Topic 2: Management & Leadership Style

• Autocratic leadership


  leaders/managers makes decisions on their own
• Democratic leadership


  leaders/managers encourages the workforce to participate in the decision making process
• Laissez-faire


  the leadership allows their team to make their own decisions
• Tannenbaurm Schmidt Continuum


  is a model that shows the relationship between the level of freedom in decision making a manager gives to the workers
• McGregor's Theory X


  is a management theory that assumes employees are naturally unmotivated and dislike work
• McGregor's Theory Y


  is a management theory that assumes employees are self-motivated, enjoy their job, and work towards achieving goals.
• The Blake Mouton Grid


  a grid used to define managers according to how much they care about their employees and about the production
• Country Club Style


  the leader is more concerned about the team's needs and feelings than about getting the job done
• Impoverished Style


  low concern for production, low concern for people
• Produce or Perish Style

  high concern for production, low concern for people
• Team Style


  high concern for people, high concern for production
• Middle of the Road


  Average concern for people and production
• Scientific Decisions


  decision making based on data and information that uses a logical and rational approach
• Intuition


  decision making based on an individual's instinct or gut feelings
• Opportunity Cost


  cost of the next best alternative foregone
• Programmed Decisions


  familiar and routine decisions
• Non-Programmed Decisions


  Less structured and require unique solutions
• Decision Tree


  a model that shows possible decisions and their expected outcomes based on probability
• Expected Value


  The financial value of an outcome

  EV = (Probability 1 x Outcome A) + (Probability 2 x Outcome B)
• Net Gain


  the value to be gained from taking a decision

  Net gain = EV - cost of investment
• Stakeholder


  any individual or group who has an interest in the activities and performance of a business
• Stakeholder Mapping


  a map that identifies how much interest and power over the business different stakeholders have
• What is the role of a manager?

  Setting objectives

  Analysing

  Leading

  Making Decisions

  Reviewing
• Manager


  organise the workforce and control the functions of the business
• Leaders


  those who set the direction and strategy for the business
• Advantage of Autocratic


  Quick decision making

  Clear chain of command -> streamlining communication

  Effective in a crisis
• Disadvantage of Autocratic


  Lots of supervision and monitoring

  High turnover and resistance

  Lack of employee empowerment

  Reduced morale and motivation
• Advantage of democratic


  Employees feel apart of the workforce

  Improved communication and collaboration

  Drives Innovation
• Disadvantage of democratic 


  Not effective in all situations e.g. crisis

  Conflicts may occur in decision making

  Slow decision making/ time consuming
• Advantage of country club style 


  Positive working environment

  Employee satisfaction and morale
• Disadvantage of country club style


  Lack of accountability

  Prioritising harmony rather than achieving results
• Advantage of teamworkstyles


  Promotes collaboration and teamworking

  Encourage engagement
• Disadvantage of teamwork styles

  Time consuming

  May results in conflict -> requires effective communication and coordination for smooth function
• Advantage of impoverished style


  No advantages at all, the least effective style
• Disadvantage of impoverished style


  Poor performance

  Lack of direction and motivation

  e.g. neglected retail
• Advantage of produce or perish


  Aims high level of performance and achievement

  Shows emphasis results on productivity and performance
• Disadvantage of produce or perish


  High pressure on workforce

  Discourages creativity and innovation as they only focus on output
• Advantage of Scientific Decision making


  Reduces the risk and bias

  Accuracy

  Shows transparency
• Disadvantage of Scientific Decision making


  Costly and time consuming

  Takes away the human element

  Less creative/original
• Advantages of intuition


  Quick and based on past experiences

  Creativity