HNB404 Leadership and Management

Introduction (HNB404 Leadership and Management)

Leadership and management play a crucial role in an organization because leaders are guiding employees on how to work. Managers are handling all the activities and making plans so that the goals and objectives of the company can be achieved. It is important to apply the correct leadership style in an organization so that work can be completed on time (Bush 2019). Penrhyn is an international executive company that is technology-driven and provides good quality products to customers. The report will examine leadership and management theories. Different styles of leadership and management approaches are described. The importance of culture and the role of leader and manager will be discussed.

Leadership theories

There are different types of leadership theories that can be applied by an organization so that it can perform better than others. It helps in achieving the goals and objectives of the company. Leadership theories are:

  • Contingency theory– This theory supposes that a leaser can work in any situation or not. According to this theory, a leader can be effective and work efficiently in any situation to achieve the goals and objectives of the company. This theory provides a realistic view of management and organization (Zafar and Mehmood, 2019). Leaders are making plans innovatively and creatively which is beneficial for the growth of the company. This theory allows leaders to use different styles so that employees can work effectively.
  • Trait theory of leadership– According to this theory, some inborn and other skills make a good leader. It includes other factors like personality, physical, intelligence factors so that targets can be achieved. This theory helps the organization in performing better than others and they can achieve targets. Leaders are responsible for guiding employees and motivating them to work effectively (De Oliveira et. al. 2019).
  • Transformational leadership theory– In this theory leaders are working with teams and identifying changes that are required. This theory provides a vision and direction to employees so that goals and objectives can be achieved. An organization needs to apply leadership theories because it helps in achieving targets and performing better than others. Transformational leadership helps in lowering costs and engaging employees to work efficiently. Transformational leaders are managing all the work and make plans which is beneficial for the growth of the company.

Management theories

There are some management theories which an organization can apply to complete their work on time and to achieve the target. The manager of Penrhyn should apply some theories to manage work properly and to guide employees so that they can work effectively and efficiently.

Scientific management theory– According to this management theory workflow is analyzed and plans are made to improve efficiency. This management theory helps in the reduction of cost of production, better quality products are provided to the customer, wages are increased. This is beneficial for a manager because they can handle and manage all the activities. This helps in achieving the goals and objectives of the company.

Encouraging staff participation– Another management theory is encouraging staff members to work efficiently and focus on achieving goals and objectives. It is the responsibility of managers to motivate employees by satisfying their needs and providing them good working environment so that they can focus on their work and complete work on time (Ding et. al. 2019). Encouraging employees increase the overall productivity of the company and more revenue can be generated.

System management theory– This theory is an alternative approach that helps in the planning and management of the organization. It is important to make plans properly so that goals and objectives can be accomplished. This theory provides a holistic view of an organization and makes changes as per the need of a customer. System management theory is important because it helps in making better plans and employees can work accordingly. It is essential to make plans and strategies after analyzing the market situation so that the targets of the company can be achieved.

Different styles of leadership

There are different types of leadership styles which an organization can apply so that work can be completed on time and to avoid confusion.

HNB404 Leadership and ManagementFigure 1 leadership style (Source: Schneider, 2015)

Autocratic- In this leadership style only leaders are having a right to take the decision. Leaders are instructing employees and they have to work accordingly. Managers of Penrhyn company can apply this style because it helps in taking quick decisions. There is a clear chain of command. This helps in improving the productivity of the company and better services can be provided to the customer. In this leadership style, team members are not having any rights and they have to work as per the instruction given. A leader is not taking suggestions from employees and did not involve them in the decision-making process (Golensky and Hager, 2020).

Democratic- In the democratic leadership style all the members are having the right to share their views and they are also having the right to decide in the absence of the leader. In this leadership, style the leader is making plans and giving guidance to employees. This style of leadership is beneficial because it helps in building team relationships, increases morale and job satisfaction of employees. All the members are working properly and focus on achieving targets. A strong and clear vision is built with the help of a democratic leadership style. In Penrhyn company, this leadership style can be applied so that employees can give new and innovative ideas which are beneficial for the growth and development of the company.

