Section 3.2 - Managers, leadership and decision-making Flashcards
Managers
- set objectives for their departments and for the people under them; decide what work needs to be done to meet the objectives and what resources they need
- analyse and interpret data
- make decisions
- review the effectiveness of their decisions; make further decisions based on their conclusions
- appraise their employees strengths and weaknesses and develop their talents
- need to be able to lead their staff
Authoritarian/autocratic style:
> leaders; makes decisions on their owns
identify the objectives of the business or department and say exactly how they’re going to be achieved
*requires lots of supervision and monitoring
*can demotivate able and intelligent workers
Paternalistic style:
> consults the workers before making decisions
explains decisions to them to persuade the t hat their decisions are in their interest
*think that getting involves and caring about HR is a positive motivator
Democratic style:
> encourages the workforce to participate in the decision-making process
leaders discuss issues with workers, delegate responsibility and listen to advice
have to be good communicators
shows leaders have a lot of of confidence in the workforce; leads to increased employee motivation
Laissez-faire style:
> weak form of leadership
leaders might offer employees coaching and support, but rarely interfere in the running of a business
hands off style of leadership would only be appropriate for a small, highly motivates of able workers
Internal factors of management and leadership:
- urgent tasks need different leadership from routine tasks
- a large unskilled workforce suits authoritarian leadership
- small educated workforce suites democratic more
External factors of management and leadership:
- recession; business needs strong leadership to guide it though difficult economic times = authoritarian or paternalistic (issue clear and quick commands)
- economy is growing = democratic leaders can take the time to communicate
- increased competition = democratic leaders can motivate employees to adapt to change or expansion
Blake Mouton Grid
Impoverished style:
low concern for people and low concern for production
> poor management of both humans and production resources
> results in low motivation and low productivity or failing equality
Produce or perish:
low concern for people and high concern for production
> lead to neglected workers need and demotivated workforce
> high levels of absenteeism and staff turnover
Country club:
high concern for people and low concern for production
> over converged for worker welfare leads to happy but not productive workplace
> doesn’t motivate workers to increase output
Middle of the Road:
average concern for people and average concern for production
Team:
high concern for people and high concern for production
> ideal leadership style
> happy, motivated and productive workforce
> often uses non-financial methods of motivation
Scientific decision making:
- Set objectives
- Collect data
- Analyse data
- Make decision
- Implement decision
- Review decision
> making decisions based on data reduced the risk of making expensive mistakes
logical and structured approach which can be adapted if necessary
can be costly and time consuming - involves collecting and analysing a lot of data
takes away the ‘human element’ may be less creative or origins
need to make sure you have reliable, up-to-date data
Decision-making - Risk
- all businesses have to take some risks
- high risks = (if successful) high rewards
- often try to reduce risk; scientific decision making can help with this
Decision-making - Reward
- managers expect decisions to bring rewards
- can be financial or beneficial in other ways
Decision-making - Uncertainty
- scientific decision making can help reduce uncertainty
- can’t predict everything, always some level of uncertainty
Decision-making - Opportunity Cost
^^^ the benefit that’s given up in order to do something else - the cosy of the choice that’s made
- the idea that money or time spent doing one thing is likely to mean missing out on doing something else
- put value on the product or business decision in terms of what the business had to give up to make it
- business must choose where to use their limited resources
- opportunity cost is the value of the next best alternative that’s been given up
Influences on decision making
Mission:
All decisions will take the mission into account
Objectives:
Decisions will be made with the aim of achieving the objectives, and are reviewed against the objectives to measure success
Ethics:
Social and moral values
External environment:
Inclines competition, tends, the economy of the area/whole country and environmental concerns
Resource constraints:
Resources availability is a factor (money, people, time and raw materials)
Stakeholders
Primary stakeholders:
Groups that are directly affected by the changes in the businesses function (what it is doing) or financial circumstances e.g. the decision to increase production.
Examples -
- customers
- employees
- payables (the suppliers who the business might owe money to)
Secondary stakeholders:
These groups or individuals do not have a direct functional or financial relationships with the business - they are affects by the business or can influence its actions
Examples -
- the local community
- pressure groups
Internal stakeholders:
Those that are considers to be a part of the business, employees, owners.
External stakeholders:
Exist outside of the business, e.g. the government, suppliers, and even potential shareholders (owners).
