All subjects · Business · WBS11 Marketing and people

Leadership: management versus leadership and leadership styles

Edexcel IAL Business · WBS11 Marketing and people

Leaders set direction and influence people; managers plan and organise. This lesson covers the distinction between management and leadership, the four leadership styles in the specification and why it is difficult for an entrepreneur to become a leader as a business grows.

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Management and leadership

Management is getting things done through planning, organising, coordinating and controlling resources to achieve set objectives. Managers focus on systems, processes and the short term.
Leadership is setting a vision and direction and influencing and inspiring others to follow it. Leaders focus on people, change and the long term.

A manager 'does things right'; a leader 'does the right things'. Many roles need both.

Leadership styles

Autocratic: the leader makes decisions alone and gives instructions; little consultation; close supervision. Fast decisions and clear direction, useful in a crisis or with unskilled staff; but can demotivate skilled workers, stifle creativity and cause talent to leave. The October 2024 WBS11 essay asked about the benefits of autocratic leadership to a well-known entrepreneur's businesses (20 marks); the scheme credited fast decisions and clear direction against stifled creativity and loss of talent.
Paternalistic: the leader decides but in what they believe are the best interests of the workers, consulting them and caring for their welfare (a 'father figure'). Staff feel valued and loyal, but may become dependent and still have little say.
Democratic: the leader involves staff in decisions, encourages discussion and may delegate. Motivating (Maslow's esteem, Herzberg's motivators), uses staff ideas; but slower decisions and not suited to emergencies.
Laissez-faire: the leader gives staff broad goals and lets them decide how to achieve them, with little interference. Suits highly skilled, self-motivated staff (researchers, designers); can lead to lack of direction and coordination with less able staff.

From entrepreneur to leader

An entrepreneur who starts a business usually does everything personally and makes all decisions. As the business grows, this becomes harder:

They must delegate and trust others, which may not suit their personality.
They need to build systems, structures and a management team rather than relying on their own effort.
Their skills (creativity, risk-taking) may differ from those needed to lead a large organisation (communication, planning, people management).
Their autocratic habits can demotivate a larger, skilled workforce.

Some founders bring in professional managers or step back into a role that uses their strengths.

Worked example

A software start-up has grown from 5 to 120 staff. The founder still approves every decision. Assess whether she should change her leadership style.

Problem: autocratic control slows decisions and frustrates skilled developers.
Change: a democratic or laissez-faire style would use staff expertise, speed decisions and motivate.
Counter: in a crisis or with new, inexperienced staff some direction is still needed.
Judgement: delegating to a management team while keeping control of strategy is likely to suit a skilled workforce of 120.

Answer: She should move towards a democratic style with delegation, keeping autocratic decisions for urgent situations.

Key idea: Management: plan, organise, control. Leadership: vision, influence, inspire. Styles: autocratic, paternalistic, democratic, laissez-faire. Entrepreneurs struggle to delegate and build systems as firms grow.

Check yourself

A leader who makes all decisions alone and expects instructions to be followed has which style?
- Democratic
- Laissez-faire
- Paternalistic
- Autocratic
Show answer
Autocratic. No consultation.
Which style is most suitable for a team of highly skilled, self-motivated research scientists?
- Autocratic
- Laissez-faire
- Paternalistic
- Scientific management
Show answer
Laissez-faire. Skilled, motivated staff need freedom.
A leader who decides what is best for employees, cares for their welfare and explains decisions is
- laissez-faire
- democratic
- autocratic with no consultation
- paternalistic
Show answer
paternalistic. A father-figure style.
Explain the difference between management and leadership.
Show answer
Management is planning, organising and controlling resources to achieve objectives, whereas leadership is setting a vision and inspiring and influencing people to follow it.. Managers organise; leaders inspire.
Explain one disadvantage of democratic leadership.
Show answer
Consulting staff and discussing options takes time, so decisions are slower, which may be a problem in a crisis or when quick action is needed.. Consultation slows decisions.
Why do many entrepreneurs find it difficult to become leaders of larger businesses?
- They may be reluctant to delegate and lack people-management skills needed in a large firm
- They are always less intelligent than managers
- Leaders do not need to make decisions
- Large firms do not need leadership
Show answer
They may be reluctant to delegate and lack people-management skills needed in a large firm. Growth needs delegation, systems and different skills.
In which situation might an autocratic style be most appropriate?
- Designing a creative advertising campaign with experts
- Long-term planning with experienced managers
- An emergency requiring a quick decision
- Building a team culture of innovation
Show answer
An emergency requiring a quick decision. Speed and clarity matter in a crisis.

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Last updated 8 November 2026. Spotted a mistake? Tell us.