Unit 2- Managers, Leadership and Decision making Flashcards
Autocratic.
-Description of style?
-Key features?
-Managers make all decisions. Communicate top —-: down (one-way).
-Objective setting + staff controlling/monitoring.
Benefits of autocratic leadership?
Useful when:
-working with a large number of low-skilled staff. -when quick decisions are needed. -improves productivity. -Decision and direction of the business is kept consistent (not swayed by staff)
Drawbacks of an autocratic leadership style?
- demotivated staff = low staff retention
+
-High-pressure environment = increased mistakes.
Democratic.
-description of style?
- Manager gives employees better involvement in decision making.
-Use of delegation.
Benefits of democratic leadership style?
- motivated workforce = commitment to business, satisfaction and quality of work may improve.
- frees up managers’ time to make toucher decisions, that require higher expertise.
Drawbacks of democratic leadership style?
-slow decision-making and the need for a consensus may make it harder to take the “best” decisions. = decrease in performance.
Laissez-faire leadership style.
-description of style?
-Leader has peripheral role, leaving staff to manage the business.
Benefits of laissez-faire leadership style?
-May promote innovation.
-Could bring out the best in talented employees.
-the responsibility could motivate.
Drawbacks of laissez-faire leadership style?
-if staff isn’t so competent then = lack of focus and sense of direction.
+
-can encourage laziness = decreased productivity.
-success largely dependent on employees.
Paternalistic leadership style.
description of style?
- managers consult employees before making decisions (decisions are normally in the best interest of staff).
Benefits of a paternalistic leadership style?
- employees feel involved = which increases motivation and productivity.
+ - subordinates are more likely to obey the leader, as they understand instructions are in their best interest.
- high staff retention = lowered recruitment cost.
Drawbacks of paternalistic leadership style?
- (in the long-term) staff will recognize that the leader is too caring, therefore they might exploit this.
Outline two advantages of using a scientific approach to decision-making.
1) Decreased risk and the chance of failure.
2) Easier to get “key players” and shareholders to buy in.
Outline three disadvantages of using a scientific approach to decision-making.
1) Slower than “intuitive”.
2) Expensive
3) Is the data: biased or historical? = reduces validity.
Outline 3 advantages of using intuition in decision-making.
1) Quick/ time effective.
2) Easier to make judgments off on incomplete data.
3) If an expert is involved, their seasoned knowledge/opinion may be enough, or even better than scientific.
Outline 2 disadvantages of using intuition in decision-making.
1) Difficult to “sell” ideas.
2) Very risky = costly.
Outline 2 weaknesses of decision trees.
1) The probability for an outcome may be based on past results, but even so they are likely to be guestimates.
2) Doesn’t necessarily reduce risks.
Outline 1 strengths of decision trees.
1) Choices are all considered equally, once laid out. Makes manger’s quantify best decisions.
What are the 4 key factors that can influence decisions made?
1) Competition + External environment:
- Demographic
- Interest rates
2) Mission + Objectives
3) Resources:
- Finances
- Production capacity
- Staff capability
4) Ethics:
- Changes in laws
What are the 6 stakeholders and their interests in the business?
1) Employees - Job security, good working conditions, fair pay.
2) Customers - Good service, value for money.
3) Local communities - Avoidance of pollution + congestion, employment.
4) Suppliers - Regular orders, on-time payment.
5) Shareholders - Capital growth, dividends.
6) Government - Employment, payment of taxes.
How to manage relation withs high power/interest, “key players”? (Top right of Stakeholder map).
- Keep happy by involving them in the decision-making process.
How to manage relations with low power/interest stakeholders? (Bottom left)
- Simply keep them up to date via newsletters.
How to manage relation with high power, low interest stakeholders? (Top left)
- Regularly consulted
- If possible, management should try and increase their levels of interest, to avoid any possible conflicts at a later date.
How to manage relations with low power, high interest stakeholders? ( Bottom right)
- Kept informed to enhance the reputation of the business as a considerate company.
What are the benefits of moving up the Tannenbaum Schmidt?
1) increased employee motivation
2) innovation
3) improved decision quality
4) talent development
What are the benefits of moving up the Tannenbaum Schmidt?
1) increased employee motivation
2) innovation
3) improved decision quality
4) talent development
