2) Managers, leadership and decision making (Newton)

Question 1

What are the 5 roles of a manager?

Answer 1

• Setting objectives (e.g. attendance, financial and growth)
• Analysing (e.g. analyse data for future decisions)
• Leading (e.g. human resources, staff attendance, duties, qualifications)
• Making decisions (e.g. rewards, expansion)
• Reviewing (e.g. appraisals, decision making)

Question 2

What is the role of a leader?

Answer 2

Decide on a direction for the firm and inspire & motivate staff to achieve aims that are set.

Question 3

What is the key distinction between a manager and leader?

Answer 3

A manager tends to focus on controlling resources and optimising processes, while a leader focuses on inspiring and empowering people to work together towards a common goal. Managers have subordinate but leaders have followers.

Question 4

What factors influence the type of management and leadership styles chosen?

Answer 4

• Company structure and the span of control
• Particular situation
• Organisational culture and structure
• Nature of the tasks involved
• Employees and their skills & abilities
• Group size
• Personalities and skills of managers and leaders
• Time frame

Question 5

What are the key aspects of an autocratic leadership style?

Answer 5

 Autocratic leaders hold onto as much power and decision-making as possible
 Focus of power is with the manager
 Communication is top-down & one-way
 Formal systems of command & control
 Minimal consultation
 Use of rewards & penalties
 Very little delegation

Question 6

When is an autocratic leadership style most likely to be used?

Answer 6

 Most likely to be used when subordinates are unskilled, not trusted and their ideas are not valued

Question 7

What are the key aspects of a democratic leadership style?

Answer 7

 Focus of power is more with the group as a whole
 Leadership functions are shared within the group
 Employees have greater involvement in decision-making – but potentially this slows-down decision making
 Emphasis on delegation and consultation – but the leader still has the final say
 Perhaps the most popular leadership style because of the positive emotional connotations of acting democratically.

Question 8

What is the potential trade-off with a democratic management style?

Answer 8

 A potential trade-off between speed of decision-making and better motivation and morale?

Question 9

When is a democratic leadership style most likely to be used?

Answer 9

 Likely to be most effective when used with skilled, free-thinking and experienced subordinates

Question 10

What are the key aspects of a paternalistic leadership style?

Answer 10

 Leader decides what is best for employees
 Links with Mayo – addressing employee needs
 Akin to a parent/child relationship – where the leader is seen as a “father-figure”
 Still little delegation
 A softer form of authoritarian leadership, which often results in better employee motivation and lower staff turnover,

Question 11

When is a paternalistic leadership style most likely to be used?

Answer 11

For example, it might be effective in healthcare, where a nurturing and supportive approach is valued. Additionally, in times of crisis or rapid change, the stability and guidance provided by paternalistic leaders can help employees navigate uncertainty.

Question 12

What are the key aspects of a laissez-faire leadership style?

Answer 12

 Laissez-faire means to “leave alone”
 Leader has little input into day-to-day decision-making
 Conscious decision to delegate power
 Managers / employees have freedom to do what they think is best
 Often criticised for resulting in poor role definition for managers

Question 13

When is a laissez-faire leadership style most likely to be used?

Answer 13

 Effective when staff are ready and willing to take on responsibility, they are motivated, and can be trusted to do their jobs.

Question 14

What does the Tannenbaum-Schmidt Continuum represent?

Answer 14

• The degree of authority used by the leader or manager.
• Area of freedom available to none-managers.

Question 15

What is on the left side of the Tannenbaum-Schmidt Continuum?

Answer 15

Manager-centred leadership

Question 16

What is on the right side of the Tannenbaum-Schmidt Continuum?

Answer 16

Subordinate-centred leadership

Question 17

What are the four main styles of leadership set out in the Tannenbaum-Schmidt Continuum

Answer 17

• Tells – leader identifies problems, makes decisions, and announces to subordinates; expects implementation
• Sells – leader still makes decision, but attempts to overcome resistance through discussion & persuasion
• Consults – leader identifies problem and presents it to the group. Listens to advice and suggestions before making a decision
• Joins – leader defines the problem and passes on the solving & decision-making to the group (which manager is part of)

Question 18

What is scientific decision making?

Answer 18

• Setting the objective
• Gather market research and interpret it
• Select the chosen option
• Implement the decision
• Review

Question 19

What are the advantages of a scientific approach.

Answer 19

• Provides a clear sense of direction for all involved in the business.
• Decisions are made and based on business logic.
• It is flexible – at any stage in making a decision, it can be reviewed and changed if needed .

Question 20

What is decision making based on intuition?

Answer 20

• The ability to understand something without the need for conscious reasoning; similar to a ‘hunch’
• Making decisions with a lack of evidence to prove it is the right thing to do
• It is mainly used by smaller businesses

Question 21

When is intuition decision making appropriate?

Answer 21

• This would be appropriate when a quick decision is necessary as it provides quick results when under a time scale.

Question 22

what should choosing scientific decision making or intuition be based upon?

Answer 22

• Speed of decisions
• Information available
• Size of business
• Predictability of situation
• Character of person or culture

Question 23

Decision trees