Unit 2- Managers, Leadership And Decision Making Flashcards
Leadership
•Deciding a direction for the business
•inspiring staff to achieve objectives
Management
Getting things done by organising other people to do it
4 types of leadership:
•Autocratic
•Democratic
•Laissez Faire
•Paternalistic
Advantages and disadvantages of Autocratic leadership
Leader makes decisions themselves
+decisions made quickly
-may demotivate staff
•high dependence on leader
Advantages and disadvantages of Democratic leadership
Giving workers more of a say in decisions (consultative)
+different perspectives
+may increase motivation
+improved sharing ideas
-delays decision making
-potential conflict
Advantages and disadvantages of Laissez Faire style of leadership
“Let it be”, let’s workers do what they think is best
+useful in businesses which prioritises creativity
+motivational
-decision making is time consuming
-relies on good teamwork and interpersonal relations
Advantages and disadvantages of paternalistic style of leadership
Where leader acts like a father figure
+staffs needs are tried to be met
+staff know the manager wants to support them
*leader makes all the decisions (may decrease motivation)
Factors that affect leadership style:
•The task
•Tradition of organisation- culture
•Type of labour force (skilled/unskilled)
•Group size
•Leader’s personality
•Time to complete task
•Company structure
•Particular situation
Pros and cons to Scientific decision making
+supported by quantitative evidence
+logical
-may be expensive
-time consuming
Pros and cons to intuition decision making
+allows for quick decision making
+encourages creativity
-difficult to justify
-reliant on experience/expertise
5 categories on a Blake mouton grid
(1,9) country club management
(1,1) Improvished management
(5,5) middle of the road management (man management)
(9,9) Team management
(9,1) Authority obedience/ product or perish management
Improvished management
-minimum work to maintain relationships
-low concern for employees
Produce or perish management/ authority obedience
-concerned for production
-low concern for staff
-organised and eliminate people wherever possible
Middle of the road management
-balance between goals and needs of staff
-danger is that neither will be delivered to satisfactory levels
Country club management
-low concern for production
-high concern for staff
-thoughtful attention to staffs needs
-friendly and easygoing atmosphere
Team management
-high concern for production and people
-style based on the theory y of mcgregor
What does the Tannenbaum schmidt continuum measure?
How much authority/freedom a business leader gives their staff
Authority to the left and freedom on the right
Main 4 categories in the tannenbaum schmidt continuum
TELLS
manager makes and announces decisions
SELLS
managers sells the decisions (paternalistic)
CONSULTS
manager presents decisions; subject to change (democratic)
PARTICIPATES
employees allowed to make decisions/everyone participates
Stakeholder
Anyone with an interest in the business
Primary stakeholder
Stakeholders with a direct relationship with the business
Eg. Suppliers
Secondary stakeholders
Those who don’t have a direct relationship with the business
Eg. Local community
4 categories in a stakeholder map
•keep satisfied
•monitor
•manage closely
•keep informed
Keep satisfied (stakeholder map)
High power, Low interest
Manage closely
High power, High interest
Monitor (stakeholder map)
Low power, Low interest
Keep informed (stakeholder map)
Low power, High interest
Influences on the relationship with stakeholders
•leadership style
•mission/objectives
•stakeholder power/interest
•market conditions (eg.competition)
•external influences (eg.legislation)
•business form
opportunity cost
the loss of other alternatives when when an alternative is chosen
“you can’t have your cake and eat it”
what are the steps for making decisions?
set objectives
gather data
analyze data
make decision
implement decision
review decision
(on god a mouse is rad)
