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Management and Leadership: Functions, Roles and Styles

ICAN Foundation, Business Environment

21 min read · Updated 5 November 2026

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In this part

Every organisation needs people who plan, organise and direct the work of others. They are called managers, and the best of them are also leaders. This topic covers what managers do, the levels at which they work, the classic theories of Henri Fayol and Henry Mintzberg, how leadership differs from management, and the leadership styles and theories you must be able to compare and apply.

Examiners like this topic because it produces scenario questions. You will be given a manager in a situation and asked to explain what the manager does, judge the leadership style and recommend a better approach.

In 30 seconds

Management means getting work done through other people to achieve the organisation’s goals. Managers work at three levels: strategic, tactical and operational. Fayol described five functions of management: planning, organising, commanding, coordinating and controlling. Mintzberg found that managers actually play ten roles in three groups: interpersonal, informational and decisional. Management is about plans, systems and control. Leadership is about vision, influence and people.

The right leadership style depends on the people, the task and the situation.

What is management?

Management is the process of planning, organising, directing and controlling resources, mainly people, to achieve the goals of an organisation efficiently and effectively. A manager is a person responsible for the work of others and for the results they produce.

Efficiency means getting the most output from the resources used. Effectiveness means achieving the right goals. A good manager aims for both.

Definitions of management

No single definition exists, because economists, bureaucrats and sociologists each view management from their own angle. The syllabus gives several well-known ones, which you can use in an answer:

  • Mary Parker Follett: the art of getting things done through people.
  • Harold Koontz: the art of getting things done through others and with formally organised groups.
  • Frederick Taylor: knowing what to do and doing it in the best and cheapest way.
  • Peter Drucker: the process by which the purpose and objectives of a human group are determined, clarified and put into effect.
  • George Terry: a distinct process of planning, organising, actuating and controlling, used to reach set objectives.
  • Joseph Massie: the process by which a co-operative group directs action towards common goals.

In general terms, management means planning, organising, leading and controlling people and resources, human, financial, technological and natural, to achieve organisational goals efficiently and effectively.

Management skills

Management skills are the abilities a manager needs to carry out the tasks of the job, avoid crises and solve problems when they arise. They can be developed through learning and through experience. Robert Katz identified three basic types.

SkillWhat it meansExample
Technical skillsThe knowledge and ability to use the techniques, tools and processes of the workOperating accounting software, designing a product, marketing a service
Conceptual skillsThe ability to think abstractly, see the whole picture, diagnose a problem and find creative solutions. It helps a manager predict the challenges the department or business will faceSpotting that falling sales come from a change in the market and not from poor selling
Human (interpersonal) skillsThe ability to work with, relate to and motivate people, and to make use of their potentialResolving a dispute between two staff and keeping the team motivated

Six essential management skills

SkillWhy it matters
PlanningOrganising activities within the limits of time, money and labour, and setting goals, strategies, tasks and schedules to reach them
CommunicationShares information across the team, whether formal or informal, verbal or written, vertical or horizontal. It prevents conflict and helps resolve problems
Decision-makingManagers make decisions all the time. Good decisions bring success and poor ones bring failure, and the manager is accountable for each
DelegationPassing tasks and authority to the right people, which saves time, raises productivity and builds responsibility in staff
Problem-solvingIdentifying a problem and finding the best way to handle it, even when conditions are poor
MotivatingBringing out the behaviour wanted from staff, using intrinsic and extrinsic motivation suited to the team and its culture

Levels of management

LevelWhoTime horizonTypical decisions
Strategic (top)Directors, chief executiveLong term, often three to five years or moreOverall direction, which markets to enter, major investments
Tactical (middle)Heads of department, regional managersMedium term, up to about a yearTurning strategy into departmental plans, budgets and targets
Operational (first line)Supervisors, team leadersShort term, daily or weeklyScheduling work, solving immediate problems, supervising staff

The functions of management

The syllabus lists six functions. Planning, organising and staffing are preparation. Directing is what sets the work in motion.

