2.1 Understanding management, leadership and decision making (includes Market mapping, Blake Mouton & Tannenbaum & Schmidt)

Question 1

What are the 5 basic tasks of a manager?

Answer 1

Set objectives: The manager sets goals for a group and decides what work needs to be done.

Organise: The manager divides the work into manageable activities and selects the people to undertake them.

Motivate and communicate: The manager creates a team that works well together.

Measure: The manager not only sets targets but analyses and appraises performance.

Develop people: It is up to the manager to develop people, who may be looked upon as the most important asset of a business.

Question 2

What 4 key tasks can the role of a manager be summed up in?

Answer 2

Planning: (including setting objectives and analysing)

Organising: Assembling the human and other resources needed.

Directing: Leading and communicating with other employees.

Controlling: Reviewing and reporting on business performance.

Question 3

What can planning involve?

Answer 3

• Setting objectives or targets for the business/ area of the business that the manager is responsible for.
• Conducting analysis to gather together forecasts of key data such as businesses costs, revenues, consumers incomes, competitors prices +products.
• Drawing up plans for functional areas within the business such as finance, HR or marketing- these plans should fit together to help the business achieve its agreed objectives.
• Estimating the likely resource needs for any proposed plans.

Question 4

Management- organisation

• What must management do?
• What will happen through the process of getting organised?

Answer 4

Management- must assemble the resources that they need, to carry out the actions set out as part of the planning process.

• Management will determine the internal organisational structure.
• Establish and maintain relationships.
• Allocate necessary resources.

Question 5

Functions of management- directing?

Answer 5

To influence and oversee the behaviour of staff:

Motivation: Willingness to achieve a target or goal.

Communication: Exchange of information between one or more people.

Question 6

Functions of management- controlling

What does this involve?

Answer 6

Controlling involves setting standards using the company’s objectives, reviewing and reporting performance:

• Financial reports
• Employee performance- productivity, absenteeism or training costs.
• Social performance- behaving ethically, minimising pollution or creating jobs.

Question 7

What are the 4 different leadership styles?

Answer 7

• Paternalistic
• Democratic
• Autocratic
• Laissez-faire

Question 8

Authoritarian managers- what are they like towards employees??

Answer 8

• Hold on to as much power and decision-making as possible.
• Focus of power is with the manager.
• Little freedom and accountability given to employees.
• Little trust in employees making decisions.
• Formal systems of demand & control.
• Minimal consultation.
• Review employees work periodically- ensuring they are doing the tasks pleasing to theb managers.

Question 9

What are the advantages of authoritarian style leadership?

Answer 9

• Decisions and direction of business will be consistent.
• May project image of confident, well-managed business.

Question 10

When are authoritarian style leaderships useful?

Answer 10

When quick and decisive decisions are required!!

Question 11

What are the disadvantages of authoritarian style leadership?

Answer 11

• Subordinates are highly dependent on managers- lots of supervision is needed!
• Can create de-motivation and alienation of staff.

Question 12

What is communication like with authoritarian managers?

Answer 12

One way communications- downwards from leader to subordinates!

Question 13

Paternalistic managers- what do they do/ are like?

Answer 13

• Manager- still making the decisions but they like communication with employees- explaining key ideas & right course of action- why it is the right strategy to be persuing!
• Akin to a parent/ child relationship- where leader is seen as the “father figure”- they believe in the need to support staff.
• A softer form of authoritarian leadership which results in better employee motivation and lower staff turnover.
• Little delegation.

Question 14

Paternalistic management- what is this a softer form of and why is this good?

Answer 14

Softer form of authoritarian leadership which results in better employee motivation and lower staff turnover.

Question 15

Democatic leadership- what do these managers do/ are like?

Answer 15

• Focus of power is shared within the group as a whole.
• Leadership functions are shared within the group.
• Employees have greater involvement in the decision making process- but this potentially slows down decision making.
• Emphasis on delegation and consultation- however the leader has the final say!

Question 16

What may the trade off be for democratic leadership?

Answer 16

Trade off between speed of decision making and

better motivation and morale.

