Define the term ‘leadership’.
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Exam code: 9609
Define the term ‘leadership’.
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Beechwood Dental (BD)
Beechwood Dental (BD) operates 18 dental practices in country T, employing 62 dentists and 140 support staff.
BD's clinical director, Farah, is a dentist of thirty years' experience who has published widely on modern treatment methods. She is not a member of the board and cannot dismiss or promote anyone.
BD wants all practices to adopt a new patient record system. Farah has demonstrated the system at each practice and explained how it reduces the time spent writing notes.
Fourteen of the 18 practices adopted the system within a month of her visit.
Explain one source of power Farah uses to influence BD's dentists.
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Explain one reason why emotional intelligence is an important quality of an effective business leader.
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Define the term 'trait theory'.
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Wrenfield (WF)
Wrenfield (WF) publishes school textbooks in country M and employs 140 people.
WF's editorial team of 45 works on long projects, often taking two years to develop a textbook. Editors are highly qualified and expect to make their own decisions about content.
WF's production department of 30 works to fixed printing dates. If a file misses its slot at the printer, the whole print run is delayed by up to six weeks.
WF's new managing director previously ran a factory and intends to apply the same close, directive management style to both departments.
Explain one implication of contingency theory for WF's new managing director.
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Define the term 'behavioural theory' of leadership.
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Define the term 'transformational leadership'.
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Ashwell (AW)
Ashwell (AW) runs nine leisure centres in country J, employing 620 staff including swimming instructors, lifeguards, fitness coaches and reception teams.
Priya manages AW's largest centre. In a normal week she agrees the coming month's class timetable with her team, represents AW at a meeting of the local council's sports committee, and speaks to staff individually about their training and development.
Attendance at Priya's centre has risen 12% in a year, while attendance across AW's other eight centres has fallen slightly.
Explain one leadership role carried out by Priya.
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Define the term ‘emotional intelligence’.
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Explain one difference between trait theory and behavioural theory of leadership.
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Saltmere (SM)
Saltmere (SM) processes and packs seafood in country F. It employs 380 people at a single plant.
Falling fish stocks have forced SM to close one of its three production lines, ending 90 jobs. The plant manager, Dulce, told every affected worker personally before the announcement was made public, explained why the line was closing, and arranged for a local college to run free retraining courses on site.
Table 1.1: SM selected data
Employees before the closure | 380 |
Jobs ending | 90 |
Remaining employees saying they trust SM's management (%) | 71 |
Comparable figure at SM's main competitor after a similar closure (%) | 28 |
Absence rate among remaining staff since the announcement (%) | 4 |
Analyse two ways in which Dulce has shown emotional intelligence.
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Vantage Sports (VS)
Vantage Sports (VS) sells running and cycling equipment from 24 shops in country R and employs 310 people.
VS's founder retired last year. The board appointed Marek, previously a regional manager at a supermarket chain, as chief executive.
Marek has visited all 24 shops, set out a plan to add online sales, and publicly admitted that his first proposal, to close four smaller shops, was wrong after staff showed him data on local customers.
Table 1.1: VS selected data
Shops | 24 |
Employees | 310 |
Staff saying they understand VS's direction, before Marek (%) | 31 |
Staff saying they understand VS's direction, now (%) | 74 |
Managers who have left since Marek's appointment | 1 |
Analyse two qualities Marek has shown as a leader of VS.
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Fernvale (FV)
Fernvale (FV) manufactures pet food in country D. Founded eleven years ago by Otto, it has grown from 12 employees to 290 across two factories.
Otto still approves every recipe change, every supplier contract and every hire. He works the same way he did when FV had a dozen staff, describing his style as "being in the middle of everything".
Table 1.1: FV selected data
Employees | 290 |
Factories | 2 |
Decisions awaiting Otto's approval at any one time | 60 |
Average delay before a supplier contract is signed (weeks) | 5 |
Production managers who have left in two years | 4 |
FV's board has asked Otto to consider changing how he leads.
Analyse two implications of contingency theory for how Otto should lead FV.
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Bramwell (BR)
Bramwell (BR) manufactures optical instruments in country M, including microscopes and surveying equipment. It employs 540 people, many with more than twenty years' service.
Demand for BR's traditional instruments has fallen as customers switch to digital alternatives sold by overseas competitors.
BR's chief executive, Nadia, has set out a plan for BR to become a maker of digital imaging systems within five years. She has spoken at every department, explained why the change is necessary, and committed to retraining rather than replacing staff.
Table 1.1: BR selected data
Employees | 540 |
Revenue from traditional instruments, five years ago ($m) | 61 |
Revenue from traditional instruments now ($m) | 38 |
Staff volunteering for digital retraining in the first month | 210 |
Analyse two ways transformational leadership could help BR make this change.
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Kestrel Rail (KR)
Kestrel Rail (KR) operates regional train services in country B, employing 2,100 people including drivers, conductors and engineers.
KR's new operations director, Tomas, was appointed from outside the rail industry. He has the authority to change working practices and has issued an instruction changing how shifts are allocated.
Drivers are represented by a trade union that has recommended its members do not cooperate. Tomas has met the union twice but has not changed his instruction.
Table 1.1: KR selected data
Employees | 2,100 |
Drivers | 540 |
Drivers accepting the new shift arrangements (%) | 22 |
Trains cancelled last month because of staffing gaps | 148 |
Analyse two limitations of Tomas's power to influence KR's drivers.
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Discuss the importance of emotional intelligence to a manager of a luxury holiday resort.
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‘The business leaders and managers of a school must have a high level of emotional intelligence if they are to be successful.’
Discuss the extent to which you agree with this view.
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‘Good leaders are more important for business success than good managers.’
Discuss the extent to which you agree with this view.
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‘Effective business leaders need to be more emotionally intelligent than intellectually brilliant.’ Discuss this statement.
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