FunctionWhat it involves
PlanningDefining performance goals and deciding what actions and resources are needed. Strategic plans are long term and cover the whole organisation. Tactical plans turn strategy into specific actions, saying what is to be done, by whom and with what resources. Planning today draws on input from every level
OrganisingDeciding how the plans will be carried out: creating structures, defining roles and responsibilities, setting up communication channels, assigning authority and allocating resources, and deciding how the work of groups and individuals is coordinated
ControllingMaking sure results match the standards. It has four steps: set standards of performance, measure actual performance, compare the two and find any deviation, and take corrective action. A good system predicts deviations before they happen
CoordinatingHarmonising activities so that they work together. The greater the division of labour, the greater the need for coordination. Dalton says it should be fostered by participative management and not forced, and should be timely and balanced both horizontally and vertically. Follett adds that it must be continuous, direct between the people concerned and begun at the outset
DirectingThe interpersonal side of management, which guides and influences staff towards goals. Its four elements are supervision, motivation, leadership and communication
SupervisingOverseeing and guiding the daily work of a team, giving feedback, training, solving problems and acting as the bridge between staff and senior management

Supervision

Supervision means looking over the work of others to make sure it is performed properly. It is also called front-line or supervisory management and is the lowest level of management. The main task is administrative management, but supervisors may also develop staff by empowering them and give on-the-job training.

Effective supervision improves productivity, develops employees, raises satisfaction and morale, and helps the organisation reach its goals.

Management and accounting

Accountants supply management with information that is reliable, comprehensive, clear and timely. Management uses it to perform its functions: budgets support planning, budgetary control reports support control, appraisals of capital projects support decisions, and regular reports on the business support monitoring. Without management, much of the purpose of accounting in business would disappear.

Fayol’s functions and principles of management

Henri Fayol, a French mining engineer and manager, was one of the first to describe what managers do. He set out five functions.

  1. Planning: deciding the goals and the way to reach them.
  2. Organising: arranging the people, resources and structure needed to carry out the plan.
  3. Commanding: giving instructions and directing staff so that the work gets done.
  4. Coordinating: making sure the different parts of the organisation work together.
  5. Controlling: checking results against the plan and correcting any deviation.

Modern textbooks often shorten the list to four functions: plan, organise, lead and control.

Fayol also proposed fourteen principles. Learn the names: division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to the general interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps.

Mintzberg’s ten managerial roles

Henry Mintzberg watched what managers did all day and found that real work is fragmented and varied, not the neat cycle of planning and controlling that Fayol described. He grouped what managers do into ten roles in three categories.

CategoryRoleWhat the manager doesExample
InterpersonalFigureheadPerforms ceremonial and symbolic dutiesOpens a new branch, presents long-service awards
LeaderMotivates, guides and develops staffCoaches a junior accountant
LiaisonBuilds contacts outside the teamMeets managers in other departments and external partners
InformationalMonitorScans for information about the business and its environmentReads sales reports and industry news
DisseminatorPasses information to staffBriefs the team on a new policy
SpokespersonSpeaks for the organisation to outsidersAnswers questions from the press or regulators
DecisionalEntrepreneurStarts and designs improvements and new venturesLaunches a new product line
Disturbance handlerDeals with sudden problemsResponds to a supplier failure or a staff dispute
Resource allocatorDecides who gets money, time and peopleApproves departmental budgets
NegotiatorBargains on the organisation’s behalfAgrees contract terms with a supplier or union

Management and leadership compared

The two overlap, and a good manager is also a leader. But they are not the same. A leader influences people to follow a direction willingly. A manager has authority because of a position. A leader has influence because people choose to follow.

PointManagementLeadership
Main focusSystems, structures and tasksPeople, vision and direction
PurposeOrder, stability and efficiencyChange, growth and purpose
Source of powerFormal position and authorityPersonal influence, trust and example
Time viewShort to medium term plansLong-term vision
Typical actionsPlans, budgets, organises, controlsInspires, motivates, aligns people to a goal
Relationship with peopleSubordinates who follow instructionsFollowers who commit to the goal
ApproachTask-orientedPeople-oriented
Decision-makingAnalytical, based on data and proceduresOften intuitive and based on values
StyleTransactional and directiveTransformational and participative
CommunicationInforms and instructsInspires and engages
ChangeMaintains order and consistencyDrives change and innovation
Attitude to riskReduces riskAccepts calculated risk

A well-known way to put it, usually credited to Warren Bennis, is that managers do things right while leaders do the right things.

