IB Business Management HL

2.3 – Leadership and Management | Human Resource Management | IB Business Management HL

Unit 2 – Human Resource Management
2.3 – Leadership and Management

Topics Covered: Scientific & Intuitive Thinking/Management, Leadership vs Management, Leadership Styles

Scientific and Intuitive Thinking/Management

Scientific Management focuses on using data, logic, and structured analysis to make business decisions. Popularized by F.W. Taylor, it involves:
  • Collecting quantitative (measurable) data
  • Breaking tasks into defined steps
  • Measuring outcomes, setting standards
  • Evidence-based, rational decision making
  • Emphasis on process efficiency
Pros: Greater clarity, repeatability, reduced errors, reliable prediction
Cons: Can ignore innovation, creativity, and human/emotional factors
Intuitive Management/Thinking relies on experience, instinct, or "gut feeling" rather than only data. Also referred to as "art" of management:
  • Decisions often made quickly, based on pattern recognition
  • Used when data is incomplete, ambiguous, or time is short
  • Valuable for innovation, crisis leadership, and uncertain environments
  • Often combined with scientific approach in effective management
Pros: Fast, flexible, uses tacit knowledge
Cons: Prone to bias, may lack rigor or consistency

Leadership and Management: What’s the Difference?

  • Leadership is about inspiring and motivating people to work towards a vision or shared goal.
  • Management is about planning, organizing, and controlling resources to achieve business objectives efficiently.
  • Both are necessary—leaders set direction and motivate, managers put the systems in place to reach goals and keep the organization running smoothly.
Key Distinction:
  • Leadership inspires change and builds new directions
  • Management maintains order, consistency, and operational excellence
AspectLeadershipManagement
FocusVision, innovation, motivationProcesses, systems, execution
Core FunctionInspires people, sets directionPlans and organizes work
ApproachPeople-centered, emotionally intelligentTask/goal-oriented, logical
AuthorityPersonal charisma, influenceFormal position, assigned power
ChangeDrives change and transformationEnsures stability and predictability
Risk toleranceOften accepts risk, challenges status quoTends to minimize risk
ExampleSteve Jobs, Malala YousafzaiMiddle managers, operations heads

Leadership Styles

Leadership style is the approach a leader uses to provide direction, implement plans, and motivate people. Effective leaders adapt styles to the context, team, and goals.
Major Leadership Styles:
  • Autocratic: Leader makes decisions alone; expects obedience. Useful in crises but can demotivate creative teams.
  • Democratic (Participative): Involves employees in decision-making. Builds motivation and commitment; can be slow.
  • Laissez-faire: Delegates leadership to team. Promotes creativity and initiative; works well for skilled/motivated teams.
  • Paternalistic: Leader acts as "parent" figure, caring for staff welfare but still makes final decisions.
  • Transactional: Focuses on reward and punishment to manage performance (clear structure and accountability).
  • Transformational: Inspires innovation and change by motivating through vision and values.
Key Points for Students:
  • No single “best” style—context and people matter.
  • Effective managers use both data and intuition, and can flex between leading and managing as the situation requires.
  • Understanding yourself—and those you lead—helps match the right style to achieve organizational goals.
Shares: