Unit 2 - Managers, leadership and decision-making Flashcards
What are the four functions of management
- Planning
- Organising
- Leading
- Controlling
What is leadership style
The way that a leader behaves and how decisions are made
What are the four leadership styles
Autocratic
Laissez-faire
Democratic
Paternalistic
What is autocratic leadership
Manager makes the decision without consulting others
What is paternalistic leadership
Manager consults employees before making decisions
What is Democratic leadership
Managers make the final decision but employees are included and involved in decision making
What is Lassez-faire leadership
Managers have no input in decision making and employees have freedom, but managers are responsible
What are the internal influences on leadership styles
- Personality
- Skills
- Personal ethics / beliefs
What are the external influences on leadership styles
- Employee diversity
- Business culture
- Nature of the industry
- Employees responses to style
- Type of task
What is the tannenbaum-schmidt continuum
A scale that shows the relationship between the autonomy (level of freedom) the manger gives to subordinates and the level of authority retained by the manager.
What is the most manger centered leadership on the continuum
‘Tell’
What is ‘tell’
The manager makes the decision and tells the staff about it
What is the second most leadership-centred on the continuum
‘Sell’
What is ‘sell’
The manager sells the decision to employees
What is the middle ground of manager and subordinate leadership on the continuum
‘Consult’
What is consult
When the manager presents a tentative decision which employees can debate and discuss
What is the most subordinate-centered leadership
‘Joins’
What is ‘joins’
Problem is presented to employees who solve it
What are the benefits of autocratic leadership
Useful in a business crisis
Useful when there are unskilled employees
What are the drawbacks of autocratic leadership
Demotivating
Low staff retention
What are the benefits of paternalistic leadership
Employees feel more involved
What are the drawbacks of paternalistic leadership
Lead to demotivation and low retention in the long term
What are the benefits of democratic leadership
Increased motivation
Manager becomes more time free
What are the drawbacks of democratic leadership
Slow decision making process
Only works if employees are capable
What are the benefits of laissez-faire leadership
Useful when employees are highly skilled
What are the drawbacks of laissez-faire leadership
Manager loses control
What are the influences on which leadership style to choose
- The individual
- Nature of the industry
- Business culture
How does the individual influence leadership style
- Skills and personality of leader
- Previous experience of manager
How does the Nature of the industry influence leadership style
- Some industries are more creative so are more subordinate orientated
How does business culture influence leadership style
- Leadership of previous and existing managers
What are the decision making factors
- risk
- reward
- opportunity cost
- Uncertainty
What is the risk in decision making
- risk of outcome when objectives are not met
What is the reward in decision making
the benefits from taking a risk
What is uncertainty
the reliability of the information that aids decision making
What is opportunity cost
the cost of the next best alternative forgone when making a decision
What are the two types of decision making
Scientific decision making and intuition
What is scientific decision making
Making a decision based on data by following a logical and rational approach
What is intuition
Decisions that are based on gut feeling or instincts rather than data and evidence
What is the decision making process
- Set objectives
- Gathering and analysing information
- Choosing course of action
- Implementation
- Review
What are decision trees
Diagrams that can be used to determine the optimum course of action in situations where several alternative outcomes exist
What do decision trees allow managers to make decisions based on
- Expected financial outcomes
- Probability of success and failure
- Initial cost
What are the benefits of decision trees
- Forces managers to consider the probability of failure
- Consider initial cost
What are the drawbacks of decision trees
- Figures are based on predictions
- Only considers financial data, doesn’t take into account external factors
What is stakeholder mapping
A way of analysing stakeholders based on their interest and power
What is the name of the strategy for dealing with low interest and low power stakeholders
Monitor
What is the name of the strategy for dealing with low interest and high power stakeholders
Keep satisfied
What is the name of the strategy for dealing with high interest and low power stakeholders
Keep informed
What is the name of the strategy for dealing with high interest and high power stakeholders
Manage closely
