2.1 Understanding management, leadership and decision-making

Question 1

What do managers do

Answer 1

• Set objectives
• Organise
• Motivate and communication
• Measure
• Develop people

Plan, Organise, Direct and control

Question 2

Types of management and leadership styles

Answer 2

• Autocratic leaders: makes decisions without consulting others
• Democratic leaders: makes the final decision but includes others in the process
• Laissez-faire leaders: allow team members freedom
• Charismatic leaders: believe they can do no wrong
• Paternalistic leaders: consult and try to make decisions in the best interest of all
• Bureaucratic leaders: who do exactly by the rules

Question 3

Tannenbaum and Schmidt’s continuum

Answer 3

Left side
- Tells
- Sells
- Consults
- Shares
Right side

Question 4

Blake and Mouton’s grid

Answer 4

High Concern for People, Low Concern for Production
- Country club management

High Concern for People, High Concern for Production
- Team management

Low Concern for People, Low Concern for Production
- Impoverished management

Low Concern for People, High Concern for Production
- Authority-Compliance management

Middle Concern for both
- Middle of the road Management

Question 5

Democratic leadership style

Answer 5

• Encourages participation
• Makes use of delegation
• Two-way communication
• Decisions made on a basis of decisions agreed by the majority

Question 6

Authoritarian leadership style

Answer 6

• Decision making kept among the managers
• Leader retains control throughout
• One-way communications downwards from leader to subordinates
• Useful when quick decisions are required
• Supervision required

Question 7

Laissez-faire leadership style

Answer 7

• Leader has a peripheral role
• Staff manages business
• Uncoordinated delegation occurs
• Can encourage production of highly creative work by subordinates
• May bring the best out of highland professional or creative groups

Question 8

Influences on the choice of leadership style

Answer 8

• The individual: personality, skills, preferences
• Nature of the industry: some industries require a high degree of creativity
• Business culture: business traditions may determine the style adopted