Chapter 5 Leadership

Jul 17, 2026

Uploaded by Violet

Chapter 5 focuses on leadership as the process of guiding people in an organization to achieve defined goals, distinguishing transformational and transactional leadership through their time horizons, mission orientation, and managerial behaviors. It outlines the roles of effective leaders, then surveys key leadership theories including trait, style/behavioral, contingency, and McGregor’s Theory X and Theory Y. The chapter also compares entrepreneurship and intrapreneurship and explains a professional code of ethics for accountants, covering core principles and common ethical threats such as self-interest, self-review, advocacy, and familiarity.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages11

Reading Time28 min

AccessFree to download

Chapter 5 L e a de r s h i p Leadership Leadership means leading a group of people in an organization to achieve organizational goals. A leader can be ‘transformational’ leader or a ‘transactional’ leader Transformational Leader Establishing mission & strategies Innovation and growth Long term view Roles of Effective Leader ▪ Create inspiring vision and mission ▪ Lead by example ▪ Result oriented ▪ Manage change ▪ Motivate Transactional Leader (Manager) Achieving mission & strategies Managing and controlling Medium / short term view ▪ Empowerment and accountability ▪ Communicate ▪ Teamwork ▪ Coach and mentor ▪ Problem solving Leadership Theories Trait Theories ▪ Focuses on qualities of a good leader ▪ E.g. visionary, energy, communication skills, motivator, etc. Style / Behavioral Theories ▪ Focuses on influencing style of the leader ▪ E.g. Ashridge: Tell, Sell, Consult, Join Contingency Theories ▪ No ‘one right way’ of leading, that will serve all situations ▪ Leadership styles varies with the situation (contingent) ▪ Appropriate leadership style depends on the team and the nature of task ▪ E.g. Feilder: Psychologically Distant Managers, Psychologically Close Managers McGregor-Theory X and Theory Y: Theory X Manager: ▪ Manager feels that the team lacks expertise and responsibility ▪ Hence the manager dictates what needs to be done and the team is closely monitored ▪ The manager gets heavily involved in routine tasks and minor decision making as well ▪ The team is not accountable as they just follow orders ▪ This approach works for simple repetitive tasks Theory Y Manager: ▪ Manager feels that the team has the expertise and willing to take responsibility ▪ The manager allows the team to do self-planning and decision making ▪ The manager does not gets involved in routine tasks and minor decision making ▪ The team is accountable as they are responsible for their decision making ▪ This approach works for complex tasks Entrepreneurship & Intrapreneurship Entrepreneurship A person who takes risks and setups up his own business with a new idea or concept Intrapreneurship ▪ An employee who promotes innovation and new ideas within his existing organization ▪ Intrapreneurs bears less risk compared to entrepreneurs as investment is made by the Organization ▪ Many organizations are now encouraging Intrapreneurship within the organization as it leads to innovation by encouraging sharing of new ideas Professional Code of Ethics Professional A professional is a person having specialist knowledge through intense education and experience, [e.g. doctor](e.g. doctor), accountant, etc. Professional Code of Ethics for Accountants The ACCA Professional Code of Ethics and Conduct is based on the IFAC’s Professional Code of Ethics for Accountants, of the International Ethics Standards Board of Accountants (IESBA) . If a matter is not resolved by this Code, then lega

Jul 17, 2026

Uploaded by Violet