Section Two - Management and Decision Making - Management and Leadership Flashcards
What do Managers do?
(6 bullets)
1) Managers set objectives for their department, and for the people under them.
They decide what work needs to be done to meet the objectives, and what resources they need.
2) Managers analyse and interpret data - e.g. data on employee performance, sales, production costs, etc.
3) Managers make decisions - they’ll use data analysis and interpretation to do this. For example, if they know that a store is busiest between 11 am and 2 pm, they’ll increase the number of staff during these times.
4) Managers review the effectiveness of their decisions, and make further decisions based on their conclusions.
So if a marketing manager had decided to spend more of her budget advertising one product, but this had no impact on sales, she might decide to spend the money on promoting a different product instead.
5) Managers appraise their employees’ strengths and weaknesses and develop their talents.
6) Managers need to be able to lead their staff.
What is the difference between managing and leading?
Managing means telling people what to do and organising resources to get the job done. Leading means motivating people and inspiring them to do things.
Managers with good leadership skills can persuade their staff that their decisions are the right ones.
What are the different management and leadership styles?
4 bullets
- Authoritarian
- Paternalistic
- Democratic
- Laissez-faire
Explain authoritarian style
The leader (or manager) makes decisions on their own. They identify the objectives of the business or department and say exactly how they’re going to be achieved. It’s useful when dealing with lots of unskilled workers and in crisis management. This method requires lots of supervision and monitoring - workers can’t make their own decisions. This style can demotivate able and intelligent workers.
Explain paternalistic style
Paternalistic (fatherly) style is a softer form of the autocratic style. The leader consults the workers before making decisions, then explains the decisions to them to persuade them that the decisions are in their interest.
Paternalistic leaders think that getting involved and caring about human relations is a positive motivator.
Explain democratic style
The leader encourages the workforce to participate in the decision-making process. Leaders discuss issues with workers, delegate responsibility and listen to advice. Democratic leaders have to be good communicators. This style shows leaders have a lot of confidence in the workforce - which leads to increased emplovee motivation. It also takes some of the weight of decision making off the leader.
Explain laissez-faire style.
Laissez-faire style is a weak form of leadership. Leaders might offer employees coaching and support, but they rarely interfere in the running of the business. This hands off style of leadership would only be appropriate for a small, highly motivated team of able workers.
What are internal factors influencing management and leadership styles?
2 bullets
1) Urgent tasks need different leadership from routine tasks. Urgent tasks, like an unexpected large order coming in, may need an authoritarian leader to tell employees what to do and how to do it.
2) A large, unskilled workforce suits authoritarian leadership, whereas a small, educated workforce suits a democratic approach much better.
What are external factors influencing management and leadership styles?
3 bullets
1) In a recession, a business needs strong leadership to guide it through difficult economic times.
Authoritarian or paternalistic leaders can be efficient in times of crisis - they can issue clear, quick commands because they don’t have to consult others.
2) When the economy is growing, managers don’t always need such a strong leadership approach.
Democratic leaders can take the time to communicate with employees.
3) Increased competition requires democratic leaders who can motivate their employees to adapt to change or expansion. Laissez-faire leaders are more complacent and don’t always provide enough leadership to guide their workforce in this situation.
What is the Tannenbaum-Schmidt Continuum?
The Tannenbaum Schmidt Continuum places managers on a scale ranging from autocratic management through increasing levels of participation in decision-making by the workforce. It identifies 4 key types of management style. Tell, Sell, Consult, Delegate
What does the Tannenbaum-Schmidt Continuum look like?
Explain “Tells”
Authoritarian management style. Zero involvement of the workforce in decision making - they’re not trusted with decisions, so this style can be divisive between management and the workforce.
Explain “Sells
The manager makes the decision but tries to present it to the workforce as having a sound rationale. The workforce are allowed to ask questions but they do not influence the decision being made.
Explain “Consults”
The manager proposes a **tentative decision **and invites discussion. The decision is open to being modified. This recognizes the insight and value of workforce participation in decision making.
Explain “Delegates”
The manager outlines the problem and sets the constraints.
The team discuss solutions and make the final decision, but the manager is accountable for the outcome of the decision. This delegation of authority shows a high level of trust that the manager is placing on the team.
What does the Blake Mouton Grid look like?