Similarities between management and leadership

AspectWhat both share
GoalBoth aim to achieve organisational goals and improve performance
InfluenceBoth involve influencing others to get tasks done
Decision-makingBoth make decisions that affect the team or organisation
CommunicationBoth need it to convey vision, goals and expectations
Problem-solvingBoth identify problems and find solutions
Team buildingBoth build and maintain effective teams
MotivationBoth seek to motivate staff to perform at their best
Strategic thinkingBoth align actions with organisational objectives
ResponsibilityBoth are responsible for the success or failure of their teams
AdaptabilityBoth must adapt to change

Leadership styles

StyleHow decisions are madeSuitsWeakness
AutocraticThe leader decides alone and expects obedienceEmergencies, untrained or unmotivated staff, tasks needing tight controlDemotivates skilled people, ideas are lost, staff depend on the leader
Democratic (participative)The leader consults the team and often decides with themComplex problems, skilled and willing staffSlower, and weak when a quick decision is needed
Laissez-faireThe leader leaves decisions to the teamHighly skilled, self-motivated expertsLack of direction, confusion and drift
PaternalisticThe leader decides but explains and looks after staffTeams that value security and careCan breed dependence and resentment

Leadership theories at a glance

TheoryKey idea
Tannenbaum and Schmidt’s continuumLeadership runs along a line from boss-centred, where the manager decides and tells, to team-centred, where the team decides within limits. The best point depends on the manager, the team and the situation
Blake and Mouton’s managerial gridPlots concern for production against concern for people. Five main styles: impoverished (low on both), country club (high people, low production), produce or perish (high production, low people), middle of the road, and team management (high on both), which the authors favour
Adair’s action-centred leadershipA leader must balance three overlapping needs: achieve the task, build the team and develop the individual
Transactional and transformational leadershipA transactional leader trades rewards for performance. A transformational leader inspires people to go beyond self-interest for a shared vision
Hersey and Blanchard’s situational leadershipMatch the style to how ready followers are: telling for low readiness, selling, participating, then delegating for high readiness
Fiedler’s contingency theoryEffectiveness depends on a fit between the leader’s natural style and how favourable the situation is. Fiedler argued the situation should be changed to fit the leader

Worked example: choosing a leadership style

Scenario. Zainab is the manager of a bank branch in Kaduna. A new digital banking system goes live next month. Half her team are young recruits who learn fast. The rest are long-serving officers who doubt the change. Staff say she gives orders and never explains. What style should she use?

  1. Diagnose the current style. Giving orders without explanation is autocratic. It may work in a crisis, but it is likely to harden the resistance of the long-serving officers.
  2. Look at the situation. The change is big and the team is split. Commitment matters more than speed, because the system only works if staff use it properly.
  3. Weigh the options. A democratic style would involve staff and reduce resistance, but it takes time. Laissez-faire would leave the doubters without help. A situational approach lets her tell and train the new recruits briefly, then consult and involve the experienced officers.
  4. Recommend. Use a democratic, participative style, adjusted to each group, explaining the reasons for the change and using the experienced officers to coach the recruits on customer handling.
  5. State the risk. It is slower. She should set a firm go-live date so that consultation does not become delay.

Management and leadership in more detail

Mintzberg’s ten roles: a worked mapping

GroupRoleWhat the manager doesExample
InterpersonalFigureheadPerforms ceremonial and symbolic dutiesPresents long-service awards
LeaderMotivates, develops and directs staffSets targets and coaches a team
LiaisonBuilds contacts inside and outsideMeets suppliers and other department heads
InformationalMonitorGathers informationReads reports and market news
DisseminatorPasses information to staffBriefs the team on a new policy
SpokesmanSpeaks for the unitRepresents the branch in the press
DecisionalEntrepreneurStarts change and improvementLaunches a new service
Disturbance handlerResolves conflicts and crisesSettles a dispute between two staff
Resource allocatorDecides how money, time and people are usedSets the budget
NegotiatorBargains on behalf of the unitAgrees terms with a supplier

Leadership styles: when each works

An autocratic leader decides alone and tells others what to do. It is quick and clear and suits emergencies or untrained, inexperienced staff, but it discourages initiative and can cause resentment. A democratic or participative leader consults the team and decides jointly. It builds commitment and uses the team’s knowledge, but it is slower and may not suit a crisis.

A laissez-faire leader gives wide freedom. It suits experienced, self-motivated professionals but can lead to drift without direction. The best style depends on the task, the people and the situation, so effective leaders adapt their style.

Management skills by level

Technical skill matters most for supervisors and front-line managers. Human skill matters at every level. Conceptual skill matters most for senior managers, who must see the whole organisation and its environment.

