3.2 Managers, Leadership And Decision Making Flashcards
What is the difference between management and leadership?
Management is doing things right, leadership is doing the right things
What exactly is leadership?
Deciding on a direction for a company in relation to its objectives and inspiring staff to achieve those objectives
What is management?
Getting things done by organising other people to do it
What is an autocratic leadership style?
- leader makes decisions without reference to anyone else
- high degree of dependency on the leader
- can de-motivate staff
- can be valuable where decisions need to be made quickly
What is a democratic leadership style?
- encourages decision making from different perspectives
- consultative, asks before decisions are made
- it could help motivation among staff
- workers feel ownership of their ideas
- improves sharing of ideas
- can delay decision making
What is a paternalistic leadership style?
- employees are consulted but the leader makes decisions
- leader acts as a father figure
- close supervision but gains their staffs respect
- they are a type of authoritarian management. But the management looks at staff needs
- the staff recognises this which improves team moral
What is the Laissez-fairs leadership style?
- means ‘let it be’ is the shared responsibility
- can be useful in business where creative ideas are important
- can be motivational as people have control over their own working lives
- can make coordination/decision making harder
- relies on good team work
What is the Tannenbaum Schmidt Continuum?
This is a model that highlights the range of different management styles that may be adopted ranging from a ‘tell’ approach to one that involves delegation
What are the 4 main leadership styles in the Tannenbaum Schmidt continuum?
Tell
Sell
Consult
Joins
What does the Tannenbaum Schmidt continuum show?
The model highlights that there are a range of styles rather than categorising management and leadership simply in terms of either authoritarian and democratic
When can you use the Tannenbaum Schmidt continuum?
What needs to be considered?
When you’re discussing the influence of different management and leadership styles
- advantages / disadvantages
- factors which determine the style chosen
- when a style might be appropriate in different situations
What is a Blake Mouton grid?
It highlights how interested a manager / leader is in the people or the task
How do decision trees work?
- Draw a square to represent the decision
- Draw out lines from square and write available options. Add a do nothing line
- Consider the result at end of each line (circle)
- Draw lines to the right representing possible
outcomes - At the end of the line write the financial result of each outcome
- Calculate the expected values for each outcome by MULTIPLYING the value of the OUTCOME by the PROBABILITY
- Once net expected value has been calculated, add to diagram and cross out any rejected decisions
What is a stakeholder?
This is a party that has an interest in a company and can either affect or be affected by the business
Give 4 examples of internal stakeholders
- Employees
- Managers
- Board of directors
- Investors
Give three examples of external stakeholders
- Suppliers
- Creditors
- Public groups
What is opportunity cost?
The benefit of the alternative option which is sacrificed when making the decision
Define interest rate
The return for saving or the cost of borrowing
What are the two types of decision a business will make?
- Scientific ( decision trees )
- Intuition
What counts as a scientific decision?
- supported by quantifiable evidence
- encourages logical thought process
- this may require expensive data/equipment
- time consuming
What counts as an intuitive decision?
- allows for quick decision making
- encourages innovation and creativity
- difficult to justify
- reliant on experience and expertise
Define stakeholder mapping
This allows a business to be able to see the interest people will have in something as well as the power they have to control it
What is the ‘keep satisfied’ section of stakeholder mapping?
- potentially influential group with low interest but have high power
What is the ‘manage closely’ area of the stakeholder mapping?
- most important group of stakeholders, are the most interested and have the most power
What does the ‘monitor’ area of stakeholder mapping mean?
Neither powerful or have high interest in the project, include the minimum amount of effort
What is the ‘keep informed’ area of the stakeholder mapping?
- low power but high interest
- secondary stakeholders, keeping them up to date with developments, can develop a good relations
