Managerial Leadership - Introduction To Business - ثاني ثانوي

6.2 Managerial Leadership Link to digital lesson www.ien.edu.sa Learning Outcomes Once you have completed this lesson, you should be able to: 6.2.1 Describe the need for leadership skills and the characteristics of an effective leader. 6.2.2 Identify the human relations skills needed by managers and leaders. 6.2.3 Recognize four types of leadership influence. Key Terms Leadership Human Relations Informal Influence Formal Influence Influence Focus on REAL LIFE The committee for a business leadership award in Dammam is meeting to identify possible nominees for the award. Asma offered the first suggestion, "We should find out which businesses showed the greatest growth and profits during the past year and each company's top manager should be nominated." "I think there is more to leadership than being the top manager of a profitable company. There are other things that demonstrate outstanding leadership," Abdullah offered. "We shouldn't limit it to the top manager. I believe the managers who work with employees every day are at least as responsible for a company's success as the top manager," Ali pointed out. Najma asked, "Does the award have to go to a manager? Many employees provide outstanding leadership within their organizations." Asma looked around the table and said, "Before we go any further, it looks like we need to agree on what leadership is." LO 6.2.1 WHAT IS LEADERSHIP? A business uses many resources to accomplish its work and make a profit. Those resources include buildings, equipment, money, materials, supplies, and people. The ability to manage resources, including people, is critical to the success of any business. Some managers are effective at managing other resources but not as good at managing people. Because employees are so important, managers who can effectively manage people are in high demand. Need for Leadership Ideas about the effective management of people have changed around the world in recent years. In the past, it was acceptable for managers to decide what needed to be done and how it was to be done without consulting the people who would be asked to do the work. Employees were expected to do what they were told. Although workers might have done what was asked of them, they might not have been doing their best. Most businesses cannot afford to have employees who are not doing their best. The cost of hiring, training, and paying employees ⚫is usually one of the largest expenses for a business. Employees who Think of an organization or group in which you have been involved. Do you feel there was effective leadership? Why or why not? 6.2 Managerial Leadership | 191 وزارة التعليم Ministry of Education 2024-1446 GE44.PATHWAYS.G02.ITB.SB.PP1.indb 191 08/05/2024 09:14

Life-Span Plan Identify and evaluate your own leadership abilities. List things you have done and activities you have completed that you believe contribute to your leadership skills. Explain how your leadership skills may affect the life-span goals you set for yourself. Identify possible leadership roles in your school and community that can help you achieve your life-span goals. do not feel their contributions are valued may not perform well. They might not produce the quantity or quality of work that is required. Other employees who do not feel appreciated might look for other jobs. Companies pay a high cost for these kinds of problems. Today, managers are expected to do more than just give orders. They are expected to find ways to meet employee needs as well as business needs. Managers must be effective leaders. Leadership is the ability to motivate individuals and groups to accomplish important goals. When a manager can get individual employees and groups to work well together to accomplish objectives, she or he is an effective leader. A range of organizations and initiatives have been established in Saudi Arabia to promote strong leadership and to support the goals of Saudi Vision 2030. These include: The Misk Foundation has established 2030 Leaders, a leadership development program designed to identify and nurture the inspiring individuals who will help to implement Saudi Vision 2030. Applicants must be Saudi nationals with over ten years' experience in the public or private sector, five years' senior leadership experience, and fluent in English (https://misk.org.sa/leaders2030/). The Leaders Development Institute is an organization with a similar aim, focussed specifically in the sports sector. LDI is using initiatives including educational and training programs to create champions, as part of Saudi Arabia's transformation towards becoming a top sporting nation (https://ldi.sa/en). The King Abdulaziz Quality Award promotes quality of performance in business. The award "is a way to achieve excellence in business by providing an integrated structure to coordinate all performance improvement and management activities" (https://kaqa.org.sa/ en/Pages/default.aspx). Leadership Characteristics Leadership is much more than just being friendly with employees. It takes skill to get people with different characteristics, needs, and interests to work well together and do the work needed by the business. The characteristics of effective leaders are listed and described in Figure 6-4. There is an expression that states: “Leaders are born and not made.” However, most leaders will say that they did not always have the characteristics needed for success. Rather, they worked hard over many years to develop them. The following section provides practical advice for honing leadership skills. 192 Chapter 6 | Management and Leadership Ministry of Education 2024-1446

