3.2: managers

• autocratic leadership


  leaders have all/most power in decision making and control

  top down/one way communication

  lack of delegation

  used with unskilled employees
• pros & cons of autocratic leadership


  + high control over employees

  -lack of innovation
• paternalistic leadership


  seen similar to a parent child relationship. employees have little say in decisions; managers are likely to explain reasons for decisions but one they are made
• pros and cons of paternalistic leadership


  + increased motivation

  + lower staff turnover

  -still limited innovation
• laissez faire leadership


  leader has little to no say in deicisions. employees are trusted and high skilled (leadership used in high skilled industries). they make day to day decisions as there is delegation of power.
• pros and cons of laissez faire leadership


  + motivated employees

  + responsibility of staff (they are accountable)

  + high staff retention

  -conflict

  -lack of leader involvement
• democratic leadership


  leadership and power is shared within the group, allows employees to give input. consultation and delegation used by manager has the final say
• pros and cons of democratic leadership


  + engages employees

  + better motivation

  + ability to innovate

  + engagement

  -slow/time consuming

  -subject to error
• leadership -> leading a group of people or organisation to achieve a goal
• management -> dealing with and controlling people; responsible for the company
• management

  • respected
  • trusted
  • problem solver
  • direct and manage
• leadership

  • inspiring
  • innovators
  • natural abilities
• scientific decision making


  making a decision based on evidence and quantitative data.

  + evidence based so you are able to produce trends

  _ reduces creativity~

  _ can be bias

  _ out of date or inaccurate
• intuitive decision making


  using feelings, thoughts and opinions to make a decision

  + allows for creativity and innovation

  _ bias
• decision trees


  used to analyse the probability of a possible success, a quantitative approach that helps decide which is most profitable
• decision trees

  
• expected value calculation


  (probability success x payoff) + (probability failure x payoff)
• an entrepreneur is a person who takes risks to start a business and is willing to accept the consequences of their actions
• internal risks

  • staff not coming to work (HR)
  • costly mistakes (HR)
  • failed marketing (marketing)
  • poor reputation (operations)
  • low demand (finance)
• external risks

  • competiton
  • inflaction
  • laws
  • supply chains
• Opportunity Cost


  The value of the next best alternative that is given up when a choice is made
• stakeholder mapping 


  satisfy -> satisfy needs in order for them to remain strong advocates

  manage -> involve in decision making

  monitor -> inform them to encourage interest

  inform -> use their input to develop ideas

  
• examples in stakeholder mapping

  satisfy -> parliment, government etc

  manage -> investors

  monitor -> community

  inform -> customers