MGT3002

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Week4Notes1.pdf

Leadership, Traits and Styles

Many people equate leadership with management. Some even use the two terms "manager" and

"leader" interchangeably.

However, leadership actually deals with developing strategies of change and creating new systems and

organizations as well as instituting revolutionary change within existing systems and organizations. Management deals with the day-to-day, month-to-month, and year-to-year functioning

of systems and organizations.

"What makes a good leader?" Until the 1940s, researchers tried to answer this question by identifying

the qualities and characteristics that are necessary for effective leadership. These �ndings and

conclusions are referred to as the trait theories of leadership. According to these theories,

personality, social status, physical characteristics, and intelligence are all factors that contribute to good leadership. In addition, some studies of physical characteristics actually focused on physical size

to determine whether this was an important factor.

From the �ndings and conclusions of the Ohio State University and Michigan State University studies,

Robert Blake and Jane Mouton developed the well-known "Managerial Grid" to show the relationship

between two leadership styles. They called these styles "Concern for People" and "Concern for

Production."

The four fundamental factors of production are land, labor, capital and entrepreneurship. The �nal factor belies the vital importance of leadership in business settings. Leadership acts as the catalyst

that makes all other elements work together; without leadership, all other business resources lie

dormant. Savvy business leaders are in tune with the needs and issues of their subordinates, and keep

up to date on new developments in leadership theory and methodology to maximize their

effectiveness.

Additional Materials

Leadership, Traits and Behavior, Leadership Styles

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