Managers, leadership and decision making (2) Flashcards

(47 cards)

1
Q

What is leadership?

A

A relationship whereby one person influences the behaviour and actions of others?

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2
Q

Manager vs leader

A

Manager- enacts the plan, uses authority, manages risk, has subordinates
Leader- inspires, builds relationships, takes risks, has followers

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3
Q

What’s the role of a manager?

A
  • Set targets
  • Analyse situation
  • Assess available resources
  • Make a clear decision
  • Review decision……..
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4
Q

How did Peter Drucker compare managers and leaders?

A

Peter Drucker said “Management is doing things right; leadership is doing right things”

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5
Q

What external factors can affect management and leaders?

A

Economy -e.g. survival needed in a recession
Speed of change in the industry
Legal change

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6
Q

What internal factors can affect management and leaders?

A
  • Skill and experience of the workforce
  • Work involved
  • The natural style of the leader
  • Time limit- quick decisions may be needed
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7
Q

Who created the x and y worker theory?

A

Douglas Mcgregor (1960)

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8
Q

What does the x and y worker theory show?

A

Hows managers beliefs about workers and what motivates them influences their style of leadership.

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9
Q

What is the theory x worker view?

A

Pessimistic view which assumes workers dislike work, lack ambition and prefer to be led, desire security, ate motivated financially.

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10
Q

What is the theory y worker view?

A

An optimistic view which assumes workers enjoy taking ownership of work, work is fulfilling and challenging and the workers are motivated through a multitude of factors.

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11
Q

What are the limitations of the x and y worker theory?

A
  • Simplistic
  • Hard to clearly categorise
  • Workplaces may be a mix
  • Nature of work will affect the attitudes of employees
  • Cultural and generational gaps may impact
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12
Q

How has leadership changed over time?

A

Leaders are focusing less on command and control and more on inspiring employees and shaping a business culture.

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13
Q

Why has there been a change in leadership?

A
  • There is more delegation which needs teamwork
  • The market is rapidly changing
  • More legislation
  • More skilled workforce
  • Changes in societal values
  • More focus on soft skills
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14
Q

What are the four main leadership styles?

A
  • Authoritarian/autocratic
  • Paternalistic
  • Democratic
  • Laissez-faire
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15
Q

What is an autocratic leadership style?

A
  • The focus of power is with the manager, one-way communication
  • Rewards and penalties are used
  • Very little delegation
  • Mcgregor Theory X approach
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16
Q

What is a paternalistic leadership style?

A
  • Like autocratic but leader decides what is best for employees
  • Links with Mayo (addressing employee needs)
  • Like a parent and child relationship
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17
Q

What is a democratic leadership style?

A
  • The focus of power is with the whole group
  • Leadership functions are shared
  • Employees have greater involvement in decision making
  • Emphasis on delegation and consultation
  • More likely used for highly skilled workers
  • Trade-off between productivity and morale?
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18
Q

What is a laissez-faire leadership style?

A
  • The leader has little input into decision making
  • Conscious decision to delegate power
  • Managers and employees make decisions by themselves
  • Most effective when staff are highly motivated
  • Not the same as abdication (having no leader)
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19
Q

What are the limitations of the 4 styles of leadership?

A
  • Depends on individual managers
  • May have a mixed leadership culture
  • Employment laws mean authoritarian styles arent possible
  • Different scenarios may change the style
  • Differences in culture
  • Employees may react differently- leaders need to adapt
20
Q

What is the Blake Mouton grid?

A

A grid, designed by Robert Blake and Jane Mouton, which identifies 5 leadership styles when comparing concern for employees and concern for performance.
A (9,9) indicates the best manager with the highest concern for both.

21
Q

What are the 5 management styles in the Blake Mouton grid?

