3.2 leadership Flashcards
the role of managers
planning
organising
controlling
directing
planning
setting targets
estimating resources needed
budgeting
forecasting
organising
coordinating teams
allocating resources
giving instructions to subordinates
directing
giving guidance and instruction
motivating employees
delegating authority
controlling
reporting on performance eg financial reporting
monitoring employee performance eg conducting appraisals
enforcing company policy and rules
monitoring targets and budgets
two theories involved in management and leadership
trait theory
behavioural theory
trait theory
the belief that leaders and managers hold certain traits that distinguish them from other people
there is disagreement about the exact traits that constitute a succesfull leader
one argument against this theory is that successful leaders have been found to possess very different traits from one another
behavioural theory
the behavioural theory of leadership suggests that there is an appropriate style of management or leadership determined by the context, situation and nature of the task
there are a number of theories that explore behavioural management and consider different styles based on a number of different factors
eg task vs relationship styles (the blake mouton grid) or the extent to which a manager tells employees or listens to their opinions (the tannenbaum-schmidt continuum)
what is the blake and moulton grid
identifies a number of approaches to leadership based on the extent to which a manager is focused on their concern for production and their concern for people
what are the 4 categories on the blake moulton grid
impoverished
country club
team leader
produce to perish
what goes on the x axis of a blake moulton grid and what goes on the y axis
x= concern for production
y= concern for people
where is impoverished on the blake moulton grid
low concern for people
low concern for production
(bottom left)
where is country club on the blake moulton grid
low concern for production
high concern for people
(top left)
where is team leader on the blake moulton grid
high concern for production
high concern for people
(top right)
where is produce to perish on the blake moulton grid
high concern for production
low concern for people
impoverished
perhaps focused on self and not leading the organisation
dissatisfcation and disorganisation
an ineffective manager
country club
a relaxed working environment
manager is concerned with relationships and motivation of employees
task may not get done
team leader
high focus on both
in theory this should he highly successful as the employees needs should he aligned to those of the organisation
employees feel involved and have a stake in the success of the business
produce or perish
authoritatrian
driven by targets and getting the task done
cares little for well-being or feelings of employees
what can the blake moulton grid be used to do
help managers reflect on their own practice and identify strategies to improve their management/leadership skills
what is the tannenbaum schmidt continuum
shows where a managers approach lies on a continuum ranging from the manager imposing strict authority to one extreme, through to employees having full freedom to act as they choose at the other extreme
what can the tannenbaum schmidt continuum be used for
to make choices about which approach to adopt, but no advice is given on how the approach should be chosen based on the circumstances
stages on the tannebaum schmidt continuum
(use of authority by leader) ( autocratic boss-centred leadership)
tells
sells
suggests
consults
joins
delegates
abdicates
(area of freedom by subordinates) ( empowered subordinate-centred leadership)
what is seen on the far left of the tannebaum schmidt model
authoritarian leader top down decisions
what is seen on the middle of the tannebaum schmidt continuum
leader gains ideas and opinions from team before making the decision
what is there on the middle-right of the tannenbaum schmidt continuum
ideas and opinionns valued by leader and decisions made as ateam
what is seen on the far right of the tannebaum schmidt continuum
laissez-faire leadership style
different leadership styles
auotocratic (auothoritarian)
democratic
laissez-faire
advantages of autocratic (authoritarian) leadership
focused on getting the task done
high levels of control suitable for unskilled workforce
speeds up decision-making process- important in times of crisis
suitable for implementing a clear vision held by the leader
disadvantages of autocratic (authoritarian) leadership
can lead to low levels of ,otivation if employees dont feel respected or valued
no opportunity for employees to be involved in decision making
no opportunity to collect ideas and opinions of the workforce that might be valuable
employees might not feel as though they have a stake in the business
advantages of democratic leadership style
develops a team spirit- more opportunity for employees to ‘buy in’ to the task if they feel they have had a say
allows a manager to collect ideas and opinions from the whole workforce
disadvantages of democratic leadership style
decision making can take a long time when done by committee
employees may not see the ‘bigger picture’ and vote for decisions that benefit them
advantages of laissez-faire leadership
allows employees autonomy to make their own decisions
often leading to higher levels of creativity and motivation amongst workers
disadvantages of laissez-faire leadership style
lack of control over the workforce- deadlines and targets might be missed
tasks may not be coordinated very well
what factors should you take into account when trying to identify the best approach to management/leadership
labour force
nature of task
timescale
personality and tradition
how are decisions made
on both quantitative and qualitative information
use both scientific techniques (data, logic, rationale) and the intuition of the manager (experience and hunches)
what is the decision making process
set objectives
gathering information
choosing the course of action
implementation
review
how is gatheuing info involved in decision making
to make the most appropriate decision factors such as risk, reward and uncertainty will be taken into account
how does choosing the course of action affect the decision making process
process is key if decisions are to be made scientifically
however managers are just as likely to use their own experience and intuition
a decision might be strategic or tactical
how is review involved in the decision making process
a range of techniques might be used to evaluate the success of a decision or porject eg financial ratios for the triple bottom line
4 key decision making factors
risk
reward
uncertainty
opportunity cost
risk
the chance of an occuring misfortune or loss
risk is calculatrd by multiplying the extent of the impact by the probability of its occurence
in business risk generally refers to financial loss
reward
generally translates into greater revenue and profit
sometimes a risk might be worth if taking the reward is substantial
eg the first to enter a new market or secure a patent on a new product
uncertainty
very little is certain in business
managers have to question the reliability of the information (scientific or hunches) that a decision is based upon
opportunity cost
