2 - Management, Leadership & Decision Making

Question 1

Describe Leaders
(4 Points)

Answer 1

~ More visionary as they see opportunities.

~ They look to motivate employees.

~ More entrepreneurial, as they look to take risks.

~ Focuses on the strategic gains of the business. E.g. The long term focus.

Question 2

Describe Managers
(3 Points)

Answer 2

~ Involved with planning, organising, communicating and coordinating resources.

~ Focused on the day to day running of the business.

~ They look to limit risk.

Question 3

What Are The 4 Management Styles?

Answer 3

~ Authoritarian / Autocratic.

~ Democratic.

~ Paternalistic.

~ Laissez-faire.

Question 4

Describe The Authoritarian / Autocratic Leadership Style
(6 Points)

Answer 4

~ No delegation.

~ Manager makes all decisions without consultation.

Makes Sense:
~ Business crisis.

~ If you have unskilled or new workers.

But:
~ Demotivating for employees.

~ Leading to low staff retention.

Question 5

Describe The Democratic Leadership Style
(6 Points)

Answer 5

~ Managers give employees greater involvement in decision making.

~ Delegation begins.

Makes Sense:
~ To increase motivation, leading to a feeling of empowerment.

~ Frees up managers time to make more important decisions.

But:
~ Could slow down decision making process.

~ Questions if employees are capable of making these decisions.

Question 6

Describe The Paternalistic Leadership Style
(4 Points)

Answer 6

~ Managers consult employees before making decisions based on the needs of the workforce.

Makes Sense:
~ Makes employees feel more involved.

~ To Increase motivation.

But:
~ Same issues as autocratic.

Question 7

Describe The Laissez-Faire Leadership Style
(5 Points)

Answer 7

~ Managers have no input in decision making.

~ Full delegation to subordinates.

Makes Sense:
~ Employees are highly skilled and competent.

~ When there are aligned incentives.

But:
~ Ineffective, if managers are putting off important
decisions.

Question 8

What Are The Internal Factors Influencing The Style Of Leadership?
(3 Points)

Answer 8

~ Expertise and experience of workforce.

~ Personal traits and power of leader.

~ Time frame associated with the decision.

Question 9

What Are The External Factors Influencing The Style Of Leadership?
(2 Points)

Answer 9

~ Environment of industry.

~ Nature of the industry.

Question 10

What Is The Tannenbaum Schmidt Continuum?

Answer 10

Scale to define how autocratic managers are.

Question 11

Describe The Tannenbaum Schmidt Continuum
(9 Points)

Answer 11

~ Left -> Managers give no freedom to subordinates in decision making.

~ Right -> Managers give lots of freedom and decision making to subordinates in decision making.

1) Tells -> Authoritarian style.

2) Sells -> Authoritarian style, but managers sell the decision making them feel valued.

3) Suggests -> Managers make the decision, subordinates are invited to discuss.

4) Consults -> Managers make tweaked decision, subordinates can discuss.

5) Joins -> Manager explain issues, all subordinates attempt to find solution, managers have final say.

6) Delegates -> Managers explain problem for subordinates to solve and make decision.

7) Abdicates -> Subordinates recognise problem and then solve it, full freedom to subordinates.