A

(1,1) Impoverished management: low concern for people and performance
(9,1) Produce-or-perish: high concern for performance, low concern for people
(1,9) Country club: high concern for people, low concern for performance
(9,9) Team management: high concern for people and performance
(5,5) Middle of the road: equal concern for both, however, this is considered one of the worst styles

22
Q

What is the 1973 Tannebaum and Shmidt continuum?

A

A dynamic chart which uses the single variable of staff involvement in decision making.

23
Q

What does the far left of the Tannebaum and Shmidt continuum show?

A

A manager-centred leadership where managers maintain full authority and control, they “tell” employees what to do and they must comply. It is similar to an autocratic leadership approach.

24
Q

What does the far right of the Tannebaum and Shmidt continuum show?

A

An employee-centred leadership where employees are given full authority and decision making power. The manager ‘joins’ the employees in making decisions. It is a democratic leadership approach.

25
What are the stages of the continuum (L 2 R)
Tells: the manager makes a decision and tells the team, expecting it to be implemented Sells: manager makes the decision and explains to the team to reduce resistance Consults: Leader gets suggestions from the team and makes a final decision based on them Joins: manager asks group to make a decision within set limits
26
What are the two types of decision making?
- Hunch decision making | - Scientific decision making
27
What is hunch decision making?
When a decision is based on intuition, gut feeling and experience. It is a quick method but hard to justify high-risk decisions. More experienced managers tend to rely on hunch decision making.
28
What is scientific decision making?
When decisions are made based on evidence with a systematic approach. Data and analysis are used which can be time-consuming and costly however it is becoming increasingly common and automated. It makes use of data analysis and big data.
29
What is opportunity cost?
The cost of missing out on the next best alternative ie. the benefit lost when choosing something.
30
What are the key influences on decision making?
- Business objectives/budgets. - Organisational structure - External environment (PESTLE model) - Attitude to risk- business culture - Availability and relability of data
31
What is a decision tree?
A mathematical model which uses estimates and probabilities to calculate likely outcomes and if the net gain from a decision is worthwhile.
32
What is the expected value in a decision tree?
The financial value of an outcome, calculated by multiplying the estimated financial effect by probability.
33
What is the net gain in a decision tree?
The value gained from taking a decision. | Calculated by adding the expected values of each outcome and deducting the costs.
34
What are the pros of a decision tree?
Choices are set out in a logical way Potential options & choices are considered at the same time Use of probabilities enables the “risk” of the options to be addressed Costs are considered as well as potential benefits Easy to understand & physical results
35
What are the cons of a decision tree?
Probabilities are just estimates Uses quantitative data only – ignores qualitative aspects of decisions Probabilities and expected values prone to bias Decision-making technique doesn’t necessarily reduce the amount of risk
36
Probability tree steps
Add all possible decisions and outcomes on the tree, also add the decision of doing nothing Add costs, probabilities and financial results for each outcome Calculate the expected value and the net gain for each decision to see which is the better
37
What is a stakeholder?
Any individual or organisation with a vested interest in the activities and decision making of a business.
38
What are internal stakeholders?
They exist within the business e.g. employees and shareholders
39
What are connector stakeholders?
They are connected to the business based on contract e.g. customers, suppliers, creditors
40
What are external stakeholders?
They are connected but don't have a contract with the business e.g. competitors, government, society
41
How can stakeholders be mapped?
Using Mendelow's power/interest matrix
42
What are the four sections on Mendelow's matrix?
Low power, high interest : put in minimal effort Low power, high interest: keep informed High power, low interest: keep satisfied High power, high interest: key players, engage with regularly
43
What is The CSR shareholder theory?
CSR/ corporate social responsibility is a concept whereby companies integrate social and environmental converts into their business operations and in their interaction with their shareholders on a voluntary basis.
44
Who came up with the CSR theory?
R. Edward Freeman (1984)
45
What are the benefits of CSR?
—-
46
What is the free market view?
The only job of a business is to create wealth for shareholders.
47
Who came up with the free market view?
Milton Friedman (1970)