the next best opportunity forfeited and all things remaining equal (ceteris paribus)
managers must always make decisions to gain the best returns fron the resources they have available
scientific decision making (data)
decisions based on data such as financial forecasts or using business tools such as breakeven analysis or investment appraisal
intution or hunch decision making
decision based on experience and ‘gut feeling’ without havig supporting data
advantages of scientific decision making
data can help reduce the risk in decision making and help identify the likely outcome
data can help compare alternative options
disadvantages of scientific decision making
sometimes data can be hard to collect or very expensive to collect especially for small businesses
sometimes data is nit available out of date or unreliable
advantages of decisions based on experience
intuition might come from the experience of the manager and this is useful when making qualitative decisions such as the charachter of a new employee or the potential success of a new marketing campaign or brand name
disadvantages of decisions made based on experience
without evidence in the form of data decisions based on intution can be high risk
decision trees
a model that represents the likely outcomes for a business of a number of courses of action showing the financial consequences of each
benefits of decision trees
clarifies possible courses of action
adds financial data to decisions
makes managers account for risk
limitations of decision trees
probabilities are often estimated
does not consider qualitative information
does not take into account dynamic nature of business
what factors influence decision making
the objectives and mission of the business
ethics
level of risk involved
the external environment including competition
resource constraints
how do ethics influence decision making
using a ‘moral compass’ to guide decisions
how does the level of risk involved influence decision making
some managers and businesses are more risk adverse than others
how does the external environment including competition influence decision making
most decision making models dont take into account these factors that are constantly changing
how does resource constraints influence decision making
a business can only make decisions if they have the resources available (labour, capital, knowledge) and this is where opportunity cost comes in
what are stakeholders
groups or individuals who have an interest in a busines
internal stakeholders
employees
managers
shareholders
external stakeholders
suppliers
customers
local community
government agencies
interests of employees and managers
good income
job security
safe working conditions
opportunity for development/promotion
meet their tragets
interests of shareholders
return on investment
increased value of shares
ethical business practices
growth of the company
interests of stakeholders
regular trade
fair prices
paid on time
interests of customers
reliable products
good service
value for money
clear and fair pricing
interests of local community
employment
investment in local area
no pollution
interests of government agencies
abide by legislation and rules
fair and open trade
employment opportunities
tax
what is the concept of managing stakeholder expectations closely linked to
social responsibility
how does meeting the needs of stakeholders encourage ethical practices
by reducing the negative impact of a business’ decisions on a third party
disadvantages of meeting stakeholders needs
expensive
time consuming
can compromise profitabilility in the short term
what major conflict do business have to do with stakeholders
focusing on the needs of shareholders or the wider stakeholder groups
what sis stakeholder conflict
sometimes stakeholder interests are aligned but usually satisfying one set of needs can lead to conflict elsewhere
nusinesses should consider why conflicts might exist and what the business could do to resolve these conflicts
what is a stakeholder map
a tool to assess the interest and power of stakeholders to make decisions about how to manage them
what is on the x and y axis of a stakeholder map
x= interest of stakeholders
y= influence/power of stakeholders
where s ‘least important c’ on a stakeholder map
low interest of stakeholders
low influenve/power of stakeholders
bottom left
where is ‘meet their needs A’ on a stakeholder map
low interest of stakeholders
high influence/power of stakeholders
top left
where is ‘key player B ‘ on a stakeholder map
high interest of stakeholders
high influence/power of stakeholders
top right
what is ‘keep informed D’ on a stakeholder map
high interest of stakeholders
low influence/power of stakeholders
bottom right
meet their needs A
high power but low interest
may be key shareholders who are only interested in return on investment
satisfy needs but try to increase their interestt and involvement in the business
Key player B
may be key customers who account for a significant percentage of sales
keep them happy, consult and involve them in key decisionns
least important C
minimal effort
make sure information is available to this group through newsletter or website
keep informed D
perhaps local residents who are concerned with the business actions
communicate key decisions only
possibly consult on low impact decisions
how are stakeholder maps useful
useful decision making tools to generate discussion and give structure to decision making
however they dont provide businesses with clear solutions on how to manage stakeholders
how can the likelehood of stakeholder conflict be reduced
through effective communication and in some circumstances consultation
what are the communication strategies used ranging from high power/high interest to low power/low interest
partnership
participation
consultation
‘push’ communication
‘pull’ communication
partnership
decisions taken jointly
implement aactions together
shared responsibility
participation
extensive two ways communication
given responsibility for certain decisions
consultation
collect views/opinions
share ideas as proposals
‘push’ communication
inform
one way communications
emails newsletters mailshots
‘pull’ communication
information available for stakeholders if they choose to access eg website
what are internal factors that influence stakeholder relationships
management and leadership
objectives
size/ownership
external factors that influence stakeholder relationships
market conditions
stakeholder power
government policy
how does management and leadership influence stakeholder relationships
differing leadership styles will determine how managers view employees
eg the Blake and Moulton grid
how does objectives influence stakeholder relationships
profit objectives will be more aligned to shareholder interests
growth obectives may be more aligned with employees interests
how does size/ownership influence stakeholder relationships
a sole trader will not have pressures of meeting shareholder expectations and may not have as big an impact on the local community
how does market conditions influence stakeholder relationships
demand and the competitiveness of a market will change the piroirities of a business
how does government policy influence stakeholder relationships
a business will have to meet its legal requirements no matter how this impacts its stakeholders
eg new employment legislation
