3.2

• stakeholder mapping (mendelows matrix)

  low interest, low power - minimum effort

  low interest, high power - keep satisfied

  high interest, low power - keep informed

  high interest, high power - key players
• Autocratic leadership

  May demotivated employees

  Managers make all decisions

  Quick decision making

  Good in crisis situations
• Democratic leadership

  Decisions made with employees

  May improve employee motivation

  Slower decision making
• Paternalistic leadership

  Decisions made in employees best interest

  Managers take most responsibility

  Employees feel valued

  Employees may become dependent on manager
• Laissez faire leadership

  Can motivate workers

  Good for high skilled and well trained employees

  Decision making is time consuming

  Could lead to chaos
• Mcgregor x managers see employees as lazy, don't want responsibility and only motivated by money
• Mcgregor y managers see employees as willing for responsibility and motivated by many factors and enjoy work
• Tannenbaum and Schmidt

  Tell

  Sell

  Consult

  Join
• Blake Mouton Grid

  Low concern for task, low concern for people - impoverished

  Low concern for task, high concern for people - country club

  High concern for task, low concern for people - task manager

  High concern for task, high concern for people - team manager
• Scientific decision making

  1. Set objectives
  2. Gather data
  3. Analyse data
  4. Select strategy
  5. Review strategy
• Intuitive decision making is following a hunch and using your own judgement but this can be affected by bias. Faster than scientific decision making and good if SDM is out of date or flawed
• Scientific decision making uses data, objectivity and factual evidence to base all decisions
• Decision tree

  Quantitative data

  Allows for objective decision making

  Easy to do

  Some values are difficult to accurately calculate
• Different stakeholder groups

  C ustomer

  E mployee

  G overnment

  S hareholder

  I nvestor

  S upplier

  C reditor

  B oard of directors

  T rade union
• Internal stakeholders

  S hareholders

  E mployees

  O wners

  M anagers

  B oard of directors
• External stakeholders

  S uppliers

  C ustomers

  C ompetitors

  G overnment

  I nvestors

  T rade unions
• Difference between leadership and management

  Leadership is deciding on the direction for the business, setting objectives and motivating staff to achieve objectives

  Management is getting things done by planning, organising people and resources
• Choosing between scientific and intuitive decision making

  Speed needed

  Information available

  Size of business

  Predictability of situation

  The type of person
• Advantages of decision making

  Set out problem clearly and logically

  Encourages consideration

  Quantitative approach

  Useful for tactical decisions

  Useful for when similiar scenarios have happened so estimates are more accurate
• Disadvantages of decision making

  Ignores the change of business environment

  Difficult to get accurate and realistic data to estimate well

  Easy for bias to influence and manipulate data

  Less useful for one off decisions

  Can't be made just objectively as need subjective elements too

  May ignore qualitative data
• Shareholder needs as a stakeholder

  High profit levels to gain high dividends

  Positive corporate image

  Long term growth so share prices can rise
• Employees needs as a stakeholder

  Job security

  Good working conditions

  High pay

  Opportunities for promotion

  To be consulted about changes that could affect them
• Managers needs as a stakeholder

  High status

  High pay and bonuses

  Job security

  Good working conditions
• Trade unions needs as a stakeholder

  To be consulted and actively take part in decision making process to ensure policies and strategies benefit their members
• Customer needs as a stakeholder

  High quality products

  Fair prices

  Good service

  Wide choice
• Supplier needs as a stakeholder

  Regular orders

  Prompt payment

  Fair prices

  Updated on changes
• Banks and investors needs as a stakeholder

  Full payments

  Prompt payments
• Government needs as a stakeholder

  Provide employment

  Provide training

  Comply with legislation

  Use resources efficiently
• a traditional stakeholder approach mainly prioritises shareholders out of all stakeholders when making decisions for the business
• a modern stakeholder approach considers all stakeholders when making decisions. also thinks of ethics and social media not just profit
• when a manager is performing good then you can increase their responsibilities, find ways to learn from them and reward them
• when a manager is performing badly then you can redeploy , provide training courses and support them to help them improve
• factors determining if decision making is good or not

  speed

  outcome

  involvement

  breadth of research

  capability

  unintended consequences
• decision tree analysis

  tool for scientific decision making

  pictorial approach

  uses quantitative data

  allows for objectivity

  straightforward

  however their is some estimation
• why do we analyse manager performance

  to suggest improvements, to ensure they are achieving objectives, ensure they are aligned with the organisation and culture, to provide opportunities for organisational learning, to see if they are underperformed or overachieveing
• how can you analyse manager performance

  looking at turnover rate, productivity levels, their concern for people, conducting some research by interviews and observations
• shareholder value is measures on

  share price

  dividends

  reputation

  shareholders prioritise these things