Managers, Leaders & Decision Making Flashcards
The roles of managers within a business
Set objectives
Analyse Performance based in objectives
Review Performance
MAke decisions
Motivate, inspire and leads
The types of management and leadership styles that may be used within a business
Autocratic: i pose their decisions, no consulting to colleagues who are lower down the hierarchy
GOOD WHEN: quick decisions, large number of low skilled workers
BUT CAN: lead to resentment or lack of creativity
———
Democratic: group take part in decision / contribution, actively involves workers, often feedback & input, encourage conversation and participation in the decision-making process
GOOD WHEN: skilled workers BUT takes a longer time
———
Paternalistic: social needs/welfate of workers, explains decision and persuades workers, listens to feedback but makes decision, father figure, life long
GOOD WHEN: family business (old fashiones), operating for long years
BUT: becaus eworkers don‘t make decision, can create tension
———
Laissez-faire: own decision from group, leader sets general objectives, makes few demands, not formal
GOOD WHEN: creative workers, highly motivated and able
BUT CAN: low productivity, inefficience
The Tannenbaum and Schmidt continuum of leadership styles
Manager Centered Leadership:Using authority -> Subordnate Centered Leadership: Giving freedom
Tells
Sells
Suggests (presents, suggests, q‘s from team)
Consults (consulting team before final decision)
Joins (presents problem, team‘s ideas, decision)
Delegates (defines limits, then decision by team)
Abdicates (full freedom)
The effectiveness of different styles of management and leadership
How data (scientific decision making) amd intuition can be used to take decisions and the value of using these approaches in different circumstances
Intuition: relying on your instinct
-> can be needed for judgement calls or when data is hard to get
Data: made on information, needs to be collected and analysed
-> BUT: out of date / untrustworthy / biased / incomplete research
Risks, rewards, uncertainty and opportunity cost in relation to decision making
The higher the risk the higher the reward
Rewards: financial or non financial
Opportunity cost: alternative given uo in order to do something else (time, money etc -> limited resources!)
Uncertainty: due to lack of data / expertise
Decision trees
A mathematical approach to making choices
A diagram which represents the probable outcomes for a range of actions and their financial consequences
How to calculator expected value and net gains on a decision tree
- look image *
Net gain: expected value - costs
How decision trees are used in decision making and their value in making decisions
- logical, reliable, facts -> persuasive
- potential options and Choice at the same time
- address probability and „risks“ of options
- likely costs and benefits at the same time
- easy, tangible (greifbar)
- just estimates
- only quantative data
- no etjics
- risk is the same
The factors that influence decision making by leaders and managers
PESTLE
Political
Economical
Social
Technological
Legal
Ethical
Market conditions, competition, household incomes, interest rates, demographic factors, environmental issues
The stakeholders who have an interest in a business and their needs in relation to the business
PRIMARY (directly deal):
customers -> quality, prices, range of products and services, choice
employees -> good pay and conditions, job security, promotion
suppliers -> paid promptly, reliable communication
creditors -> financial stability, payback loans
shareholders -> returns on investment, high divident payments
SECONDARY (no financial or functional):
Local Community -> eco friendly, investment, hire locals
Government -> jobs, successful to make profit, taxes
The media, Activist groups
INTERNAL (considered inside the orga):
employees -> good pay and conditions, job security, promotion
managers -> responsibility, new targets, career progress board of direction -> growth, sales increase
EXTERNAL (outside of business): customers, government, suppliers, creditors
How stakeholders‘ needs may conflict or overlap
Automation of processes:
- customers happy more Efficiency, better quality, cheaper
- could leas to job losses
- local community potential noise pollution
New store
- new jobs
- more money
- more competition
Closing a store
- competitors happy dependent on industry
- owner lose money
- employees no job
How managers and leaders may consider stakeholder‘s needs when making decisions. Understand the model of stakeholder mapping and how this be used
CUSTOMERS:
quality products and services
Eco friendly, ethical, fair trade
Fair prices
WORKERS:
GoodPay and benefits
Good Management style
Freedom
Mental Health, Health and safety
COMMUNITY:
Jobs
Charity sponsoring
High influence low interest
High influence high interest
Low influence low interest
Low influence high interest
Factors which may influence the relationship between businesses and stakeholders
Internal factors
- leadership style
- objectives
- size of business
External factors
- market conditions
- stakejolder power
- gov policies
How managers and leaders should manage relationships with stakeholders, including the use of communication and consultation
Open and transparent communication
Addressing specificly
Active listening
Regular uodates
Engage in consultation
Crisis / conflict Management
Ethical, use multiple channels
Feedback Mechanisms
Long-term relationship building
Set clear expectations