CHARACTERISTICS OF EFFECTIVE LEADERS CHARACTERISTIC Understanding Initiative Dependability Judgment Objectivity Confidence Stability Cooperation Honesty Courage Communication Intelligence DESCRIPTION Respecting the feelings and needs of the people they work with. Having the ambition and motivation to get work done without being asked. Following through on commitments. Making decisions carefully. Looking at all sides of an issue before making a decision. Being willing to make decisions and take responsibility for the results. Not being too emotional or unpredictable. Working well with others, recognizing others' strengths, and helping to develop effective group relationships. Being honest and sincere in decision making and treatment of others. Willing to take reasonable risks and make unpopular decisions. Able to listen, speak, and write effectively. Having the knowledge and understanding needed to perform well. Identify people who you believe have most of these leadership characteristics. How do they demonstrate their leadership? FIGURE 6-4 Leadership Characteristics Preparing to Be a Leader You will have many opportunities to be a leader even if you are not a manager. Don't wait until you find yourself in a leadership role to develop leadership skills. There are several ways you can develop them right now, as shown in Figure 6-5, including: • Study leadership. Books, videos, and blogs on the subject of leadership and leadership skills can help you understand what it takes to be a leader. You can also take courses to develop specific leadership skills. • Participate in organizations and activities. Clubs, teams, and organizations need leaders and offer a variety of opportunities to develop leadership skills. Practice leadership at work. If you have a part-time job, you can develop leadership skills as you help customers, complete work assignments, take initiative to solve problems, and demonstrate dependability and honesty. Observe leaders. Every day you can observe people in leadership positions in your school and community. You also can see and read reports about people in leadership positions in business and government. Join in organizations and activities Study leadership Do a self-analysis and ask for feedback Preparing to be a leader Practice leadership at school or work Observe leaders Work with a mentor In what other ways can you develop useful leadership qualities? FIGURE 6-5 Preparing to be a Leader Work with a mentor. An older sibling, a trusted adult, or a teacher may be willing to help you learn more about leadership skills and offer guidance and feedback on your progress. Do a self-analysis and ask for feedback. Find opportunities to demonstrate leadership characteristics. Review the results to identify what you did well and what you can improve. Ask others for constructive feedback. وزارة التعليم Ministry of Education 2024-1446 CHECKPOINT What are the key characteristics of effective leaders? 6.2 Managerial Leadership | 193

LO 6.2.2 IMPORTANCE OF HUMAN RELATIONS Managers and leaders must be able to work well with other people. Most managers spend a majority of their time interacting with people. They work with employees, customers, people from other businesses, and other managers in their own organizations. The ability to get along with other people largely determines whether a manager is successful or not. Human relations is the way people get along with each other. Which leadership qualities do you possess? Which qualities do you most need to develop? Are there others that you think you could develop? Human Relations Skills Effective managers and leaders must develop and maintain effective relationships with all of the people with whom they work. In addition, they must help employees develop effective human relations skills. The important human relations skills needed by leaders and managers are (1) self-understanding, (2) understanding others, (3) communication, (4) team building, and (5) developing job satisfaction. Self-Understanding To be able to meet the expectations of others, leaders must first understand their own strengths and weaknesses. A manager cannot always do exactly what employees would prefer or make decisions with which every employee agrees. In addition, a manager cannot be viewed as either unpredictable or unfair. To gain a better understanding of yourself, you can study how you get along with others. Try to recognize the ways you communicate and work with others individually and in groups. It is important to recognize how you make decisions. You must learn which decisions were effective and which were not so you can improve your decision- making ability over time. Understanding Others Leaders recognize that people they work with often are more alike than different. Recognizing those similarities will help develop a stronger team. Differences can also improve a work team. If everyone thought and acted the same, there would seldom be new ideas Work as a TEAM List the five human relations skills and rank them 1-5 in the order you believe is most important to effective leadership. Now compare your rankings with those of your team members. As a team, agree on a final ranking of the skills. When you are finished, discuss whether the process used to agree on rankings demonstrated effective human relations skills among team members or not. or anyone to question a decision in order to improve it. An effective leader gets to know each person's skills and abilities as well as strengths and weaknesses. The leader will not treat everyone alike, but will attempt to involve each person in the way that is most beneficial to the business and that employee. 194 Chapter 6 | Management and Leadership Ministry of Education 2024-1446

