2.managers Leadership And Decsion Making Flashcards
Leadership
A relationship through which one person influence the other behaviour or actions of other people
Traditional view
Command and control ,decision, making
Modern view
Inspiring employees, creating a vision, shape, and core, values, and culture, building effective teams
Why leadership is increasingly important in business
Changing organisational structures, flatter and greater delegation, teamwork, and focus on quality assurance
Rapid change becoming a constant feature of business life, skills of leadership and management, increasingly important
Strategic leaders
People who influence or control the corporate strategy of a business often identified with the strategy and occurs both in small firms and large corporate
Leaders
Inspire people build relationships take risks, have followers
Managers
And act the plan use authority, man, risks and have subordinates
3 traditional levels of management
Senior management, middle management and junior management
Authoritarian
Focus of power is with the manager, communication is top down the one way, formal systems of command and control very little delegation and use of rewards and penalties 
Paternalistic
Leader decide what is best for employees
Addresses employee needs
Still little delegation
Soft form of authoritarian leadership
Democratic
Focus of power is more of the group as a whole
Leadership functions are shared within the group
Employees, have a great involvement in decision-making
Emphasis and delegation and consultation
Trade off between speed of decision-making and better motivation
Laissez faire
Leader has little input into day-to-day decision, making
Conscious decision to delegate power
Managers and employees have freedom to do what they think is best
Effective when staff already and willing to take on responsibilities
McGregor theory x and y
Theory X managers, average worker is lazy and dislikes work workers need to be controlled and directed centralised organisation
Y most people enjoy work workers will take responsibility and organise themselves
Why modern business leadership is moving away from autocratic styles
Changes in society values
Better educate workforce
Focus on need for soft HR skills
Greater workplace legislation
Tannenbaum and Schmidt
A continuum of leadership behaviour
Represents the range of action related to the degree of authority, used by the manager and aerial freedom available to non-managers
Tannenbaum Schmidt styles
Tell – lead identifies problem, makes decision announces of subordinate
Sells-leader still makes decision by tempted, overcome resistance through discussion
Consult – lead identifies problem and present it to the group. Listen to device and suggestions.
Joins – lead identifies the problem and passes on the solving decision making to the group
Factors affecting leadership style
Personal value systems
Manager experiences
Confidence in subordinates
Feelings in security
Nature of the best problems
Type of organisation
Net gain
Valley to be gained from taking a decision calculate by adding together the expected value of each outcome and deductive cost such with the decision 
Advantages of using decision trees
Choice and set out in a logical way
Potential options and choices are considered at the same time
Likely costs are considered as well as potential benefits
Easy to understand and tangible results
Disadvantages of using decisions trees
Probabilities are just estimates
Uses quantitive data only ignores qualitative
Assignment of probabilities, and expected values, prone to bias
Doesn’t reduce the amount of risk
Hunch
Based on intuition, got feeling an experience, and it’s quick, but hard to justify for business decisions involving significant risk
Scientific decision
Based on data and analysis, downside is time-consuming, costly, no guarantee of a right decision
Increasingly common and automated supported by big data and data analytics
Key influences on business decisions
Business, objectives and budget
Organisational structure
Attitude to risk
Availability and reliability of data
External environment
Opportunity cost
The cost of missing out on the next best alternative the benefits that could have been gained by taking a different decision
