Zusammenfassung der Ressource
3.2 Managers, Leaders
& Decision-Making
- Leadership is the way in which one
person influences the behaviour
or actions of other people.
- Leaders command and control a
business and to take decisions
- Modern days leaders
- Inspire people
- Creating a vision
- Shaping the core values
- Building effective teams
- Leadership is increasingly important
in a business, becoming vital.
- Flatter hierarchies,
greater use of delegation
- Increasing emphasis
on teamwork
- Coaching, support
& empowerment
- Leaders
- Set the strategy and objectives
- Inspire people
- Build relationships
- Take risks
- have followers
- Manager
- Implement the strategy
- Co-ordinate resources
- Use their authority to take decisions
- Manage risks
- Have subordinates
- Leadership Styles
(how leaders behave)
- Authoritarian leader
- Focus on power
- communication is top-down
- Command & Control
- Reward & penalties
- Little delegation
- Paternalistic Leader
- Leader decides what is
best for employees
- Mayo (motivation
- Akin to parent
- little delegation
- softer than authoritarian
- Democratic Leader
- Focus of power is more with
the group as a whole
- Employees have
greater involvement
- Laissez-faire Leader
- Little input into day-to-day
decision-making
- Conscious decision to
delegate power
- Managers/employees have the
freedom to do what they think is best
- Tannenbaum and schmidt
- Range of potential leadership
and management Styles
- TELLS
- Manager makes
decisions & tells staff
- SELLS
- Manager sells decisions to his staff
- CONSULTS
- Presents ideas invites questions, gets
suggestions and makes decisions
- JOINS
- Ask a group to make
decisions within a limit
- Blake Mouton Grid
- Low concern for people & Low concern for
task = impoverished management
- Low concern for people & High
concern for task = Task management
- High concern for people & low
concern for ask = Country club
- High concern for people & high
concern for task = Team management
- Decisions are at the heart of the business
- Hunch = based on intuition, gut feeling
and experience, quick and cheap.
- Scientific = based on data and analysis,
time-consuming and costly, no 100%
certain of right decision, big data
- Expectations of all outcomes
- Opportunity Cost = is the cost of missing out
on the best next alternative. The benefits
gained of choosing the alternative method.
- Decision tree is a mathematical model used to help
managers make decisions (scientific).
- Used to estimate the probabilities to calculate likely outcomes.
Calculating these estimates helps to decide whether the net
gain from a decision is worthwhile (and expected value)
- Expected value = Financial value of outcome (multiply £ by probability)
- Net gain = Value gained from taking a decision. (Add
together the expected value of each outcome and
subtracting the costs associated with the decision
- Benefits of a decision tree
- Set out in a logical way
- Options & choices
considered at the same time
- Probabilities enable the
"risk"
- Likely costs are considered
- Drawbacks of a decision tree
- Just estimates prone to error
- Quantitive data only, ignores quanlitive data
- Bias?