Glossary Unit 2 Flashcards
Autocratic leadership
Imposing decisions on a group with little or no prior discussion and limited individual choice allowed. There is strict control as advocated by Taylor and typically just top-down communication.
Consultation
a process in which one person or group discovers the views of another. After asking for their views the original strategy may be amended.
Country club Leadership
the manager is most concerned about their team members’ needs and feelings assuming that, as long as they are happy and secure, they will work hard. What tends to be the result is a work environment that is very relaxed and fun, but where productivity suffers because there is a lack of direction and control.
Decision trees
a diagram showing options available and the probabilities of various possible outcomes resulting from these decisions.
Democratic Leadership
allowing group discussion to influence the final decision. Leaders mix informally with the subordinates and are known personally.
Expected value
the most likely financial outcome from a specific strategy adjusted to take into account the different probabilities of success and a failure.
Expected value = Outcome 1 X probability of outcome 1 occurring + Outcome 2 X probability of outcome 2 occurring
Impoverished Leadership
With a low regard for creating systems that get the job
done, and with little interest in creating a satisfying or motivating team environment. The manager’s results are inevitably disorganization, dissatisfaction and disharmony.
Intuition
The use of a hunch or gut feeling to make decisions.
Laissez-faire Leadership
The leader has minimal input, delegating heavily leaving staff to make necessary decisions
Leadership
People who others naturally follow through inspiration and trust. Leaders may not necessarily be managers who have people who work for them, but the best managers are also leaders
Management
the process of controlling people and getting things do via planning, organising controlling and directing.
Manager-centred leadership
one end of the Tannenbaum Schmidt continuum in which the manager makes decisions and announces it without consultation.
Middle-of-the-road Leadership
The manager tries to balance results and people, but this strategy is not as effective as it may sound. Through continual compromise,
they fail to inspire high performance and also fails to meet people’s needs fully. The result is
likely to be mediocre performance.
Net Gain
the expected benefit from a course of action, after all the costs have been paid. It is used in decision tree analysis to work out the likely benefit of the action.
Opportunity costs
The cost of the foregone alternative. The next best thing, that is given up when a course of action is undertaken.
Probability
the chance of something happening as a fraction or percentage.
Produce / perish Leadership
Managers who believe that their team’s needs are always secondary to its productivity. This type of manager is autocratic, has strict work rules, policies and procedures, and can view punishment as an effective way of motivating team members. This approach can drive impressive production
results at first, but low team morale and motivation will ultimately affect people’s performance, and this type of leader will struggle to retain high performers.
Resource constraints
The limitations of quantity or quality of labour, materials, time and information and these limits make decision-making harder.
Risk
the possibility of loss on an investment or a return that is less than expected.
Scientific decision making
attempt to make logical decision based on data analysis.
Stakeholder
any individual or group that is affected by any business decision. E.g. customers, workers, shareholders, local residents, creditors.
Stakeholder engagement
Involving anyone who has an interest in the business’ decisions via consultation, negotiation or communication
Stakeholder power
the level of influence that a stakeholder group has e.g. a pension company with a large shareholding can be an influential stakeholder voice.
Stakeholder mapping
Plotting the level of interest and power that stakeholder shave on a grid. This enables the managers to decide how much to involve and react to various different stakeholders groups.
Subordinate-centred Leadership
When managers give subordinates great freedom to operate. It is one end of the Tannenbaum-Schmidt Continuum.
Team styled leadership
a leader who is passionate about his work and who does
the best he can for the people he works with. Team managers commit to their organization’s goals and mission, motivate the people who report to them, and work hard to get people to stretch themselves to deliver great results. But, at the same time, they’re inspiring figures who look after their teams. Someone led by a Team manager feels respected and empowered, and is committed to achieving their set goals.
