leadership roles in business: directors, managers, supervisors and worker representatives

Leadership – Topic 7.3

7.3.1 Purpose of Leadership

Leadership is the process of influencing people to achieve organisational objectives. It provides direction, shapes culture, drives change and ensures that resources are used effectively to meet the company’s vision and mission.

7.3.2 Key Terminology

• Authority – the formal right to give orders and make decisions.
• Delegation – the assignment of responsibility and authority to another person.
• Empowerment – giving employees the freedom and confidence to take initiative.
• Leadership – influencing and guiding individuals or groups towards the achievement of goals.
• Management – planning, organising, leading and controlling resources to achieve objectives.

7.3.3 Leadership Roles

7.3.3.1 Directors

Directors sit at the top of the organisational hierarchy and set the long‑term strategic direction.

• Key responsibilities
  • Formulating vision, mission and corporate strategy.
  • Approving major investment, financing and risk‑management decisions.
  • Ensuring compliance with legal, regulatory and corporate‑governance standards.
  • Monitoring overall performance through board meetings and reports.
• Typical position in hierarchy: Board of Directors – reports to shareholders.
• Key skills: Strategic thinking, corporate governance, risk management, stakeholder communication.
• Example: Satya Nadella, Chief Executive and Director of Microsoft, who re‑defined the company’s cloud‑first strategy.

7.3.3.2 Managers

Managers translate the board’s strategic objectives into operational plans and coordinate the work of departments.

• Key responsibilities
  • Planning, organising, leading and controlling departmental activities.
  • Setting performance targets, budgets and KPIs.
  • Motivating, developing and appraising staff.
  • Reporting progress and variances to directors.
• Typical position in hierarchy: Middle‑level – reports to senior executives or directors.
• Key skills: Decision‑making, communication, delegation, analytical ability.
• Example: The marketing manager of a retail chain who launches a new promotional campaign aligned with the corporate growth plan.

7.3.3.3 Supervisors

Supervisors are front‑line leaders who directly oversee the day‑to‑day work of employees.

• Key responsibilities
  • Assigning tasks, monitoring output and quality.
  • Ensuring health, safety and environmental standards are met.
  • Providing on‑the‑job training, coaching and immediate feedback.
  • Resolving operational problems as they arise.
• Typical position in hierarchy: First‑line – reports to managers.
• Key skills: Interpersonal skills, problem‑solving, time management, technical competence.
• Example: A Toyota line‑leader who implements Kaizen ideas to improve assembly‑line efficiency.

7.3.3.4 Worker Representatives

Worker representatives act as a bridge between employees and management, ensuring that staff interests are taken into account in decision‑making.

• Key responsibilities
  • Communicating employee concerns, suggestions and grievances to management.
  • Participating in consultation committees, trade‑union meetings or works councils.
  • Negotiating terms of employment, pay, benefits and working conditions.
  • Promoting a positive workplace culture and employee well‑being.
• Typical position in hierarchy: Horizontal link – not part of the formal line of command but interacts with all levels.
• Key skills: Negotiation, empathy, knowledge of employment law, advocacy.
• Example: A union shop steward who negotiates a new collective agreement for factory workers.

