Chapter 6 - Management Skills 1: Leading

Question 1

What is leading

Answer 1

A management skill that encourages people to look towards a specific goal

Question 2

What four things must a strong leader be able to do

Answer 2

1. Clearly communicate business goals to staff
2. Find ways to motivate employees to achieve these goals
3. Set an example to employees
4. Delegate tasks to staff

Question 3

What are the three leadership styles

Answer 3

1. Autocratic
2. Democratic
3. Laisser-faire

Question 4

What is autocratic leadership

Answer 4

A management style where the manager makes all the business decisions without input from employees

Question 5

What are four features of autocratic leadership

Answer 5

1. Authority - leaders have complete power and control in an organization
2. Decision making - leaders do not consult with employees when making a decision
3. Trust - they do not trust employees and may believe that they are lazy and try to avoid work
4. Motivation - leaders use threats and punishments to motivate their employees to work harder

Question 6

Discuss three advantages of autocratic leadership

Answer 6

1. Quick decision making - decisions can be made quickly as the leader does not have to consult with others, therefore the business does not miss out on opportunities in the market.
2. Quick task completion - the leader gives orders to staff to ensure that tasks are completed quickly and are not missed.
3. Improved productivity - employees work hard as they know they are being supervised by management. This can improve productivity in the workplace.

Question 7

Discuss three disadvantages of autocratic leadership

Answer 7

1. Management stress - the leader makes all business decisions and does not delegate tasks. This can lead to management stress and burnout.
2. Staff motivation - motivation levels are low as staff follow orders and jobs are not delegated to them. This can lead to higher absenteeism and staff turnover.
3. Industrial action - employees feel undervalued, which damages the relationship between management and employees. This may lead to increased industrial action

Question 8

What is democratic leadership

Answer 8

A management style that encourages employees to participate in decision making in the business

Question 9

What are four features of democratic leadership

Answer 9

1. Authority - managers delegate tasks to employees. Ultimate responsibility for all tasks still lies with the manager.
2. Decision making - managers include employees when making business decisions
3. Trust - leaders trust their employees and empower them to make decisions on behalf of the business
4. Motivation - employees are motivated as they feel valued when they are delegated tasks and are involved in decision making within the business

Question 10

Discuss three advantages of democratic leadership

Answer 10

1. Increased intrapreneurship - employees are willing to come up with ideas that can help the business to increase sales or decrease costs
2. Future promotion - delegation and empowerment help employees to develop new skills and knowledge. When promotions arise in the business they can apply for these roles.
3. Employee motivation - employees have high levels of motivation as they feel valued. This can lead to higher productivity levels among staff.

Question 11

Discuss three disadvantages of democratic leadership

Answer 11

1. Slow decision making - decision making is slow as managers consult with their employees before making major business decisions
2. Frustrated employees - employees feel frustrated if their ideas are not incorporated into business decisions. They may decide not to contribute their ideas in the future.
3. Management resentment - some managers may resent empowering employees as it reduces their control in the business.

Question 12

What is Laisser-faire leadership

Answer 12

A management style where the leader takes a hands off approach to employees. They allow them to make decisions that they believe are the best interest for the business.

Question 13

What are four features of a Laisser-faire leadership

Answer 13

1. Authority - managers set up goals for employees and allow staff to decide how best to achieve these goals
2. Decision making - managers empower their employees to make decisions on behalf of the business.
3. Trust - management outlines the business objectives and trusts employees to work independently without close supervision
4. Motivation - employees are highly motivated under this style of leadership as they feel empowered to achieve the firms goals

Question 14

Discuss three advantages of Laisser-faire

Answer 14

1. Employee motivation - motivation is high among employees as they feel trusted by management. They work hard for the benefit of the business and to achieve the firms goals.
2. Improved skills and knowledge - delegated work helps employees to improve their skills and knowledge. This prepares them for any future promotions in the business.
3. Intrapreneurship - employees use their intrapreneurial skills to help develop new processes. This can help to reduce business costs or increase sales.

Question 15

Discuss three disadvantages of Laisser-faire leadership

Answer 15

1. Reduced productivity - some employees may take advantage of the lack of regular management supervision. This can create tension among team members and reduce business productivity.
2. Poor decisions - some employees can make poor decisions that damage the firms reputation or result in a business missing an opportunity in the market.
3. Poor industrial relations - management blames employees for mistakes made or for not achieving targets. This can lead to poor industrial relations between management and staff

Question 16

What is delegation

Answer 16

It involves assigning tasks to another person e.g. a manager delegates tasks to a subordinate.

Question 17

What are the three requirements for delegations

Answer 17

1. Open communication - delegated tasks and the required standards should be clearly communicated to employees.
2. Employees skills and experience - management must choose employees with adequate skills and experience to complete assigned tasks
3. Managerial control - ultimate responsibility for task completion lies with the manager. Therefore they must implement a control system to ensure that errors are identified and corrected

Question 18

Discuss three advantages of delegation

Answer 18

1. Management workload - delegation reduced managerial workload and allows managers to focus on more important managerial tasks and decisions
2. Increased employee motivation - delegating tasks to employees shows that managers trust them. Increased motivation can boost productivity in the workplace.
3. Management training - delegation gives employees the opportunity to develop their skills and knowledge and helps them to train as managers.

Question 19

Discuss three disadvantages of delegation

Answer 19

1. Employee stress - some employees may not want the additional responsibility of delegated tasks and may become stressed and want to leave the firm.
2. Poor decision making - employees lacking experience and suitable guidance may make poor decisions when they receive delegated tasks. This could damage the firms reputation.
3. Employee resentment - employees may resent management if they feel that the delegated tasks are simply tasks that the manager doesn’t like doing.

Question 20

What are five benefits of leadership

Answer 20

1. Achieving organizational goals
2. Management time
3. Increased employee motivation
4. Supporting change
5. Staff recruitment and retention

Question 21

What is empowerment

Answer 21

Occurs when managers allow employees to make certain decisions on behalf of the business without needing to consult with management.

Question 22

What is a subordinate

Answer 22

A person in a lower rank or position in an organisation