Leadership: formula sheet

Key formulas

Definition of leadership

Leadership = Influence + Followers + Shared goal

Use this as the base of any definition answer. Add the word 'willingly' to show the difference from mere command.

Leader vs manager (core contrast)

Leader: vision, change, influence | Manager: planning, control, authority

A contrast frame, not a rule that applies in every case. In practice one person often plays both roles.

Characteristics checklist

Influence, followers, common goal, situational, continuous, vision, communication

Pick 5 to 6 and explain each in one line with a startup link.

Fiedler's three situational variables

Favourableness = Leader-member relations + Task structure + Position power

Task-oriented (low LPC) leaders do best in very favourable and very unfavourable situations. Relationship-oriented (high LPC) leaders do best in moderately favourable ones.

Managerial Grid axes

Concern for production (x-axis) and Concern for people (y-axis), each scored 1 to 9

9,1 is authority-compliance; 1,9 is country-club; 1,1 is impoverished; 5,5 is middle-of-the-road; 9,9 is team management.

Hersey-Blanchard style matching

Low readiness → Telling (S1); Low to moderate → Selling (S2); Moderate to high → Participating (S3); High → Delegating (S4)

Match the style to follower readiness, which combines ability and willingness.

Ohio State dimensions

Initiating structure (task focus) and Consideration (people focus)

Leaders can be high or low on each, giving four combinations.

Autocratic

Leader decides alone; one-way communication

Best for crisis, urgent decisions, untrained staff. Risk: low morale and little initiative.

Democratic

Leader consults team; shared or consultative decision

Best when ideas and buy-in matter and time is available. Risk: slow decisions.

Laissez-faire

Leader delegates fully; minimal interference

Best for skilled, motivated experts. Risk: lack of direction and accountability.

Transactional

Performance = Reward; poor performance = correction

Best for routine targets and stable operations. Risk: limited creativity.

Transformational

Vision + inspiration + individual attention + intellectual challenge

Best for change, growth and innovation. Risk: depends heavily on the leader's energy and may neglect routine detail.

Leader vs manager (core contrast)

Leader: vision, change, inspiring, risk-taking | Manager: planning, order, controlling, stability

Use as a comparison frame. It is a difference of emphasis, not two separate people. Many founders must do both.

Roles of an entrepreneurial leader

Visionary + Opportunity seeker + Team builder + Resource mobiliser + Decision maker + Culture setter + Ambassador

Use this list to structure any 'discuss the role' question. Pick the roles that fit the case.

Qualities-to-situation link

Quality → what the leader does → effect on the startup

A three-part sentence that earns application marks rather than plain recall marks.

Maslow's hierarchy (low to high)

Physiological → Safety → Social → Esteem → Self-actualisation

A satisfied need no longer motivates. Match the case to the unmet level.

Herzberg's two factors

Hygiene factors prevent dissatisfaction; Motivators create satisfaction

Improving hygiene factors alone does not motivate. The opposite of satisfaction is no satisfaction, not dissatisfaction.

McClelland's needs

Need for Achievement, Power and Affiliation

High achievers like moderate risk and quick feedback. Many successful entrepreneurs show a strong need for achievement.

Vroom's expectancy theory

Motivation = Expectancy × Instrumentality × Valence

This is a conceptual product. If any one part is zero, motivation is zero.

Tuckman's team stages

Forming → Storming → Norming → Performing → Adjourning

Conflict in the storming stage is normal. The leader's role changes at each stage.

Delegation principle

Responsibility + Authority + Accountability

Authority must match responsibility. Accountability stays with the delegator.

Rational decision process

Define problem → Gather information → Generate options → Evaluate → Choose → Implement → Review

Use it as the skeleton for any decision-making answer.

Quick revision

• Leadership is influencing people to work willingly towards a shared goal.
• Management focuses on planning and controlling tasks; leadership focuses on vision and influencing people.
• Trait theories look at the personal qualities of leaders; behavioural theories look at what leaders do.
• Situational or contingency theories say the best style depends on the situation.
• Autocratic style: leader decides alone; democratic: team takes part; laissez-faire: leader gives freedom.
• Transformational leaders inspire change; transactional leaders work through rewards and rules.
• Entrepreneurial leaders show vision, risk-taking, resilience, adaptability and ability to persuade.
• Motivation links needs and rewards to effort; know the main motivation theories by name and idea.
• A good team needs clear goals, defined roles, trust and open communication.
• Decision making in startups is often under uncertainty, with limited data and time.
• Ethical leadership means acting with integrity, fairness and transparency, and setting an example.
• In case answers, name the style or concept, cite case facts, and give a clear recommendation.

Common mistakes

• Treating leadership and management as the same thing Fix: Remember that management is about running systems, and leadership is about influencing people and driving change. State that one person can do both.
• Saying a leader must hold a formal position Fix: Write that leadership can be formal or informal. Influence, not rank, defines a leader.
• Saying Fiedler's model expects the leader to change style to suit the situation. Fix: Remember that Fiedler treats style as fixed. You change the situation or choose a different leader. Hersey-Blanchard asks the leader to adapt.
• Treating a high LPC score as task-oriented. Fix: High LPC means the leader rates the least preferred co-worker favourably, so the leader is relationship-oriented. Low LPC means task-oriented.
• Treating autocratic leadership as always bad. Fix: State when it works: a crisis, urgent deadlines or untrained staff. Always link the style to the situation.
• Confusing laissez-faire with democratic leadership. Fix: In democratic style the leader still guides and takes part in the decision. In laissez-faire the leader steps back almost completely.
• Treating leader and manager as opposites that never overlap. Fix: State that the difference is of emphasis and that a growing startup needs the founder to show both.
• Writing a bare list of qualities with no explanation. Fix: Add one line per quality on what the leader does and why it matters to a startup.
• Treating salary as the main motivator in every case. Fix: Under Herzberg, pay is a hygiene factor. Recommend recognition, growth and meaningful work when the staff are already paid fairly.
• Stating that delegation transfers accountability to the subordinate. Fix: Say that tasks and authority are delegated, but the leader remains accountable for the final result.

Exam tips

• Start every answer with a definition containing influence, followers and a common goal.
• For comparison questions, use a two-column layout with at least five bases.
• Link each point to a startup situation, since this paper tests application.
• In MCQs, watch for absolute words such as 'only' or 'always' in options about leadership.
• In case scenarios, identify whether the person is acting as a leader, a manager, or both, and justify with evidence from the text.
• For MCQs, learn the key terms of each theory (LPC, readiness, initiating structure, concern for people) because options often swap them.
• In case scenarios, quote facts from the case before naming the theory. Application earns the marks.
• For comparison questions, use a short point-by-point layout: basis, focus, view of learning, limitation.