IBDP Business Management Human Resources Chapter 4 Notes

leadership and management

STUDY NOTES FOR BUSINESS MANAGEMENT – HUMAN RESOURCES CHAPTER 4 – Leadership and Management

These notes have specially been curated by expert teachers to simplify and enlighten concepts given in IB Business Management HL. The notes are comprehensive in nature and are sufficient to study the chapter in depth, One need not look for other resources beyond the notes provided on our website which can be accessed for free.

Business management IBDP is a part of group 3 Individuals and the Society of the IB curriculum. The IBDP Business Management course has been devised for imparting knowledge and understanding of different theories of Business Management and application of various tools and methods. It enables the students to analyze and evaluate business activities at all levels- local, national, or international, It also helps in developing holistic understanding of the business environment today which is complex and fast changing.

The subject covers important characteristic of business organization and business functions of human resource management, finance and accounting, marketing, and operations management. The purpose of the course is to help students develop skills that enable them to think critically and make the right decisions after carefully evaluating and analyzing the issue at hand. It also aims at developing the understanding of the importance of innovation and exploring business from different cultural perspectives.

The chapter on Leadership and Management explains how “management is the art of getting things done through people” – Mary Parker Follet. Their five functions of management are organizing, planning, staffing, directing, and controlling. Henri Fayol, Charles Handy and Peter Drucker provide three perceptions to the functions of management and give us three different theories. Next, we understand who a leader is and the different types of leadership styles which are autocratic, paternalistic, democratic, laissez-faire, and situational.


We examine the four different theories of leadership- Likert’s 4 Leadership styles which consists of exploitative authoritative, benevolent authoritative, consultative, and participative. Fiedler’s Contingency model suggests that the effectiveness of a leader depends on the situation. Blake and Mouton managerial grid is the third theory of leadership that lays emphasis on balancing and not over stressing on one area which might lead to poor results. The last theory of leadership The Tannenbaum and Schmidt leadership continuum that highlights the relationship between the authority of the leader and the freedom of the team. Finally, we examine the differences between management and leadership at the end of the chapter.