Business - Unit 2: Leadership and Management Flashcards
What is leadership?
Leadership is the way in which one person influences the behaviour of actions of other people.
What is the role of a leader?
Inspiring employees
Creating a vision and a clear sense of purpose for a business
Shaping the core value and culture of business
Building effective teams
What is the role of Management?
Implement the strategy
Coordinate resources
Use their authority to take decisions
Manage risks
Have subordinates
Authoritarian leadership style
Focus of power is with the manager
Communication is one way
Very little delegation
Paternalistic leadership style
Leader decides what is best for employees
Links with Mayo- addressing employee needs
Akin to a parent/child relationship
Still little delegation
A softer form of authoritarian leadership
Democratic leadership style
Focus of power is more with the group as a whole
Leadership functions are shared within the group
Employees have greater involvement in decision making
Emphasis on delegation and consultation
Laissez–faire leadership style
Leader has little input into day to day decision making
Conscious decision to delegate power
Managers/employees have freedom to do what they think is best
Effective when staff are ready and willing to take on responsibility
Why has there been a move away from the traditional leadership style autocratic?
Changes in society’s values
Better educated workforce
Focus on need for soft HR skills
Changing workplace organisation
Changing workplace legislation
Pressure for greater employee involvement
Tannenbaum Schmidt Continuum
Tell
Sell
Consult
Joins
Impoverished Management
Laissez–faire style
Minimal effort
Hoping to avoid blame for errors
Country Club Management
Focus on creating safe, comfortable working environment
Minimal conflict
Task Management
Autocratic style
Workers have to complete tasks
Team Management
Staff closely involved in decision making and feel valued
Middle of the Road Management
Compromise made to achieve acceptable performance
thought to be the less effective leadership style
What are the axis on Blake Mouton Grid?
People- Y axis
Task- X axis
McGregor’s Theory X
Assumes that people dislike work and must be coerced, controlled and directed toward organisational goals
McGregor’s Theory Y
Managers usually place a lot of trust in each member, which allows employees to exercise freedom and share ideas confidently
What influences decision making?
Business objectives/budgets
Organisational structure
Attitude to risk
Availability
Reliability
External Environment
Hunch decision making
Based on intuition and previous experience
Hard to justify for business decisions involving significant risk
Scientific decision making
Based on data and analysis
Time consuming
Costly
Common and automated supported by big data and data analysis
Why is scientific decision making becoming more popular?
More widespread availability of data
Greater sophistication of data analytics and skills
What does opportunity cost mean?
The cost of missing out on the next best alternative
Benefits of Decision Trees
Choices are set out in a logical way
Potential options and choices are considered at the same time
Use of probabilities enables the ‘risk’ of the options to be addressed
Likely costs are considered as well as potential benefits
Drawbacks of Decision Trees
Probabilities are just estimates
Uses Quantative data only
Decision making technique doesn’t necessarily reduce amount of risk
Shareholders/owners interest in the business
Dividends
Managers/employees interest in the business
Job security
Good pay
Promotion/bonuses
Customers interest in the business
Good products
Good service
Suppliers interest in the business
On time payments
Lower payable payable days
Banks and other finance interest in the business
Interest/loans
Pay back on time
Government interest in the business
Tax
Jobs
Society interest in the business
Environmental and ethical contribution
Stakeholder Mapping Y axis
Stakeholder power
Stakeholder Mapping X axis
Stakeholder interest
Stakeholder- High power and low interest
Keep them satisfied
Stakeholder- Low power and low interest
Communicate only when necessary
Stakeholder- High power and high interest
Key Players
Take notice of them
Engage directly with them
Stakeholder- Low power and high interest
Communicate regularly with them
