1.4.5

Question 1

What is leadership in a business context?

Answer 1

Leadership is the way in which one person influences the behaviour or actions of others, often to achieve business goals.

Question 2

How has the role of leadership changed in modern business?

Answer 2

Leadership is no longer just about command and control. Now it includes:

Inspiring employees

Creating a vision for the business

Shaping core values and company culture

Building and leading effective teams

Question 3

Why is leadership increasingly important in modern business?

Answer 3

1. Changing Organisational Structure
   Flatter hierarchies
   More delegation
   Teamwork and quality focus
   Empowerment and coaching
2. Rapid Change
   Constant business change (e.g. tech, markets)
   Greater need for soft skills (communication, empathy, adaptability)

Question 4

How do leaders differ from managers?

Answer 4

Leaders:
Set direction and strategy
Inspire and influence
Build relationships
Take Risks
Have followers

Manangers:
Implement strategy
Organise and coordinate
use authority to take decisions
manage risks
have subordinates

Question 5

What are the three levels of management?

Answer 5

1. Senior Management
   E.g. CEO, Board of Directors
   Set corporate objectives and long-term strategy
   Accountable to shareholders
2. Middle Management
   Heads of departments, regional managers
   Run business functions
   Report to senior management
3. Junior Management
   Team leaders, supervisors
   Handle day-to-day tasks and monitor staff
   Report to middle management

Question 6

What is meant by a leadership style?

Answer 6

It’s the manner and approach of providing direction, implementing plans, and motivating people.

Question 7

What are the 4 traditional leadership styles?

Answer 7

Authoritarian (Autocratic)

Paternalistic

Democratic

Laissez-faire

Question 8

What is autocratic leadership?

Answer 8

A leadership style where decisions are made solely by the leader, with little or no employee input.

Question 9

Give two advantages of autocratic leadership.

Answer 9

Fast decision-making; clear instructions and expectations.

Question 10

Give two disadvantages of autocratic leadership.

Answer 10

Low employee motivation; limited creativity and innovation.

Question 11

What is paternalistic leadership?

Answer 11

A leadership style where the leader makes decisions but shows genuine concern for employees’ welfare.

Question 12

Give two advantages of paternalistic leadership.

Answer 12

Can create high morale; employees feel cared for and protected.

Question 13

Give two disadvantages of paternalistic leadership.

Answer 13

Can feel patronising; employees may lack independence.

Question 14

What is democratic leadership?

Answer 14

A participative leadership style where employees are involved in decision-making.

Question 15

Give two advantages of democratic leadership.

Answer 15

Higher commitment to decisions; more innovative ideas from diverse input.

Question 16

Give two disadvantages of democratic leadership.

Answer 16

Slower decision-making; unclear accountability.

Question 17

What is laissez-faire leadership?

Answer 17

A hands-off leadership style where employees are given maximum freedom to decide how they work.

Question 18

Give two advantages of laissez-faire leadership.

Answer 18

Encourages creativity; allows expert employees to work independently.

Question 19

Give two disadvantages of laissez-faire leadership.

Answer 19

Lack of direction; uneven performance across teams.

Question 20

Define management.

Answer 20

The art of getting things done through people