Unit 2: Understanding management leadership and decision making Flashcards
define management
is planning, organising, directing and controlling all or part of a business enterprise.
what are the 4 basic functions of management
Planning
Organising
Directing
Controlling
what 5 things does planning consist of?
- Looking into the future
- Setting objectives and targets for the business for their area
- Conducting analysis to gather forecasts of key information such as: costs / revenues, incomes, competitors and prices
- Drawing up plans for functional areas within the business
(marketing, finance, HR and operations) - Estimating the likely resource needs for the proposed plan
what is happens when organising?
Management must assemble the resources that they need to carry out the actions set out as part of the planning process.
what is directing?
Motivating and communicating with other employees to oversee their behaviour and ensure everyone is working towards the same goals.
define motivation
is the willingness to achieve a target or goal.
employees that are highly motivated are more likely to what?
they’re more likely to perform better
what is controlling?
Involves setting standards using the company’s objectives, and reviewing and reporting performance.
This enables managers to identify areas of weakness and implement corrective action.
what did Mintzberg do?
In 1990 Henry Mintzberg set out the 10 roles performed by managers within businesses.
He argued that management is not about functions but about what managers do.
what are the three categories of management?
Interpersonal management
Informational management
Decisional management.
what are the 10 roles?
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
what 3 roles are part of the interpersonal management category?
Figurehead
Leader
Liaison
what 3 roles are part of the informational management category?
Monitor
Disseminator
Spokesperson
what 3 roles are part of the informational management category?
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
define each category of management:
Interpersonal -
Informational -
Decisional -
Interpersonal - involves managing through other people.
Informational - involves processing information
Decisional - uses information to make decisions
define a figurehead
Figureheads represent their colleagues, considered to have authority, carry out social, ceremonial and legal responsibilities - inspiring
define a leader
A leader creates and maintains an effective working environment, motivates and develops more junior employees - manage performance and responsibilities of team members
define liaison
communicate with internal and external contacts - need to network effectively to gather information
define a monitor
search for internal and external information relevant to the business, looking for changes in business environment, always look after their team’s performance and welfare
define a disseminator
a central communication role - passing on valuable information to others in the organisation
define a spokesperson
represent and speak for their organisation - transmit information about the organisation and its goals to the people outside it
define an entrepreneur
plans and initiates changes in the business
define a disturbance handler
deals with unexpected crises - try to control and solve disputes
define a resource allocator
decides the most effective use of an organisation’s resources - finance, staff and capital equipment
define a negotiator
engage in negotiations inside and outside the business
what are the 4 leadership styles?
authoritarian
paternalistic
democratic
lassaiz-faire
what is autocratic leadership? (5)
- Leader makes decisions without reference to anyone else
- High degree of dependency on the leader
- Can create de-motivation and alienation
of staff - May be valuable in some types of business where decisions need to be made quickly and decisively
- Tells you what you are to do
what is democratic leadership? (5)
- May help motivation and involvement
- Workers feel ownership of the firm and its ideas
- Improves the sharing of ideas and experiences within the business
- Can delay decision making
- Decision making from different perspectives
what is laissez-faire leadership? (7)
- ‘Let it be’ – the leadership responsibilities are shared by all
- Can be very useful in businesses where creative ideas are important
- Can be highly motivational, as people have control over their working life
- Can make coordination and decision making time-consuming and lacking in overall direction
- Relies on good teamwork
- Relies on good interpersonal relations
- Gives workers autonomy
what is paternalistic leadership? (4)
- Leader acts as a ‘father figure’
- Paternalistic leader makes decision but may consult
- Believes in the need to support staff
- Dominant figure that decides what’s best for employees
what is the type of leadership used depend on? (3)
Type of labour force
Nature of task and timescale
Personality of leader
what is the trait theory?
Certain personality traits differentiate a good leader from others.
what is the behaviour theory?
Focuses on how an individual behaves in a managerial role. Tries to identify the correct way to act instead of personality traits.
What are the two ideal dimensions of behaviour from a manager?
Consideration: focusing on the wellbeing of workers. Are they comfortable? Do they feel well treated?
Initiating structure: defining and planning work. Focusing on getting the job done, allocating tasks and informing subordinates.
define autocratic leadership
a leader taking complete charge and not consulting employees in decision making.
What are the two groups all managers are grouped into?
Theory X and Theory Y
What is a theory X manager like? (3)
- the average worker is lazy and dislikes work
- workers need to be controlled and directed
- centralised organisation and exercise of authority
What is a theory Y manager like? (3)
- most people enjoy work
- workers will take responsibility and organise themselves
- decision-making can be delegated
draw the Blake Mouton grid
Y axis - concern for people
X axis - concern for results / production
Centre = middle of the road management
Top Left = country club management
Top Right = team management
Bottom Left = impoverished management
Bottom Right = produce or perish management
what are the features of middle of the road management
compromises made to achieve acceptable performance; thought to be the less effective leadership style
what are the features of impovished management
laissez-faire style
minimal effort on management
hoping to avoid blame for errors
what are the features of country club management
focus on creating safe comfortable working environment; minimal conflict
what are the features of team management
staff closely involved in decision making and feel valued; consistent with McGregor’s Theory Y
what are the key features of the produce or perish management
autocratic style
theory X
workers have to complete tasks - nothing else
define productivity
how many inputs are needed to create one unit of output
What is the Tannenbaum-Schmidt continuum
shows where a manager’s approach to decision making lies
what is the order on the Tannenbaum-Schmidt continuum? (left to right)
tell, sell, consult, joins
define delegation
passing decision making responsibility down to junior employees
one benefit and drawback of autocratic leadership
+ Decisions are made quickly and decisively
- Can create de-motivation and alienation
one benefit and drawback of democratic leadership
+ May help motivation and involvement
- Can delay decision making
one benefit and drawback of paternalistic leadership
+ Believes in the need to support staff
- Leader may ignore suggestions
one benefit and drawback of laissez-faire leadership
+ Allows creative freedom
-Can make coordination and decision making time-consuming and lacking in overall direction
