3.2 managers & leadership Flashcards
roles of a manager
- set objectives
- analyse + review performances
- make decisions
- inspire + lead others
leaders Vs managers
leaders:
~ look to the future
~ willing to break tradition + innovate
~ have a vision
managers:
- focus on present
- maintain things the way they are
implement the vision
laissez faire leadership
- leaders are not part of the decision making process
- works best w highly motivated & able staff
- could lead to conflicts between members of staff over certain roles, leader also has no control over final product, decisions may take too long to be made
authoritarian/ autocratic
- leader has full power/ control & makes all the decisions
- effective when there is a need for quick decisions to be made & staff need to be guided in right direction
- may be a problem w creative employees e.g. good ideas may be disregarded = leads to demotivation
democratic leadership
- balance of leadership between group and leader
- increased employee engagement & motivation as they feel valued
- may demotivate employees if all opinions are not valued, longer time spent making decisions - not ideal for when you need to make quick decisions
decentralisation
decision-making is spread out to include more managers in hierarchy
factors used to make decisions
- experience & intuition
- scientific data
- hunch
decision making using scientific data
pros
- decisions based on science and logical thinking
- more people involved in decision making process
- clear direction based on objectives and getting people involved in decision making
types of data:
real time data from loyalty schemes & card/mobile payment apps - based on transactions and preferences
real time changes in the market e.g. competitor price comparison
using intitution & experience
- used by smaller businesses & those who have lots of experience
using hunches
- used bcs of problems with scientific data e.g.
- too much data to be collected & time consuming
- data is flawed, unreliable
potential risks of making the wrong decision
- could loose money or not make as much as expected
- negative impact on reputation
- could lose good staff if not successful or demotivate them
- could influence future decisions
- resources not used effectively
potential rewards of making the right decision
- make more money than anticipated
- improve reputation
- attract good staff & motivate them in the future
- future business from potential customers
key influences on decisions
- business objectives
- organisational structure - who makes these decisions
- attitude to risk - business culture
- availability + reliability of data
- external environment - changes fast
opportunity cost
giving up an option at the expense of the other, measures the cost in terms of the next best forgone
decision tree calculations + symbols
expected value = ( prob x estimated value 1) + ( prob x estimated value 2)
net gain = expected value - initial cost
squares - decisions
circles - uncertain outcomes
what is a stakeholder
person or group who have an interest in the business and its performance e.g. employees, owners, community, customers, govn, suppliers, shareholders, creditors
stakeholder mapping
high power + interest = manage closely e.g. owners, managers
-high power, low interest - keep satisfied e.g. shareholders have high power but little interest in day 2 day running of business
- high interest low power = keep informed - employees
- low interest + low power = monitor - competitors
how do you manage the relationship between internal & external stakeholders
using a combo of communication + consultation
communication = transfer of information between people
consultation = talking to interested parties to explain developments + issues to gather views and ideas which can contribute to communication process
pros + cons of stakeholder mapping
+ can be used to see who is influenced by business + the relationships between them
+ can be used to help improve relationships w stakeholders + prevent potential problems from arising btwn stakeholders & the business
+ can help to make major decisions + publish information
- not useful when there are only a few stakeholders or too many as there may be conflicting interests
- it is only a suggestion not a solution to long term problem
