Leading is the process of influencing staff to work towards the achievement of the organisation’s objectives. The key management role of leading in particular involves the use of the skills of Communication, Negotiation and Motivation. Effective leadership involves and uses the personal attributes of the managers such as self-discipline and respect for others.

Leadership and Power

For a manager to act as an effective leader, it is necessary that they have some power to influence the employees.

Power can be in the form of:

  1. Legitimate Power which is the power from the manager that is present due to the structure in place within the organisation
  2. Expert Power refers to the expert skills, knowledge and information, which is able to influence others.
  3. Reward or Coercive Power, which is the power over employees to reward or punish.
  4. Referent Power refers to being liked and respected by subordinates, peers and supervisors and therefore having an influence over them.

Types of Leaders

Transactional Leader

A transactional leader tend to provide staff with rewards in return for compliance and acceptance of authority. Possible incentives provided include pay rises, which are given based on whether or not the performance goals of the organisation were met by the employees.

Transformational Leader

A transformational leader is more commonly seen today. This type of leader involves inspiring staff with the Vision of the organisation, to ensure they are committed to achieving the organisation’s objectives. They tend to consider each employee of the organisation as an individual rather than a collective group, whilst also providing opportunities for team members to exercise their own judgments on decisions. To be an effective Transformational Leader it is necessary to display these skills:

  • Interpersonal Skills which involves leading though understanding the needs and feelings of employees.
  • Informational Skills referring to leading through providing information to employees.
  • Decision-Making Skills which involves leading through being able to make a decision when necessary.