3.2 Managers, Leaders & Decision-Making

Leadership is the way in which one person influences the behaviour or actions of other people.
1. Leaders command and control a business and to take decisions
Modern days leaders
1. Inspire people
2. Creating a vision
3. Shaping the core values
4. Building effective teams
Leadership is increasingly important in a business, becoming vital.
1. Flatter hierarchies, greater use of delegation
2. Increasing emphasis on teamwork
3. Coaching, support & empowerment
Leaders
1. Set the strategy and objectives
2. Inspire people
3. Build relationships
4. Take risks
5. have followers
Manager
1. Implement the strategy
2. Co-ordinate resources
3. Use their authority to take decisions
4. Manage risks
5. Have subordinates
Leadership Styles (how leaders behave)
1. Authoritarian leader
  1. Focus on power
  2. communication is top-down
  3. Command & Control
  4. Reward & penalties
  5. Little delegation
2. Paternalistic Leader
  1. Leader decides what is best for employees
  2. Mayo (motivation
  3. Akin to parent
  4. little delegation
  5. softer than authoritarian
3. Democratic Leader
  1. Focus of power is more with the group as a whole
  2. Employees have greater involvement
4. Laissez-faire Leader
  1. Little input into day-to-day decision-making
  2. Conscious decision to delegate power
  3. Managers/employees have the freedom to do what they think is best
Tannenbaum and schmidt
1. Range of potential leadership and management Styles
2. TELLS
  1. Manager makes decisions & tells staff
3. SELLS
  1. Manager sells decisions to his staff
4. CONSULTS
  1. Presents ideas invites questions, gets suggestions and makes decisions
5. JOINS
  1. Ask a group to make decisions within a limit
Blake Mouton Grid
1. Low concern for people & Low concern for task = impoverished management
2. Low concern for people & High concern for task = Task management
3. High concern for people & low concern for ask = Country club
4. High concern for people & high concern for task = Team management
Decisions are at the heart of the business
1. Hunch = based on intuition, gut feeling and experience, quick and cheap.
2. Scientific = based on data and analysis, time-consuming and costly, no 100% certain of right decision, big data
  1. 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).
1. 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)
  1. Expected value = Financial value of outcome (multiply £ by probability)
  2. Net gain = Value gained from taking a decision. (Add together the expected value of each outcome and subtracting the costs associated with the decision
2. Benefits of a decision tree
  1. Set out in a logical way
  2. Options & choices considered at the same time
  3. Probabilities enable the "risk"
  4. Likely costs are considered
3. Drawbacks of a decision tree
  1. Just estimates prone to error
  2. Quantitive data only, ignores quanlitive data
    1. Bias?

Next up

3.2 Managers, Leaders & Decision-Making

Description

Resource summary

Similar

	Created by oscar Waller almost 7 years ago