Question 17

Democratic management- what subordinates do they need for this method to be most effective?

Answer 17

Skilled, free thinking and experienced subordinates!!

Question 18

What are the advantages of democratic management?

Answer 18

Commitment to the business, satisfaction and quality of work may improve!

Staff loyalty- increase

Question 19

Laissez faire leadership- what is it like?

Answer 19

• Leader devotes lots of power and autonomy to their employees.
• Managers/ employees have freedom to do what they think is best.
• Leader has little input into day to day decision making.
• They maintain an over seeing role.
• Relies on good teamwork and interpersonal relations.

Question 20

When is laissez faire style leadership most effective?

Answer 20

• When staff are ready and willing to take responsibility, they are motivated and trusted to do their jobs.
• It can encourage production of highly creative work by subordinates!

Question 21

Why can laissez faire leadership be criticised?

Answer 21

• Staff lack focus and sense of direction.
• Much dissatisfaction.
• Can make coordination and decision making time-consuming and lacking in overall direction

Question 22

What is the type of leadership style determined by?

Answer 22

• Nature of task and timescale.
• Personality of leader.
• Type of labour workforce.

Question 23

Behavioural theories

What is trait theory?

What two dimensions were formed?

Answer 23

Trait theory- Certain personality traits determine a good leader/ manager!

• Consideration: Focusses on the well being of subordinates.
• Initiating structure: Focusses on getting the work done!

Question 24

Different leaders have different styles of leadership. What may some key influences be?

Answer 24

• The individual: Some leaders feel they have to be in control- lean towards a more autocratic approach- whereas others may be more comfortable discussing decisions.
• Nature of industry: Some industries require a high degree of creativity (laissez-faire)- whereas with others safety may be the main concern (autocratic).
• Business culture: A business may already have a tradition of doing things in a particular way- this might determine the style adopted!

Question 25

What does the leadership study by Blake and Mouton show/ include?

Answer 25

• It portrays leadership through a grid depicting concern for people on the y axis and concern for production on the x axis.
• Each dimension ranges from 1-9 and results in 5 leadership styles.

Question 26

Blake Mouton grid- what leadership has high concern for people and low concern for production?

Answer 26

Country club!

Question 27

Blake Mouton grid- what leadership has low concern for production and low concern for people?

Answer 27

Impoverished!!

Question 28

Blake Mouton grid- what leadership style has high concern for people and high concern for production?

Answer 28

Team leader!!

Question 29

Blake Mouton grid- what leadership style has high concern for production and low concern for people?

Answer 29

Authoritarian/ produce/ perish

Question 30

What is on the x axis for the Blake Mouton grid?

Answer 30

Concern for production

Question 31

What is on the y axis of the Blake Mouton grid?

Answer 31

Concern for people.

Question 32

What does country club mangement include?

What is the trade off?

Answer 32

• Low concern for task, high concern for people.
• Try to ensure harmony, collaberation and that the needs of employees are being met.
• They believe if people are happy and in harmony, work of high quality will be produced!

TRADE OFF: costs may be higher and productivity lower!

Question 33

What does authoritarian / perish/ produce management include?

Answer 33

• Low concern for people, high concern for task.
• Can receive results and achieve objectives- highly productive and efficient- (especially in the short term and is accepted by employees who may wish a promotion)

HOWEVER

• It can have a negative impact on morale and wishes of staff- they may not wish to stay in the business in the long term.

Question 34

What does impoverished management include/ demonstrate?

Answer 34

Low concern for task, low concern for people.

• Leaders do not care about productivity, efficiency and completion of tasks.
• They have little regard for the welfare of their team/ staff - can result in a high labour turnover- low morale- high abstentenism.

Question 35

What does team leader management include?

Answer 35

• High concern for people, high concern for task.
• It is likely to be the most effective with emphasis on empowerment, trust and team working.
• However- it may not be desirable/ favourable in all situations and it can be difficult to achieve!

Question 36

Tannenbaum and schmidt continuum of leadership behaviour.

What is it and what does it show?