Leadership versus management: a clear contrast

A manager asks how and when, a leader asks what and why. Management brings order to complexity through planning, budgeting and control. Leadership copes with change by setting direction, aligning people and inspiring them. An organisation needs both: management without leadership is bureaucratic, and leadership without management is directionless.

Exam focus: management, leadership and Section A definitions

November 2025 (Question 4) asked for definitions of leadership and management, five distinctions and five similarities. The tables below follow the model answer.

Definitions

  • Leadership is the ability to influence and drive group effort towards goals. The influence may come from a formal position, such as a managerial post.
  • Management is getting people together to achieve goals and objectives, using available resources efficiently and effectively. It covers planning, organising, staffing, leading or directing, and controlling.
  • George R Terry’s definition describes management as a distinct process of planning, organising, actuating and controlling, using both science and art, to achieve predetermined objectives. This was tested in Section A in May 2026.

Leader and manager: distinctions

AspectLeaderManager
FocusVision, inspiration and directionPlanning, organising and controlling
GoalMotivating people towards a shared visionAchieving organisational objectives efficiently
ApproachPeople-orientedTask-oriented
Decision-makingOften intuitive and value-basedAnalytical, based on data and procedures
Source of powerInfluence and charismaFormal authority and position
StyleTransformational and participativeTransactional and directive
Attitude to riskWilling to take risksRisk-averse, focused on stability
ChangeDrives change and innovationMaintains order and consistency
CommunicationInspires and engagesInforms and instructs
Primary roleLeading peopleManaging work and processes

Leader and manager: similarities

Both aim to achieve organisational goals; both influence others; both make decisions; both rely on effective communication; both solve problems; both build and maintain teams; both motivate employees; both need strategic thinking; both carry responsibility for the success of their teams; and both must adapt to change.

Exam tip. Write the distinctions as short pairs, for example: a leader inspires a vision, while a manager organises the work to deliver it. Pairs earn marks for the explanation as well as the point.

Exam focus: the basic management functions in the syllabus

The syllabus explains four basic functions, with the point that each has moved from a rigid, top-down form towards a collaborative one.

  • Planning. Defining performance goals and deciding what actions and resources are needed. Strategic plans are long-term, cover the whole organisation and bridge the gap between what the organisation is and what it plans to become. Tactical plans turn strategy into specific actions for departments, stating what must be done, who will do it and which resources are needed. Planning today draws on inputs from all levels.
  • Organising. Using resources so the plans are carried out efficiently. It includes creating the structure, defining roles and responsibilities, assigning authority, allocating resources and setting up communication channels. Modern organising favours team-based structures, cross-functional collaboration and decentralised decisions.
  • Controlling. Making sure results conform to standards, and predicting deviations before they happen. Theo Haimann describes it as checking whether proper progress is being made towards objectives and acting, if necessary, to correct any deviation. The steps are: set standards of performance; measure actual performance; compare actual with standard and find any deviation; and take corrective action. Modern control adds feedback, performance metrics, and a focus on learning and continuous improvement.
  • Co-ordinating. Harmonising activities so departments and teams work together smoothly, which supports communication, aligned effort and collaboration.

The syllabus also lists supervision (overseeing and guiding staff, giving feedback, and training and development), motivation and leadership among the functions. Their benefits are improved productivity, employee development, higher employee satisfaction and achievement of organisational goals. The six management skills it names are planning, communication, decision-making, delegation, problem-solving and motivating.

Mintzberg’s three categories

Interpersonal roles are figurehead, leader and liaison. Informational roles are monitor, disseminator and spokesperson. Decisional roles are entrepreneur, disturbance handler, resource allocator and negotiator.

Exam focus: types of management skill and leader versus manager

Three basic types of management skill (Robert Katz)

  • Technical skills. The ability and knowledge to use techniques to reach objectives, such as operating machines and software, boosting sales, designing products and marketing them.
  • Conceptual skills. The ability to think abstractly and form ideas: to see the whole picture, analyse and diagnose a problem, find creative solutions and predict hurdles for the department or business.
  • Human (interpersonal) skills. The ability to work with and relate to people, which lets managers use human potential and motivate staff.

