Practise IB Business Management SL/HL 2.3.2 by applying management and leadership concepts to exam-style questions.
Su prepared a six-monthly cash-flow forecast for AS. Su’s share capital and loans from HH financed the early project; sales, capital expenditure, sales costs and other costs affect cash balances. A cash-flow forecast helps AS anticipate cash shortages, plan finance and control spending. Su empowers managers at HH and AS to organize resources, direct staff, coordinate and take tactical decisions while she retains strategic responsibility. Leadership involves setting direction and inspiring people; management involves planning, organizing, coordinating and controlling resources and activities.
With reference to Su and her managers at HH and AS, explain the differences between leadership and management.
Su shows distinct leadership qualities. She:
- inspires
- sets missions
- takes responsibility for strategic decisions
- takes on the role of spokesperson
- delegates, advises, guides
- shows features of McGregor Theory Y.
Her managerial roles are somewhat limited but include organizing at a corporate level. Most of the management functions are delegated.
Managers, for example David and Salima, fulfil management functions including:
- making day-to-day decisions
- making tactical decisions
- organizing resources, directing, coordinating staff.
Accept any other relevant difference.
Marks should be allocated according to the markbands on page 5.
Award a maximum of [3] for a theoretical answer
Award a maximum of [4] if no reference to David/Salima (managers)
Award a maximum of [5] if the explanation of differences is mainly descriptive, but in context.
To achieve 5 or 6 marks there has to be a comparison.