of every part Communication Communication is an essential business. Managers must have effective communication skills. Communication can be classified as: Formal or informal Formal communications methods are the established and approved ways for information to move between managers, employees, customers, and others in the business. Informal communications are commonly used but unofficial ways that information moves in an organization. Internal or external Internal communications occur between managers, employees, and work groups. External communications occur between people inside the organization and people outside the organization such as customers, suppliers, and other businesses. Use of a letterhead on external business communication helps create What might happen if a business loses communications, computer, and Internet services for a day? a professional image. It should contain the company name and contact information. Business cards for employees who have external contacts should contain the business name as well as the employee's name, title, and contact information. Vertical or horizontal Vertical communications move up or down in an organization between management and employees. Horizontal communications move across the organization at the same level-employee to employee or manager to manager. Oral or written Oral communications are spoken directly or using technology. Written communications include notes, letters, reports, and text or graphics. Managers need to recognize and effectively use many methods of communication. The message must include specific words that are understandable and meaningful to the people receiving the communications. An effective communicator must be a good listener as well as skilled at providing information. Listening helps managers understand employees and demonstrate respect for their ideas. Team Building Businesses are organized into groups and teams. The combined skills of the people in an effective team are greater than those of individuals working alone. On the other hand, if there are problems in the team and members cannot get along, the team will not be effective. Managers and leaders need team-building skills to help people understand each other and their responsibilities. A leader must be able to identify problems developing within the group and help resolve them quickly. Developing Job Satisfaction Most people are more satisfied than dissatisfied with their work when they have jobs that use their skills and interests. Managers can influence how employees feel about their jobs on a daily basis. Sources of dissatisfaction include assignments employees do not like, difficult working conditions, ineffective communication, and lack of recognition or adequate rewards. A small concern that is unresolved can lead to long-term dissatisfaction. Employees appreciate it when a manager pays attention to the needs and concerns of individual employees, even if problems cannot be immediately resolved. CHECKPOINT Why do managers and leaders need effective human relations skills? وزارة التعليم Ministry of Education 2024-1446 6.2 Managerial Leadership | 195

Business Insight Responsibilities of the Next Generation's Leaders At the beginning of this lesson, we introduced Khalaf, who hopes one day to take over the family business and "be the boss." The following preparations should be taken by all prospective future leaders of the family enterprise who expect to advance to executive positions. 1. Be open to communication. The succeeding generation should understand the values that led to the creation and growth of the family enterprise and to its current mission. If they believe change is necessary, their actions should result from conscious decisions. They should seek to be fully informed about the history and direction of the company. 2. Develop a personal action plan. At this stage, prospective successors should seriously assess whether they have addressed the following questions: Who am I? What are my core values? What are the most important areas of my personal and professional life that I should work on? 3. Implement the personal action plan. This involves pursuing relevant education, training, and experience. Actions should lead to the establishment of personal credibility and marketability. The younger generation should not be joining the family business simply because they lack alternatives. 4. Prepare for ownership. Future leaders need to develop basic management skills, such as the ability to comprehend financial statements and to effectively supervise employees. They must grasp the role of a board of directors in terms of its relationship to the management team of the firm. And they need to understand the relationship between the business and the family. 5. Design life plans. Life plans are for both the individual and the business. What should the résumé of the family company CEO look like in 5 or 10 years? A key responsibility of members of the younger generation is to keep in mind that they are not entitled to a leadership position. Such positions need to be earned. Think Critically 1. Do all of the preparations suggested above only apply to succession in family businesses? Give reasons for your answer. 2. A core objective of Saudi Vision 2030 is to inspire and educate the leaders of tomorrow. Research and describe other ways in which you can prepare to become an effective manager or leader. 196 Chapter 6 | Management and Leadership Ministry of Education 2024-1446

LO 6.2.3 INFLUENCING PEOPLE Have you been a part of a group that often disagrees on how things should be done and takes a long time making decisions? If the group is not working well, leaders may complain and criticize group members. Others may give up on the group and attempt to do the work themselves. Neither of those responses improves the group's effectiveness. Effective leaders must be able to influence team members and others in positive ways. Influence enables a person to affect the actions of others. Kinds of Influence There are several kinds of influence a leader may be able to use (see Figure 6-6). Identity influence Position influence Reward influence Expert influence Use of authority Use of praise / criticism, and rewards Use of expertise Use of trust and experience and respect Which kinds of influence do you think you could utilize as a leader? FIGURE 6-6 Types of Leadership Influence Position influence is the ability to get others to accomplish tasks because of the position the leader holds. If the leader is a manager with authority over an employee, it is likely that the employee will feel obligated to respond to the leader's requests. Reward influence results from the leader's ability to give or withhold rewards. Rewards may be monetary, such as wages or job benefits. Rewards can also be non-monetary, such as recognition and praise. Rewards are usually positive. Negative rewards include requiring people to work overtime on short notice or criticizing rather than praising employees. Expert influence exists when group members recognize and appreciate a leader's expertise in a specific area. For example, a group of inexperienced sales representatives with a manager who has years of successful selling experience will likely look to the manager for guidance. Identity influence stems from the personal trust and respect members have for the leader. If the leader is well liked and appears to have the best interests of the group mind, members are likely to support the leader. in The influence of leaders is not always positive. It may not be effective for a long period. If a manager is not viewed as an expert and is not well liked, he or she will have to rely on position and reward influence. It is not easy to continue to get people to do things for you just because you are their manager. They will probably do just enough to get by, get a reward, or avoid punishment. Effective leaders work to develop expert and identity influence to gain the respect and support of the group. وزارة التعليم Think of a manager or teacher you've enjoyed working with. What characteristics made it easy to follow his or her lead? 6.2 Managerial Leadership | 197 Ministry of Education 2024-1446