Six essential management skills

  1. Planning. Setting achievable goals and strategies and outlining tasks and schedules within the limits of time, money and labour.
  2. Communication. Sharing information formally or informally, verbally or in writing, vertically or horizontally, so the team acts as one and conflicts are prevented.
  3. Decision-making. Good decisions bring success and poor ones failure, and the manager is accountable for the results.
  4. Delegation. Passing tasks and authority to the right people, which saves time, raises productivity and builds accountability.
  5. Problem-solving. Identifying a problem and finding the best way to handle it, even when conditions are poor.
  6. Motivating. Bringing out the desired response from staff, using intrinsic and extrinsic motivation as the culture and personalities allow.

Leadership and management: similarities

Both hold authority over a group of people and are responsible for it. Employees may look to both for inspiration. Both are necessary, and they work closely together to keep the business running. Both need self-assurance, may introduce new strategies and changes, usually show a strong work ethic, and are usually friendly and positive towards work and challenges.

Leadership and management: differences

  • Managers set the structure and delegate authority and responsibility. Leaders give direction by developing and communicating a vision and inspiring people to achieve it.
  • Management covers planning, organising, staffing, directing and controlling. Leadership is mainly part of the directing function, with a focus on listening, relationships, teamwork, inspiring, motivating and persuading.
  • A leader’s authority comes from followers. A manager’s authority comes from position.
  • Managers follow the organisation’s policies and procedures. Leaders follow their own instinct.
  • Management is closer to a science (exact, planned, standard, logical). Leadership is closer to an art.
  • Leadership has a strategic, longer-term orientation. Management is more involved in tactical, shorter-term decisions.

Common mistakes in the exam

  • Treating ‘manager’ and ‘leader’ as the same and giving no differences.
  • Listing Mintzberg’s roles by name with no explanation or example.
  • Calling a style ‘best’ without tying it to the people and the situation.
  • Mixing Fayol and Mintzberg. Fayol gave five functions. Mintzberg gave ten roles.
  • Describing only the strengths of a style and ignoring its weakness.

Quick revision

  • Three levels: strategic, tactical, operational, with different time horizons.
  • Fayol’s five functions: plan, organise, command, coordinate, control.
  • Mintzberg’s ten roles: three interpersonal (figurehead, leader, liaison), three informational (monitor, disseminator, spokesperson), four decisional (entrepreneur, disturbance handler, resource allocator, negotiator).
  • Management is about systems and control. Leadership is about vision and influence.
  • Katz’s three management skills: technical, conceptual and human. Six essential skills: planning, communication, decision-making, delegation, problem-solving and motivating.
  • The syllabus’s six functions: planning, organising, controlling, coordinating, directing and supervising. Control has four steps. Directing has four elements: supervision, motivation, leadership and communication.
  • Styles: autocratic, democratic, laissez-faire, paternalistic. Know when each suits and its weakness.
  • Theories: Tannenbaum and Schmidt, Blake and Mouton, Adair, transformational and transactional, Hersey and Blanchard, Fiedler.

Practice questions

These are original questions written in the style of the Institute of Chartered Accountants of Nigeria (ICAN) exam. Try each one before you open the answer.

Section A style: multiple choice

Question 1. Which of the following is an interpersonal role in Mintzberg’s classification?

  1. Monitor
  2. Figurehead
  3. Negotiator
  4. Disseminator
Show the answer

B. Figurehead. Monitor and disseminator are informational roles. Negotiator is a decisional role.

Question 2. A manager who deals with the sudden failure of a key supplier is performing which role?

  1. Entrepreneur
  2. Disturbance handler
  3. Resource allocator
  4. Negotiator
Show the answer

B. Disturbance handler. A sudden problem that needs immediate action is the disturbance handler role.

Question 3. According to Fayol, which function involves comparing results with plans and correcting deviations?

  1. Planning
  2. Organising
  3. Controlling
  4. Commanding
Show the answer

C. Controlling.

Question 4. Which statement best distinguishes leadership from management?

  1. Leadership is about systems and procedures, while management is about vision
  2. Leadership relies on influence and vision, while management relies on position and plans
  3. Managers inspire people and leaders organise them
  4. There is no difference
Show the answer

B. Leaders influence people to follow a vision. Managers use the authority of their position to plan and control.

Question 5. A leader makes decisions alone and expects them to be followed without question. This style is:

  1. Autocratic
  2. Democratic
  3. Laissez-faire
  4. Transformational
Show the answer

A. Autocratic.

Question 6. The three overlapping areas in Adair’s action-centred leadership are:

  1. Task, team and individual
  2. People, production and profit
  3. Plan, do and check
  4. Telling, selling and delegating
Show the answer

A. A leader must balance the task, the team and the individual.

Question 7. Robert Katz identified three basic types of management skill. They are:

  1. Technical, conceptual and human skills
  2. Planning, organising and controlling
  3. Interpersonal, informational and decisional
  4. Autocratic, democratic and laissez-faire
Show the answer

A. Option B lists management functions, option C lists Mintzberg’s role groups and option D lists leadership styles.

Question 8. Which of the following are the four elements of the directing function?

