2.1 management, leadership + decision making Flashcards
define management
planning, organising, directing and controlling all or part of a business enterprise.
define leadership
ruling, guiding, and inspiring other people within an organisation in pursuit of agreed objectives.
what are the 4 basic functions of management?
- planning
- organising
- directing
- controlling
features of planning
- looking into the future
- setting objectives and targets for the business for their area
- conducting analysis to gather forecasts of key information such as: costs / revenues, incomes, competitors and prices
- drawing up plans for functional areas within the business
(marketing, finance, HR and operations) - estimating the likely resource needs for the proposed plan
features of organisation
Management must assemble the resources that they need to carry out the actions set out as part of the planning process
features of directing
Motivating and communicating with other employees to oversee their behaviour and ensure everyone is working towards the same goals.
features of controlling
- setting standards using company’s objectives
- reviewing and reporting performance.
This enables managers to identify areas of weakness and implement corrective action. Can be done by:
1. Financial reports - are they on track to make the targeting level of profit?
2. Employee performance - are the workers productive?
3. Social performance - how ethical is the business?
Mintzberg’s roles of management (1990)
- He set out the 10 roles performed by managers within businesses -> argued that management is not about functions but about what managers do.
what is interpersonal management?
involves managing through other people
- Figurehead
- Leader
- Liaison
what is informational management?
involves processing information
- Monitor
- Disseminator
- Spokesperson
what is decisional management?
uses information to make decisions
- Entrepreneur
- Disturbance handler
- Resource allocator
- Negotiator
what is a Figurehead? (interpersonal)
- represent their colleagues
- considered to have authority
- carry out social, ceremonial and legal responsibilities
- inspiring
what is a Leader? (interpersonal)
- creates and maintains an effective working environment
- motivates and develops more junior employees
- manage performance and responsibilities of team members
what is a Liaison? (interpersonal)
- communicate with internal and external contacts
- need to network effectively to gather information
what is a Monitor? (informational)
- search for internal and external information relevant to the business
- looking for changes in business environment
- always look after their team’s performance and welfare
what is a Disseminator? (informational)
- a central communication role
- passing on valuable information to others in the organisation
what is a Spokesperson? (informational)
- represent and speak for their organisation
- transmit information about the organisation and its goals to the people outside it
what is an Entrepreneur? (decisional)
plans and initiates changes in the business
what is a Disturbance Handler? (decisional)
- deals with unexpected crises
- try to control and solve disputes
what is a Resource Allocator? (decisional)
- decides the most effective use of an organisation’s resources
- finance, staff and capital equipment
what is a Negotiator? (decisional)
- engage in negotiations inside and outside the business
what are the 4 different leadership styles?
- Authoritarianism
- Democratic
- Laissez-faire
- Paternalistic
features of autocratic:
-> Leader makes decisions without reference to anyone else
-> High degree of dependency on the leader
-> Can create de-motivation and alienation
of staff
-> May be valuable in some types of business where decisions need to be made quickly and decisively
-> Tells you what you are to do
features of democratic:
- > May help motivation and involvement
- > Workers feel ownership of the firm and its ideas
- > Improves the sharing of ideas and experiences within the business
- > Can delay decision making
- > Decision making from different perspectives
features of laissez-faire:
- > Let it be’ – the leadership responsibilities are shared by all
- > Can be very useful in businesses where creative ideas are important
- > Can be highly motivational, as people have control over their working life
- > Can make coordination and decision making time-consuming and lacking in overall direction
- > Relies on good teamwork
- > Relies on good interpersonal relations
- > Gives workers autonomy (freedom)
features of paternalistic:
- > Leader acts as a ‘father figure’
- > Makes decision but may consult
- > Believes in the need to support staff
- > Dominant figure that decides what’s best for employees
Leadership style is influenced by:
- > type of labour force
- > nature of task and timescale
- > personality of leader
TRAIT THEORY:
Certain personality traits differentiate a good leader from others.
BEHAVIOUR THEORY
- Focuses on how an individual behaves in a managerial role.
- Tries to identify the correct way to act instead of personality traits
- Consideration- wellbeing of workers
- Initiating structure- defining/ planning work- getting the job done
what are the 2 types of managers?
theory:
X - average worker is lazy/ dislikes work- workers need to be controlled/ directed- centralised organisation + exercise of authority
Y - most people enjoy work, workers will take responsibility + organise themselves, decision making can be delegated
Blake Mouton grid (see image)- what are the 5 sectors + x/y axis?
Y axis- concern for people
X axis- concern for results/ production
- country club management
- team management
- middle-of-the-road management
- impoverished management
- produce or perish management
Impoverished management
Laissez-faire style; minimal effort on management; hoping to avoid blame for errors.
low concern for people/ results
Country club management
focuses on creating safe, comfortable working environment; minimal conflict
high concern for people
low concern for results
produce-or-perish management
autocratic style. workers have to complete task, nothing else.
low concern for people
high concern for results
Team management
staff closely involved in decision making + feel valued
high concern for people + results
middle-of-the-road management
compromises made to achieve acceptable performance; thought to be less effective leadership style
mid concern for people + results
what is productivity?
Measuring how many inputs are needed to create 1 unit of output
A business is more productive when they use less inputs to produce 1 unit of output
The Tannenbaum-Schmidt Continuum (see graph)
Shows where a manager’s approach to decision making lies.
It runs from the manager making decisions and just announcing it to the company
Tell- Sell- Consult- Joins
+ves and -ves to management styles
Autocratic: Decisions are made quickly and decisively BUT Can create de-motivation and alienation
Democratic: May help motivation and involvement BUT Can delay decision making
Paternalistic: Believes in the need to support staff BUT Leader may ignore suggestions
Laissez Faire: Allows creative freedom BUT Can be time-consuming and lacking in overall direction
what is delegation?
Passing decision making responsibility down to junior employees