Answer 36

• It is a simple model of leadership theory which shows the relationship between the level of freedom that a manager chooses to give a team, and the level of authority used by the manager.
• As the team’s freedom is increased, the managers authority decreases.

Question 37

How does the graph look - Tannenbaum and Schmidt continnum?

Answer 37

• Its a scale from 1 to 7, the left hand side of the scale is manager centred (very autocratic- make all the decisions and little freedom given to employees)
• The right hand side- 7, Subordinate centred- lots of freedom to employees and little authority to manager.

Question 38

What happens at each point within the scale of the Tannenbaum and schmidt continuum?

Answer 38

1) Manager tells staff about the decisions (autocratic)
2) Manangers convinces (sells) staff about the decisions.
3) Mananger invites questions.
4) Manager makes decision subject to change.
5) Manager asks for questions then makes decisions.
6) Manager gets parameters but lets the team make decisions.
7) Manager allows the team to set parameters and make decisions.

Question 39

Tannenbaum and Schmidt Continuum

What happens at point 1?

Answer 39

The manager makes the decision and announces it.

• Autocratic leadership style.
• The manager reviews options in light of aims, issues, priorities and timescales.
• Decides the action and informs the team of the decision.
• The team plays no active part in making the decision.
• The team may well perceive that the manager has not considered the teams welfare at all.

Question 40

Tannenbaum and Schmidt Continuum

What happens at point 2?

Answer 40

• The manager “sells” the decision- will explain the reasons to the team- especially the benefits.
• The manager is seen by the team to recognise their importance and to have some concern for them.

Question 41

Tannenbaum and Schmidt Continuum

What happens at point 3?

Answer 41

Manager presents ideas and invites questions.

• Softer in their approach- want the team to feel they have a valued input in the process.
• More involving and participating than the first 2.
• Enables the team to appreciate the reasons for the decision and the implications.
• How much the teams input is considered will depend on the level of experience and how much the mananger trusts them.

Question 42

Tannenbaum and Schmidt Continuum

What happens at stage 4?

Answer 42

Manager makes tentative decisions subject to change.

• Manager discusses the and reviews the provisional decision with the team.
• Achknowledge the team has something to contribute in the decision making process- which is more involving and motivating than the previous level.
• Gives the team the power over how the process is dealt with.

Question 43

Tannenbaum and Schmidt Continuum

What happens at stage 5?

Answer 43

Manager presents problem, gets suggestions and makes decisions.

• Team is encouraged to offer ideas and additional options and discuss the implications of each possible course of action- the manager then decides which option to take.
• High and specific involvement for the team- and is appropriate particularly when the team has more detailed knowledge or experience over the issues of the manager.

Question 44

Tannenbaum and Schmidt Continuum

What happens at stage 6?

Answer 44

Manager defines limits and asks the group to make decisions.

• Delegates responsibility for the decision within the limits that the manager has set.
• Manager may or may not be apart of the team who makes the decision.
• Gives huge levels of responsibility to the team but the manager can still control the risk and outcomes to an extent.

Question 45

Tannenbaum and Schmidt Continuum

What happens at stage 7?

Answer 45

Manager permits subordinates to function within the limits defines by the superior.

• The manager trusts the team to get on with the job from start to finish.
• The manager always retains any responsibility for any disasters whereas the team must be given credit for any successes.

Question 46

What are the advantages for the Tannenbaum and Schmidt Continuum?

Answer 46

• It defines the criteria for involvement and delegation & range of choices for the involvement.
• It recognises that the chosen leadership style depends on a variety of factors, including the leader’s personality, the perceived qualities of subordinates.
• Focuses the decision making on relevant criteria - time
• Allows for “situational” factors such as the need for urgency in leadership and decision-making.

Question 47

What are the disadvantages for the Tannenbaum and Schmidt continuum?

Answer 47

• Assumes the manager has sufficient information to determine the disposition to himself or the team
• It involves only the initial step of assigning a task to someone, not the following processes which may determine the effectiveness of the outcomes.

Question 48

What is meant by management?

Answer 48

Management is planning, organising, directing and controlling all or part of a business enterprise.