  1. Setting standards, measuring, comparing and correcting
  2. Supervision, motivation, leadership and communication
  3. Structures, roles, authority and resources
  4. Budgets, forecasts, targets and reports
Show the answer

B. Option A gives the four steps of control. Option C describes organising.

Question 9. Which Mintzberg role is a manager performing when briefing staff about a new policy?

  1. Figurehead
  2. Disseminator
  3. Negotiator
  4. Entrepreneur
Show the answer

B. Passing information to staff is the disseminator role.

Question 10. Which leadership style is most suitable in an emergency?

  1. Laissez-faire
  2. Autocratic
  3. Democratic
  4. None
Show the answer

B. A quick and clear decision is needed.

Question 11. Which skill is most important for senior managers?

  1. Technical
  2. Conceptual
  3. Manual
  4. Clerical
Show the answer

B. They must see the whole organisation.

Question 12. A leader who asks ‘what and why’ rather than ‘how and when’ is displaying:

  1. Management behaviour
  2. Leadership behaviour
  3. Supervision
  4. Delegation
Show the answer

B. Leaders set direction and purpose.

Section B style: written questions

Question 13 (10 marks). Explain, with an example of each, any four of Mintzberg’s managerial roles.

Show the marking guide

Four roles (8 marks). For each chosen role, give 1 mark for stating and explaining it and 1 mark for a suitable example. For instance, the resource allocator decides how money, time and people are used, such as approving a department budget. The disturbance handler deals with sudden problems, such as a supplier failure.

Categories (2 marks). Name the three groups: interpersonal, informational and decisional, and place the roles in them.

Question 14 (20 marks). Zainab manages a bank branch in Kaduna. A new digital banking system goes live next month. Half of her team are young recruits and the rest are long-serving officers who resist the change. Staff complain that she gives orders and never explains.

(a) Distinguish between management and leadership. (6 marks)

(b) Evaluate the leadership styles Zainab could use and recommend one. (8 marks)

(c) Explain how three of Mintzberg’s roles apply to Zainab during the roll-out. (6 marks)

Show the marking guide

(a) 6 marks. Three differences, 2 marks each (point and explanation): focus on systems versus people, source of authority versus influence, short-term order versus long-term vision and change.

(b) 8 marks. Three styles with a strength and a weakness each (up to 6): autocratic, democratic and laissez-faire. Recommendation with reasons tied to the scenario (2): a participative style adapted to each group, because commitment matters more than speed in a change of this kind.

(c) 6 marks. Three roles, 2 marks each, linked to the scenario: disseminator, explaining the reasons for the change to staff. Leader, coaching and motivating the team. Disturbance handler, dealing with resistance and system problems. Resource allocator, deciding who gets training time.

A further written question

Question 15 (10 marks). Explain the three basic management skills identified by Katz and how their importance varies by level of management.

Model answers

Show the model answer to Question 13

Four Mintzberg roles with examples. Leader (interpersonal): the manager motivates and directs staff, for example by setting targets and coaching a team. Disseminator (informational): the manager passes information to staff, for example briefing the team on a new policy. Disturbance handler (decisional): the manager resolves conflicts and crises, for example settling a dispute between two employees.

Resource allocator (decisional): the manager decides how money, time and people are used, for example preparing the department’s budget.

Show the model answer to Question 14

(a) Management and leadership. Management is about planning, organising, controlling and coordinating resources to achieve goals efficiently. It is concerned with systems, structure and stability. Leadership is about setting direction, inspiring and influencing people and coping with change. A manager typically asks how and when, a leader asks what and why. Managers are appointed and have formal authority, while leaders may emerge from any level and rely on influence.

(b) Leadership styles for Zainab. An autocratic style is quick but is what the staff already complain about, and it would deepen resistance. A democratic style involves staff, explains reasons and builds commitment, which suits the long-serving officers who resist change and the young recruits who want to contribute, though it takes more time. A laissez-faire style would leave staff without direction at a critical time.

