3.2 Managers and leadership

• Tannenbaum and Schmidt’s continuum of leadership behaviour - shows the relationship between the level of freedom in decision makings that a manager gives to employees. As freedom for employees increases, a manager’s authority decreases

  
• Blake and Mouton’s leadership grid

  
• Mendelow’s matrix - tools used to categorise stakeholders accord to their power and their level of interest in a business (STAKEHOLDER MAPPING)

  
• Market mapping

  
• Decision trees
• Democratic leadership style 


  Based on decisions of the majority, slows decision making down but employees quality of work may improve if they have their say
• Autocratic leadership style


  Leader makes all decisions, so they are quick to make. However, this can lead to employees being dependent on mangers and are always under supervision.
• Laissez-faire leadership 


  Employees have the freedom to make their own decisions, works best with a creative and specialist group. However staff may lack focus
• Opportunity cost


  The cost of an investment, is it worth it?
• Scientific decision making 


  Decisions based off data and follows a logical and rational approach
• Intuition


  Making decisions based off a gut feeling, rather basing it off data and rational.
• Influences of decision making

  Mission and objectives

  Ethics

  External environemnt

  Comptition

  Resource constraints
• Stakeholders

  People who have an interest in the business e.g

  • shareholders
  • government
  • pressure groups
  • local community
  • customers
• Influences on stakeholder relationships

  Business objectives

  Leadership styles

  Government

  State of the economy

  Business culture