UNIT 2- Management And Leadership Flashcards
Manager and leader
Traditional 3 teirs of management
A manager primarily focuses on day-to-day operations, planning, organizing, and controlling resources to achieve specific objectives. They ensure tasks are completed efficiently and that the team meets performance targets. In contrast, a leader focuses on inspiring, motivating, and guiding people towards a common vision and strategic direction
The traditional levels of management in business are senior management for example the board of directors who set corporate objectives and strategic direction and they are responsible to the shareholders led by the CEO
middle management accountable to senior management runs functions and department and
junior management to take on a more advise supervisory role accountable to the management management and monitoring control day to take tasks and manage teams of workers
Leadership style
+different classifications
Leadership style is the way that the functions of leadership are carried out and the way that the leader behaves
authoritarian is the focus of powers with the manager. Communication is top down in one way and utilises formal systems of commander control with very little delegation.
(Useful in a difficult time for the business or in high risk situations or where organisations have constantly changing or part-time workers that require clear instruction)
Paternalistic is where the leader decide what is best for the employees attempts to address employee leads and is slightly softer a form of control however there is still limited delegation
Democratic is where the focus of power is more with the group as a whole and leadership function is shared within a group employees have greater involvement in decision-making and there’s a large emphasis on delegation and consultation
(Can lead to slower decisions being made and concern as to where the power lies)
Laissez-faire leader has little input in decision-making and makes a conscious decision to delegate power managers and employees have the freedom to what they think is best
(Arguably useful with expert employees that are ready and willing to take on responsibility)
Can lead to employee insecurity due to lack of feedback and lacks framework structure focus and coordination
McGregor Theory X and Y
+ define delegation and consultation
Delegation is the passing of decision-making powers and responsibility down. The hierarchy. Consultation is taking into account the views of employees further down the hierarchy but ultimately keeping decision-making powers at the top
Theory X managers assume that the average worker is lazy and dislikes work and therefore need to be controlled and directed utilise essential organisation and exercises authority
-They assume that workers are also motivated by money and have no wish themselves or ability to help make the decisions and I’m not interested in the needs of the organisation
theory Y managers assume most people enjoy work and that workers will take responsibility and organise themselves and it allows decision-making to be delegated
- assume that workers have different needs enjoy work and seek their satisfaction from it and that poor performance is likely due to boring or monotonous work or poor management still
Tannenbaum and Schmidt Continuum of leadership
A continuum of leadership behaviour represented a range of actions related to the degree of authority used by the manager and the area of freedom available to non-manager it also linked to McGregor’s theory X and Y on managers
It ranges from managed centre leadership to subordinate centred leadership and demonstrates the four main styles in which someone
tells (leader identifies problems makes decision decisions and announces it to subordinate expecting implementation)
Sells (they make the decision but attempt to overcome resistance through discussion persuasion)
Consults (where they identify a problem presented to the group listen to the advice and suggestions before making a decision)
joins (when they define the problem and passes on solving and decision-making to the group)
Scientific decision-making
Modern too of data if decision making examples
Opportunity costs
Involves making decisions based on evidence and adopting a systematic approach rather than acting on intuition or gut reaction can be time-consuming and costly with no guarantee of the right decision
Supermarket loyalty cards, dynamic pricing for example Uber surge pricing and oasis tickets customer feedback automated stop ordering )
Opportunity costs is the cost of missing out on the next best alternative and the benefits that could’ve been gained by making a different decision they are particularly important for smaller start-up businesses. The resources are scarce and significant decisions about where to spend money or risky
Decision trees
A mathematical model used to help people make decisions by using estimate and probabilities to calculate likely income and decide whether the net game from a decision is worthwhile
Square - Option 1 Launch loyalty card O——— outcome A (high sales) p0.6 £1,000,000
cost- £500,000. ———outcome B (low sales) p0.4 £750,000
Raise sales.
- Option 2. Cut prices. ——— outcome A (high sales 0.8) = £800,000
Cost £300,000 ——— outcome B (low sales 0.2) = £500,000
High sales 0.6 X £1,000,000= 600,000
Low sales 0.4X £750,000 = 300,000
Total Expected value of launching loyalty card = (600,000+300,000) = 900,000
New gain (expected value- total cost) 900,000 -500,000= 400,000
Advantages and disadvantage on using decision trees
Choices are set out in a logical way, potential options and choices are considered the same time, probabilities enables the risk of an option to be addressed, likely costs are considered as well as potential benefits, easy to understand and provide tangible results
Probabilities are just estimates and therefore prone to error only uses quantitive data rather than qualitative assignments of probabilities and expected valleys are prone to bias and it doesn’t necessarily reduce the amounts of risk
