Management and decision making Flashcards
Autocratic leadership
Leader makes decision on their own.
Useful when dealing with unskilled workers and in crisis management however this method requires lots of supervision and monitoring leading to demotivated employees.
Paternalistic leadership
Leader consults the workers before making decisions, then persuade them that decisions are in their best interest. They believe that getting involved and caring about HR is a positive motivator
Democratic
Encourages workforce to participate in decision making process. Leaders discuss issues with workers and delegate responsibility. Good communicators and increases employee motivation
Laissez-fairez
Leaders offer employees coaching and support but rarely interfere in running of the business. This is appriopriate for a small, highly motivated team of able workers.
Internal factors influencing leadership styles
Urgent tasks such as a large order needs an autocratic leader. + unskilled, large workforce
External factors influencing leadership styles
In a recession, a business needs strong leadership to guide it through difficult economics times.- Autocratic or paternalistic leaders.
However, when the economy is growing, democratic leaders are more suitable.
Increased competition requires democratic leaders who can motivate employees to adapt to change or expansion.
What is the tannenbaum Schmidt continuum
places managers on a scale ranging from autocratic management through increasing levels of participation in decision making
What are the seven types of management style
Tells, Sells, Suggets, Consults, Joins, Delegates, Abdicates
Tells style
Autocratic management style as the workforce has zero involvement in decision making
Abdicates style
Team define and solve the problem - ultimate freedom for workforce.
Joins style
Manager proposes a problem and workforce work together to discuss solutions. Style is useful if workforce has specific knowledge.
Advantages of scientific decision making
Making decisions based on data reduces the risk of making expensive mistakes.
Cons of scientific decision making
Can be expensive and time consuming- also need to have reliable and up-to-date data
Pros of intuitive decision making
Can be made quickly and if situation is new or unfamiliar using data may not be helpful
Cons of intuitive decision making
Risky as people can make mistakes and decisions may be irrational
Opportunity cost
Value of next best alternative that’s been given up
Factors influencing a managers decision making
Objectives
Mission
Ethics
External environment eg seasonal demand, competition
Resource constraints
Six step model for scientific decision making
1- Set objectives
2 collect data
3 analyse data
4 Make decision
5 implement decision
6 review decision
Pros of decision trees
Allow managers to compare quantitatively and objectively and think about financial gain
Cons of decision trees
Qualititative data such as employees opinion should be included and there is a wider range of outcomes than the decision tree suggests
Internal stakeholders
Shareholders- want high dividends and high share price
Employees - Fair wage, job security, working conditions, promotional opportunities
External stakeholders
Customers -quality/prices
Community - employment
Government
Stakeholder mapping
helps identify how much interest and power different stakeholders have
High interest High Power
manage closely eg shareholders