Laissez-faire– In this leadership style all the team members are free to give suggestions and ideas for improvement so that they can perform better than others and it helps in achieving the goals and objectives of the company (Nayani et. al. 2018). This encourages employees and they work efficiently. It encourages innovation because employees are having innovative ideas and it will lead to the growth of the firm. This style can be applied to medium-size businesses so that they can make better plans.

Transactional leadership- This leadership style is also known as managerial leadership and leaders give rewards to a member who is performing well and punishment to a member who did not perform well. The leader is measuring the performance of all the team members and gives rewards accordingly. In Penrhyn company, the leader is setting the target for every member and after completing the work performance is being measured so that improvement can be made.

Different leadership and management approaches

Leadership approaches are:

Transformational leadership- This leadership approach defines a change in the individual after applying the leadership style. Leaders are responsible for providing correct direction to employees so that they can work properly and there will be no confusion. This approach helps in engaging employees, improving communication, solving problems, and encouraging employees to learn new things. It is essential to apply a leadership approach so that goals and objectives can be achieved.

Participatory leadership– According to this leadership approach, all members in the organization are taking decisions together and working as a team to achieve the target. A leader is encouraging members to participate and work together so that tasks can be completed on time and this is beneficial for the growth of the firm.

Situational leadership– Situational leadership means applying leadership and management style as per the situation or task to achieve the target. This approach works on assumption and it changes from situation to situation. It is important to apply style as per situation to satisfy the need of employees and to motivate them to work efficiently. Nowadays, attracting people to social media platforms is the best way because people are more active on social sites (Sobratee and Bodhanya, 2018).

Some management approaches are:

Human relation approach- This approach of management is based on the idea that to motivate employees financial reward is the best way. All the employees want rewards and this boosts their confidence. Every employee wants some benefits and this satisfies their needs. The human relation approach helps in motivating employees and building teamwork.

Classical approach – This is one of the oldest approaches to management because it focuses on increasing the efficiency and productivity of employees. This approach focuses on motivating employees and boosting their morale so that they can work efficiently. The classical approach can be applied by Penrhyn company to manage all the work and boost the confidence of employees.

Leader and manager

A leader is a person who is having all the essential skills and having the ability to influence other people. Managers are dividing work in a team and making a leader who can guide and provide correct direction to employees so that they can work effectively and efficiently. A leader is responsible for training new workers and providing direction so that work can be completed on time. They are also making structure through which proper communication can be done and thus reduce chances of confusion or misunderstanding. A leader is encouraging the team and motivating them to work together to achieve the target. They are listening to the problem of employees and resolve conflicts. A leader is making plans and strategies after analysing the positive and negative points of every employee so that target can be achieved (Sahban, 2019).

The manager plays a crucial role in an organization because they are handling all the activities and managing all the work properly. The manager is hiring and selecting the right person for the right position, providing training to new employees so that they can work efficiently and it reduces the chances of mistakes. The manager is responsible for providing a good working environment to employees and giving them rewards to motivate them. Managers perform four functions i.e., planning, organizing, leading, and controlling. They are evaluating the performance of employees and arranging development programs to improve the performance of employees. In Penrhyn company, managers are making plans to achieve targets and to gain a competitive advantage in the market. The manager is handling all the activities and controlling all employees properly to avoid chances of mistakes and changes can be made if required. A manager is deciding to analyse positive and negative impacts. When plans are made properly by the manager then results are good.

Hard and soft skills

Hard skills refer to specific abilities that a person should have so that they can focus on their work and perform better than others. In an organization, a manager is recruiting candidates who is having the skills to work efficiently (Harris and Jones, 2018). Hard skills include technical skills, analytical, marketing, presentation, management skill. These are some skills which a leader must have and provide direction to employees to accomplish the target. Soft skills are the group of personality traits like communication skills, language skills, and personal habits. Soft skill is beneficial because in an organization members have to work in a team or as a group to complete work on time. Soft skills include leadership, teamwork, communication, problem-solving skill, interpersonal skill. All these skills help employees to complete the given work on time. Soft skills increased productivity and build strong teamwork. It reduces turnover and helps in improving the morale of employees. When employees are having the necessary skills then it becomes easy to work because they know how to work. In Penrhyn company, managers are recruiting employees who is having soft and hard skills.