7.3.4 Comparison of Leadership Roles

7.3.5 Leadership Styles (Cambridge Syllabus Requirement)

7.3.6 Leadership Theories

1. Trait Theory
   • Strengths: Simple; useful for selection and succession planning.
   • Limitations: Over‑emphasises innate qualities; neglects development and context.
   • Exam cue: “Good for ‘what makes a good leader?’ questions; weak for ‘how can leaders be developed?’.”
   • Relevance: Directors often exhibit traits such as vision, resilience and confidence.
2. Behavioural Theory
   • Strengths: Highlights learnable behaviours (task‑ vs. relationship‑oriented).
   • Limitations: Ignores situational variables and individual differences.
   • Exam cue: “Useful for ‘compare task‑oriented and people‑oriented leadership’.”
   • Relevance: Supervisors need a balance of task focus (production) and people focus (team morale).
3. Contingency Theory
   • Strengths: Flexible; recognises that effectiveness depends on fit between style and situation.
   • Limitations: Difficult to identify the “right” style in practice.
   • Exam cue: “Ideal for ‘when is a particular style most effective?’ questions.”
   • Relevance: Managers must adapt style when leading change projects versus routine operations.
4. Power & Influence Theory
   • Core model – French & Raven’s five bases of power
     • Legitimate – authority from position (e.g., a director issuing a policy).
     • Reward – ability to give benefits (e.g., a manager granting bonuses).
     • Coercive – capacity to punish or withhold (e.g., a supervisor applying disciplinary action).
     • Expert – knowledge or skill (e.g., a senior engineer consulted on technical decisions).
     • Referent – personal charisma or respect (e.g., a well‑known union leader).
   • Strengths: Explains how influence is exercised beyond formal authority.
   • Limitations: May overlook ethical implications of power use.
   • Exam cue: “Good for ‘explain how a leader can influence others without formal authority.’”
   • Relevance: Directors rely mainly on legitimate and expert power; worker representatives often use referent and expert power.
5. Transformational Leadership
   • Strengths: Inspires innovation, commitment and organisational change.
   • Limitations: Requires high emotional intelligence; can be unrealistic if over‑idealised.
   • Exam cue: “Useful for ‘evaluate the impact of visionary leadership on organisational culture.’”
   • Relevance: Effective at all levels, especially when a director launches a cultural transformation or when a supervisor drives continuous‑improvement initiatives.

7.3.7 Emotional Intelligence (EQ)

Goleman’s model identifies four core competencies that enhance leadership effectiveness.

7.3.8 Evaluation & Application

• Compare/contrast – Directors provide vision but act slowly; supervisors act quickly but have limited strategic influence. Managers bridge the gap, translating vision into operational plans.
• When each role is most effective
  • Strategic change or crisis – rely on Directors and senior Managers.
  • Process improvement or day‑to‑day efficiency – Supervisors and frontline teams.
  • Industrial relations or employee engagement – Worker representatives.
  • Situations requiring rapid, decisive action – Autocratic style (often at supervisory level).
  • Contexts demanding creativity and commitment – Democratic or Transformational style (common among managers).
• Evaluation criteria (exam focus)
  • Impact on employee motivation and morale.
  • Speed and quality of decision‑making.
  • Contribution to achieving organisational objectives.
  • Alignment with ethical standards and corporate social responsibility (CSR).

7.3.9 Links to Other A‑Level Topics

• Organisational Structure (7.1) – Leadership roles map onto vertical (hierarchical) and horizontal (matrix) structures.
• Communication (7.2) – Effective leadership requires clear upward, downward and lateral communication channels.
• Human Resource Management Strategy (7.4) – Leadership influences recruitment, training, performance management and employee relations.
• Motivation Theories (Maslow, Herzberg, McClelland) – Leaders apply these to design reward systems and work environments.
• CSR & Ethical Decision‑Making – Ethical leadership and stakeholder‑oriented power use are integral to sustainable business practice.

7.3.10 Real‑World Case Studies

1. Strategic Leadership – Satya Nadella (Microsoft)
   • Shifted focus from Windows to cloud services.
   • Used transformational leadership to change corporate culture and promote a growth mindset.
2. Front‑line Leadership – Toyota Line‑Leader
   • Applies Kaizen on the shop floor.
   • Empowers workers to stop the line and suggest improvements, raising quality and reducing waste.
3. Worker Representation – RMT Negotiation (UK Rail, 2023)
   • Represented drivers and conductors on pay, overtime and safety standards.
   • Resulted in a revised collective agreement that increased overtime rates and introduced a safety‑first clause.
4. Ethical Leadership & CSR – Unilever’s Sustainable Living Plan
   • Senior directors championed a long‑term vision of reducing environmental impact.
   • Power used was primarily legitimate and referent, aligning profit goals with societal expectations.

7.3.11 Suggested Diagram

Hierarchical flowchart illustrating the delegation chain: Directors → Managers → Supervisors → Workers. A horizontal double‑arrow crossing all levels represents the Worker Representative, indicating two‑way communication between staff and management.