be used when you have the full trust and confidence in the people below you

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LEADERSHIP STYLESLEADERSHIP STYLES

Forces that influence the style to be used included:

• How much time is available

• Are relationships based on respect and trust or on disrespect?

• Who has the information - you, your employees, or both?

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LEADERSHIP STYLESLEADERSHIP STYLESForces that influence the style to be used included:

• How well your employees are trained and how well you know the task

• Internal conflicts

• Stress levels

• Type of task. Is it structured, unstructured, complicated, or simple?

• Laws or established procedures

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Leadership Tasks

Regardless of styles, certain tasks must be performed in an organization, including:

1. Motivating others

2. Resolving conflicts

3. Facilitating communication

4. Managing personal stress

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MOTIVATING OTHERSMOTIVATING OTHERS

Recognize the needs of people and encourage them to pursue personal goals that are compatible with those of the business

Reward employees appropriately

Demonstrate that their work is meaningful and worthwhile

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FACILITATING COMMUNICATIONFACILITATING COMMUNICATION

It is the role of a leader to make sure that lines of communication are working efficiently

Good leaders are good listeners!

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FACILITATING FACILITATING COMMUNICATIONCOMMUNICATION

Effective communication is vital

• Written messages via email, letters, proposals, reports, contract documents, etc.

• Spoken communication during meetings

• Verbal communication should be clear and concise

• Body language

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RESOLVING CONFLICTSRESOLVING CONFLICTS

Conflict may be treated as an obstacle or as an opportunity

Managers are often mediators, listening to both sides and communicating understanding

Leaders use sensitive and effective communication skills to resolve conflicts

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MANAGING PERSONAL STRESSMANAGING PERSONAL STRESS

Balancing commitment to ventures with need to find time with family, friends, and personal endeavours may lead to physical and emotional stress

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KINDS OF STRESS

Two kinds of stress:• distress—the negative effect we often

associate with the word “stress”

• eustress—the good stress caused by excitement. This is what drives many entrepreneurs.

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Managing the Entrepreneur’s Personal Stress

Take care of yourself• eat right, get enough sleep, exercise

Respect the personal needs of your employees and they will respect yoursInvolve your family in your venture by inviting them to help outAvoid relying on a new venture for all your personal financial needs