Importance of culture and role of leader

Culture is important in an organization because employees want a good working environment and it improves learning. The important part of culture is values and beliefs. In Penrhyn, the structure is made by the manager in which roles and responsibilities of every member are mentioned to avoid confusion and all employees are knowing what work they have to do. Organizational culture helps in improving workflow and a quick decision can be taken. Culture defines the way to behave in the company and follow rules. Values and beliefs play a vital role in an organization as it boosts the confidence of employees and they focus on their work. A leader is making values and beliefs and communicating them to team members so that they can work accordingly. The leader is responsible for influencing other members and boosting their morale to complete a task. Having a proper culture in the organization creates a positive image and promotes an organized work structure (Hallinger, 2020). Managers are making rules and regulations which are to be followed by everyone and it creates a good working environment at the workplace. Culture is shared values and beliefs that the company is following. In Penrhyn company, leaders are making structure, values, and beliefs to improve teamwork and helps in increasing productivity. When a culture of a company is good then it leads to an increase in the overall performance of the firm and the target can be accomplished.

Impact of leadership and management

According to my opinion, social media is the best way to attract people and employees because nowadays, people are more active on social sites. It is difficult for me to handle all employees because they are from a different culture. I face many issues and challenges while working as a leader but with the help of my communication skill I can manage all the work and influence my team members to work efficiently (Delanoy and Kasztelnik, 2020). Leadership has positive as well as negative impacts on organizational performance like increasing sales, revenue, and turnover of firm. The negative impact of leadership is low morale and decreased ability to achieve success. Management is also having a positive impact on the performance of the organization like work is completed on time, increase the profit of the firm, manage all the activities, the target is achieved. The negative impact of management on organizational performance is work is not finished on time and this will lead to a bad image of the company in the market. When managers are not able to control work then it creates confusion among employees and the target is not accomplished.


From the above discussion, it can be concluded that leadership and management play a vital role in an organization. Leadership and management theories like contingency, trait, encourage staff participation have been described. Different leadership and management approaches have been discussed. Further, the role of leader and manager on organizational culture and performance has been described.


Books and Journals

Bush, T., Bell, L. and Middlewood, D. eds., (2019). Principles of educational leadership & management. Sage.

De Oliveira, L. B., Cavazotte, F. and Alan Dunzer, R., (2019). The interactive effects of organizational and leadership career management support on job satisfaction and turnover intention. The International Journal of Human Resource Management. 30(10). pp.1583-1603.

Delanoy, N. and Kasztelnik, K., (2020). Business Open Big Data Analytics to Support Innovative Leadership and Management Decision in Canada. Business Ethics and Leadership. 4(2). pp.56-74.

Ding, W., Choi, E. and Aoyama, A., (2019). Relational study of wise (phronetic) leadership, knowledge management capability, and innovation performance. Asia Pacific Management Review. 24(4). pp.310-317.

Golensky, M. and Hager, M., (2020). Strategic leadership and management in nonprofit organizations: Theory and practice. Oxford University Press.

Hallinger, P., (2020). Science mapping the knowledge base on educational leadership and management from the emerging regions of Asia, Africa and Latin America, 1965–2018. Educational Management Administration & Leadership. 48(2). pp.209-230.

Harris, A. and Jones, M., (2018). The dark side of leadership and management.

Nayani, R. J., Nielsen, K., Daniels, K., Donaldson-Feilder, E. J. and Lewis, R. C., (2018). Out of sight and out of mind? A literature review of occupational safety and health leadership and management of distributed workers. Work & Stress. 32(2). pp.124-146.

Sahban, M. A., (2019). The transformational leadership, knowledge management and perceived organizational support in predicting innovation capability. Polish Journal of Management Studies20.

Sobratee, N. and Bodhanya, S., (2018). Leading in a global context: The balancing act between leadership and management. Journal of Business and Retail Management Research. 12(4).

Zafar, H. and Mehmood, K. K., (2019). Innovation as a mediator between innovative culture, transformational leadership, knowledge management, learning orientation, and performance. Innovation. 17(1).

Schneider, G., 2015. WHAT IS YOUR LEADERSHIP STYLE? [Online]. [Assessed through]:<>

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