Understanding management,Leadership and decision making Flashcards
(32 cards)
What do leaders do?
Some theorists say that a manager and a leader are the same thing, but often managers fail to lead and sometimes, leaders appear who are not necessarily managers.
Leaders need to be visionaries, seeing where an organisation is going and how it can flourish in an ever changing world
Leaders will guide an organisation through change and have a clear idea of how to get through the chaos.
Leaders are motivators.
Peter Drucker (a management theorist) simply thought that
‘A leader is someone who has followers’
Whereas management is the process of setting objectives and taking decisions to make the most effective use of a business’s resources.
Different meanings of leadership
- Getting others to follow
- The use of authority in decision-making
- A personal characteristic
- An ability to achieve effective performance in others
- A relationship through which one person influences the behaviour or actions of other people
Leadership perspectives
-Traditional view Command & Control Decision-making -Modern view Inspiration Creating a vision Building effective teams
The characteristics of a leader
Leaders may be born to it, or may react to circumstances! But similar traits are found in most leaders:
Expertise: you need to be good at your job and understand the jobs of others around you.
Focus: be able to complete a job
Flexibility: be able to change direction if the need arises.
Responsibility: personal integrity
Self motivating and full of self confidence.
Motivator: be able to motivate others to the cause
Accept responsibility, even when it all goes wrong.
Leadership or Management ?
Leaders:
Inspire people
Build relationships
Take risks
Have followers
Managers : Enact the plan Use their authority Manage risks Have subordinates
What do managers do?
Managers run businesses but how? The classical management theory suggested by Henri Fayol identifies 5 key roles:
Planning: managers look to the future and prepare the business for what is to come.
Organising: managers must organise resources to achieve their objectives.
Commanding: managers must direct activities and motivate their subordinates.
Co-ordinating: managers must ensure that a variety of tasks are coordinated to achieve their objectives.
Controlling: managers must monitor what is going on and judge if they are being successful.
Planning
- Setting objectives
- Conducting analysis
- Drawing up plans
- Estimating the resources required for any plans.
Organising
- Is a key aspect of what managers do.
- Without the ability to organise the resources, whether Labour or Capital.
Directing & Commanding
Directing :
- Directing others means management is able to influence the behaviour of staff.
- Directing employees well requires managers to have the ability to communicate and motivate the workers.
Commanding:
-managers must direct activities and motivate their subordinates
Controlling
Involves setting targets, and reviewing and reporting on the performance of the business.
Managers often compile reports.
What managers do
All four stages of what managers do, Planning, Organising, Directing and Controlling require managers to make decisions
Managerial roles
Mintzberg suggested that managers perform three important roles:
Interpersonal roles: managers have a leadership role to perform and must motivate their staff. They must also network with other managers and represent the company to the outside world.
Information roles: managers act as channels of information between departments, other managers and members of staff.
Decision making roles: managers make decisions
Mintzberg’s Conclusions
Manager’s work is often fragmented, as they are pulled in many directions moving from one task to another. (Multi-Tasking) or Fire fighting, as things happen to them and they control very little.
However, Mintzberg concluded from his studies is that what makes a difference is that 80% of the results are usually the result of only 20% of the decisions. The trick is to work out what is the 20% that makes a difference and focus on that!!
Types of Management and Leadership styles
Trait Theory- Look at the characteristics of great leaders and managers. What do they have in common.
Behavioural Theories- How the managers behave. Two broad focuses, People focused (Considerate), or Task Focused (Initiating)
McGregor’s Theory X & Theory Y
In 1960 Douglas McGregor looked at management and came up with two contrasting management views, X & Y. About how leaders view their workers:
Theory X: workers don’t like work are lazy, irresponsible and untrustworthy. They are only interested in money and need to be closely controlled.
Theory Y: workers love work, money is just one factor that motivates them. They want responsibility and to satisfy higher order needs.
Theory X relates to the scientific school of management (control and hierarchy) and theory Y is more about the human relations school (empowerment)
Tannenbaum and Schmidt
A “continuum” of leadership behaviour
Continuum represents a range of action related to the:
-Degree of authority used by the manager
-Area of freedom available to non-managers
Links with Theory X (boss-centred leadership) & Theory Y (subordinated-centred leadership)
Tannenbaum and Schmidt (2)
Four Main Styles of Leadership
- Tells : Manager identifies problems, makes decision and announces to subordinates; expects implementation
- Sells : Manager still makes decision, but attempts to overcome resistance through discussion & persuasion
- Consults : Manager identifies problem and presents it to the group. Listens to advice and suggestions before making a decision
- Joins : Manager defines the problem and passes on the solving & decision-making to the group (which manager is part of)
What is a leadership style?
The way that the functions of leadership are carried out
The way that a leader behaves
Broad classifications of leadership style
1) Authoritarian
2) Paternalistic
3) Democratic
4) Laissez-faire
Autocratic
Authoritarian leaders: subordinates are expected to obey and carry out instructions.
This can be a good thing, if you have a great leader who communicates his instructions clearly. It may also work when strong discipline is needs, for example in the army.
On the other hand, today’s educated workforce are better able to take decisions and may be de-motivated if they are constantly told what to do.
Authoritarian
Focus of power is with the manager Communication is top-down & one-way Formal systems of command & control Use of rewards & penalties Very little delegation McGregor Theory X approach
Paternalistic
A paternalistic leader acts in an authoritarian manor, but places a great importance in the welfare of subordinates.
Profit will not be the prime motive running the business, but rather the worker’s welfare. Staff realise this and become very loyal to their leaders.
- Leader decides what is best for employees
- Links with Mayo – addressing employee needs
- Akin to a parent/child relationship
- Still little delegation
- A softer form of authoritarian leadership
Democratic
Participative leadership is where leaders allow subordinates to be involved in decision making.
Involving staff in decisions leads to greater commitment and motivation and so many businesses now encourage this style. Modern workers are better educated and more able to make decisions on their own.
On the down side, a democratic system and result in a lack of direction and communication must be very good if there is to be clarity.
- Focus of power is more with the group as a whole
- Leadership functions are shared within the group
- Employees have greater involvement in decision-making
- Emphasis on delegation and consultation
- A trade-off between speed of decision-making and better motivation and morale?
Laissez faire
Laissez faire (let it be) leaders allow subordinates to make decisions rather than making them themselves. Decisions may be made at random and the leaders will offer no more than advice. This form of leadership often leads to a lack of direction and purpose.
- Leader has little input into day-to-day decision-making
- Conscious decision to delegate power
- Managers / employees have freedom to do what they think is best
- Effective when staff are ready and willing to take on responsibility
- Not the same as abdication