Formal and Informal Influence Groups can be affected by both formal and informal influence. It depends on the person's role within the organization. Managers have formal influence. Others can have informal influence as a result of their personal characteristics rather than their role in the organization. What happens when your teacher assigns a group project and the team members get together for the first time? Often, one or two people emerge as leaders to help get the group focussed and organized using informal influence. Informal influence is power resulting from the personal characteristics of a leader rather than the formal structure of an organization. Consider another situation where members of a council or organization elect leaders. Formal influence is power based on a leader's position within the formal structure of an organization. Often in organizations, both formal and informal influence will operate at the same time. One person will be the manager and have formal influence. There may be a well-liked and respected employee in the group who will have informal influence. If there is a conflict between the formal and informal influence, the group will probably not work effectively. Group members will have difficulty deciding whose influence to follow. Effective managers recognize informal influence and work closely with the informal leaders to gain their support and avoid conflicts. CHECKPOINT What is the difference between formal and informal influence? 6.2 ASSESSMENT Key Concepts Determine the best answer. 1. The ability to motivate individuals and groups to accomplish important goals is a. influence b. power c. management d. leadership 2. True or False. Research has proven that effective leaders are born and not made. 3. The way people get along with each other is known as a. human relations b. influence c. management style d. communications 4. A person who is not a manager but is still able to get a group focussed and organized is using a. authoritative management b. delegative management c. formal influence d. informal influence 198 Chapter 6 | Management and Leadership Ministry of Education 2024-1446

Make Academic Connections 5. Technology Virtual teams complete projects by communicating using technology rather than meeting face to face. Complete Internet research on virtual teams. Prepare a report that describes a business project completed by a virtual team. Discuss how technology was used to support communication among team members and achieve successful completion of the project. 6. Communication You are the supervisor of a new employee who is having difficulty completing some tasks. You believe the new employee may be reluctant to ask questions of experienced employees. You encourage your employees to help each other when asked. You want to meet with the new employee to discuss the situation and want the discussion to be positive and result in improved performance. Role-play the discussion with another student using effective oral communication. Use the space below to jot down your notes. 7. Math A survey of one company's employees asked them to identify which type of influence their managers used most often. Seven hundred employees responded with the following results: Position influence, 305 responses; reward influence, 80 responses; expert influence, 120 responses; identity influence, 195 responses. Prepare a chart that illustrates the percentage of managers using each of the types of influence most frequently. وزارة التعليم Ministry of Education 2024-1446 6.2 Managerial Leadership | 199

MANAGEMENT AND LEADERSHIP IN DELIVERING SAUDI VISION 2030 The notion of leadership is often associated with courageous individuals, who make tough decisions and inspire others. Yet, as Saudi Vision 2030 highlights, leadership can also be demonstrated by collective organizations, and even entire nations comprising millions of citizens! King Salman Bin Abdulaziz Al-Saud has said, "My primary goal is to be an exemplary and leading nation in all aspects, and I will work with you in achieving this endeavour." While leadership ultimately comes from the top down, the King's message reinforces the idea of a collective effort and responsibility to show leadership qualities as a nation. Elsewhere, Saudi Vision 2030 states that: "our real wealth lies in the ambition of our people and the potential of our younger generation." Characteristics of leadership can be applied at every level of command, through shared ambitions and motivating others to work together to achieve the same aims. As this chapter highlights, leadership and management are connected functions that work closely together. However, each is characterized by a distinct focus, as can be illustrated through the example of Saudi Vision 2030. Leadership presents the overarching vision, identifies the challenges ahead and sets out a path to follow. Meanwhile, management is tasked with implementation: the day-to-day realities of putting these plans into action. A range of initiatives known as Vision Realization Programs (VRPs) have been established in order to accomplish the goals of Saudi Vision 2030. These include the Public Investment Fund Program, Housing Program, Human Capability Development Program and the Privatization Program, among others. Each VPR has been appointed a board of executives and advisors, drafted from a range of disciplines, tasked with overseeing the process of implementing the program. Thinking Critically 1. Do you think that everybody can be a leader? Give reasons for your answer. 2. Visit the Saudi Vision 2030 website, research one of the Vision Realization Programs (VRPs), and summarize its key goals. 3. Now look at the leadership team appointed to this or another VPR. Look at the titles and specialisms of individual members of the board and suggest how their experience or specialism might be valuable in realizing the program's goals. 200 Chapter 6 | Management and Leadership y of Fron