I recommend a participative style, with some direction for the technical roll-out: explain why the system is coming, consult staff on how to introduce it, and use the young recruits to coach the officers, while setting clear deadlines.

(c) Mintzberg’s roles. As disseminator, Zainab must explain the system, timing and training to all staff. As disturbance handler, she must deal with resistance and anxiety among long-serving officers. As resource allocator, she must allocate time, training and support to the team during the changeover. As leader, she must motivate the staff and set an example.

Show the model answer to Question 15

Robert Katz identified three basic management skills. Technical skills are the ability to use the techniques, tools and processes of the work, such as operating accounting software. Conceptual skills are the ability to think abstractly, see the whole picture, diagnose problems and plan for the future. Human skills are the ability to work with, understand and motivate people. Their importance varies by level.

Technical skill matters most for supervisors and first-line managers, who deal directly with the work. Conceptual skill matters most for top managers, who must see how the whole organisation fits its environment. Human skill is important at every level because managers always get results through people.

Pathfinder on management and leadership

These are the ICAN Pathfinder questions that test this topic. ICAN owns the questions and the suggested solutions, so we point you to them and do not copy them. Open your Pathfinder, attempt each question under exam conditions, then check your answer against the notes above.

May Diet, 2026: Question 4 (20 marks)

Draws on managerial roles and on motivation through Maslow’s hierarchy of needs. Revise Mintzberg’s roles here, then the motivation topic.

Revise first: Mintzberg’s ten managerial roles

November Diet, 2025: Question 4 (20 marks)

Tests leadership and management: two definitions, five distinctions and five similarities. Revise the comparison tables in the Exam focus section.

Revise first: Exam focus: management, leadership and Section A definitions

May Diet, 2021: Question 5 (20 marks)

From the earlier Business, Management and Finance paper. Asks about Adair’s action-centred leadership, the skills in each of its three groups, and Adair’s 50/50 rule. Revise the leadership theories table.

Revise first: Leadership theories at a glance

May Diet, 2023: Question 3 (20 marks)

From the earlier Business, Management and Finance paper. Part (b) asks for the leadership styles identified by Rensis Likert, and part (a) for the characteristics of conflict.

Revise first: Leadership styles

May Diet, 2026: Section A (Question 9)

Tested the definition of management as planning, organising, actuating and controlling (George R Terry). Revise the definitions list.

Revise first: Exam focus: management, leadership and Section A definitions

Section A of each diet (multiple choice)

Multiple-choice questions can test Fayol’s functions, Mintzberg’s roles and leadership styles. Check Section A of every diet you practise for items on these points.

Revise first: Leadership styles

Source: ICAN Pathfinder, Business Environment. Diets covered: May Diet, 2021 to May Diet, 2026. November Diet, 2024 is not yet mapped.

Spotted a mistake? Tell us and we will check it.

Where this fits

See every past question on Business Environment and the topic each one tests in the Pathfinder question finder.

After it, move on to Financial Accounting.

All Business Environment topics

You are reading topic 12 of 32.

  1. Types of business organisation (i): sole proprietors, partnerships and LLPs01
  2. Types of business organisation (ii): companies, NGOs, cooperatives and joint ventures02
  3. Business functions, economic activities and the importance of business03
  4. Organisational structure (i): types of structure04
  5. Organisational structure (ii): authority, delegation and control05
  6. Committees, the board and directors06
  7. The business and its stakeholders07
  8. SWOT analysis and environmental scanning08
  9. The finance function09
  10. Internal control and internal audit10
  11. Ethics and corporate social responsibility11
  12. Management and leadership12 here
  13. Management theories: scientific, administrative and human relations13
  14. Organisational culture, behaviour, and formal and informal organisation14
  15. Groups, conflict and motivation15
  16. Communication in business16
  17. Digital communication17
  18. Technology business models, project management, emotional intelligence and social thinking18
  19. Introduction to economics19
  20. Demand and supply20
  21. Costs, revenue and profit21
  22. Market structures and price controls22
  23. Market failure, externalities and government intervention23
  24. National income accounting24
  25. Financial institutions and markets25
  26. Monetary and fiscal policy26
  27. Inflation and unemployment27
  28. Economic growth and development28
  29. Business uses of IT, big data and data analytics29
  30. Cybersecurity30
  31. E-commerce and e-business31
  32. Technology, globalisation and fintech32
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