unit 2 Flashcards
role of managers
- setting objectives
targets to be achieved - analysing
business performance - leading
motivating subordinates to achieve goals - making decisions
allocation of resources
day to day running of business - reviewing
monitoring performance abasing
objectives
taking action as necessary
interpretation of leadership
a relationship through which one person influences the behaviour or actions of other people
why is leadership increasingly important in business
- changing organisational structures
flatter + greater delegation
teamwork + focus on quality
assurance
coaching + support - rapid changing
change is becoming a constant feature
soft skills of leadership
management increasingly important
leaders
inspire people, build relationships, take risks, have followers
managers
enact the plan, use their authority, manage risks, have subordinates
what is a leadership style
the way that the functions of leadership are carried out
the way that a leader behaves
authoritarian leadership
power is with manager
communication is top-down
Forman system of command + control
use of rewards + penalties
very little delegation
paternalistic leadership
leader decides what’s bets for employees
addressing employees needs
little delegation
softer form of authoritarian leadership
democratic leadership
power is with the group
leadership functions shared with group
employees have more involvement
emphasis on delegation
better moral
laissez-faire
leader has little input
conscious decisions to delegate power
managers/employees have freedom in what’s best
effective when staff are ready and willing to take responsibility
theory x managers
assume average worker is lazy and dislikes work, workers need to be controlled & directed,
theory y managers
assume most people enjoy work, workers will take responsibility and organised themselves
manager defintion
A manager tends to focus on controlling resources and optimising processes
leadership definition
while a leader focuses on inspiring and empowering people to work together towards a common goal
senior management
board of directors
set corporate objectives
board responsible for shareholders
middle management
accountable to senior management
run business functions and departments
junior management
supervisory role, accountable to middle management
monitor & control day to day tasks and manage team workers
four stages of tannenbaum and Schmidt
tell, sell, consult, joins
tells (tannenbaum and Schmidt)
leader indentifies problems, makes decision and announces to subordinates; expects implementation
sells (tannenbaum and Schmidt)
leader still makes decisions, but attempts to overcome resistance through discussion & persuasion
consults (tannenbaum and Schmidt)
leader identifies problem and presents it to group. listens for advice and suggestions before final decision
joins (tannenbaum and Schmidt)
leader define the problem and passes on the solving & decision-making to the group
factors affecting leadership
size, structure
feelings
moral
personality
what’s hunch
key benefits-quick
based on intuition, gut feel and experience
but hard to justify for business decision involving significant risk
what’s scientific
based on data and analysis
downsides; time consuming & costly; no guarantee of the right decision
increasingly common and automated, supported by big data and data analytics
6 factors of STEP
set objective, gather data, analyse data, make decision, implement decision, review decision
examples of data being an important role in decision making
market research, inventory control, capacity management
PESTLE
political
economic
social
technological
legal
environmental
what is a decision tree
a mathematical model
help managers make decisions
estimates probabilities for outcomes
what is probability
chance of an outcome happening
expected value
financial outcome of an outcome calculated by (estimated financial effect x probability)
net gain
the value to be gained from taking a decision (expected value of each outcome - the costs with each decision)
who are stakeholders
anyone with an interest in the actions of a business
examples of stakeholders
customers
employees
shareholders
government
community
suppliers
financial institutions
what to do if the stakeholder is low and low
monitor
what to do if the stakeholder is low and high
keep satisfied
what to do if the stakeholder is high and high
manage closely
what to do if the stakeholder is low and high
keep informed
influences in the relationship with stakeholders
leadership
mission and objectives
stakeholder power and interest
market conditions (competition)
business form
how to manage the relationship with different stakeholders
communication
consolation
