2.1.1 U NDERSTANDING MANAGEMENT, LEADERSHIP AND DECISION MAKING AQA Business 2 M ANAGERS, LEADERSHIP...
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Transcript of 2.1.1 U NDERSTANDING MANAGEMENT, LEADERSHIP AND DECISION MAKING AQA Business 2 M ANAGERS, LEADERSHIP...
2.1.1 UNDERSTANDING MANAGEMENT, LEADERSHIP AND
DECISION MAKINGAQA Business
2 MANAGERS,LEADERSHIP AND DECISION MAKING
Are managers and leaders the same?
Think of examples from the worlds of:
• Sport• Music• Politics• School/college• History• Part time jobs/work experience
2 .1 .1 UNDERSTANDING MANAGEMENT , LEADERSH IP AND DEC IS ION MAK ING
In this topic you will learn about
What managers do
Types of management and leadership styles and influences on these
The effectiveness of different styles of management and leadership
How significant is the role of managers in determining business performance?
MANAGERS AND LEADERS
Leadership is the ability to influence and direct people in order to meet the goals of a group
Management is the process through which company resources are used and decisions made in order to meet the objectives of the firm
Leaders are those people that can inspire and motivate people to meet objectives
Managers will set objectives and decide how to go about achieving them
Often leaders and managers are one and the same person
WHAT MANAGERS DO
The role of managers includes:
Setting objectives targets to be achieved within a given time period
for individuals and teams
Analysing factors contributing towards the achievement of objectives
business performance
WHAT MANAGERS DO
The role of managers includes:
Leading communicating objectives and directing subordinates to
achieving these goals
motivating subordinates
Making decisions allocation of resources
day to day running of the business
Reviewing monitoring performance against objectives
taking action as necessary
Further reading on the role of a manager.
IN PAIRS
Review the 3 job descriptions below for a retail, office and restaurant manager
Identify the similarities and differences
Write a generic job description for all managers
Remember in the
examinations you will need to be able to apply your
knowledge to a range of
scenarios.
FA C T O R S T H A T I N F L U E N C E L E A D E R S H I P S T Y L E S
Internal Factors
There are a number of internal factors that influence the style of leadership:
The expertise and experience of the workforce
The skills required for the work to be done
The personal traits of the leader
The power given to the leader
The time frame associated with the task to be undertaken
What traits would you
look for in a leader?
FA C T O R S T H A T I N F L U E N C E L E A D E R S H I P S T Y L E S
External Factors
There are a number of external factors that influence the style of leadership:
The political and legal environment
The economic environment
The social environment
The technological environment
Changing nature of the industry
L E A D E R S H I P S T Y L E S
Autocractic (Authoritarian) – the leader makes a decision without consultation e.g. in the army when quick decisions are required in battle
Democratic – the leader consults his team but makes the final decision e.g. a skilled workforce where each team member can make strong contributions
Laissez-Faire (to leave alone) – the leader allows his team to make decisions e.g. experienced and competent staff given freedom to make decisions themselves
Paternalistic – the leader acts in a fatherly way towards the workforce – making decisions based on the needs of the workforce as well as the business e.g. often family or smaller organisations with a more caring style of leadership,
Bureaucratic – leaders work to rules and regulations, ‘by the book’, e.g. in bureaucratic organisations where the culture is very much led by the rules
Think of a situation
where you have been the leader. Which
leadership style did you
adopt?
MANAGEMENT AND LEADERSHIP STYLES
Theories of management and leadership styles include:
The Tannenbaum Schmidt continuum Leadership model based on a spectrum between two
extremes of manager centred and subordinate centred approaches
Recognises that in reality leaders are unlikely to be at either extreme but somewhere along the spectrum
The Blake Mouton grid Leadership model based on two behavioural dimensions
of concern for people or concern for production which identifies 5 leadership styles
Read Richard Branson's top 10 quotes on leadership.
TANNENBAUM SCHMIDT CONTINUUM
The Continuum Theory looks at 7 levels of delegation from:
1 no delegation to
7 highly delegated
TANNENBAUM SCHMIDT CONTINUUM
1. Manager takes and announces decisions2. Manager sells decision3. Manager presents decision with ideas and invites questions4. Manager suggests provisional decision and invites discussion5. Manager presents the situation, gets feedback and then decides6. Manager explains, defines parameters and asks team to decide7. Manager allows team to develop options and decide on action based
within managers limits
Why might a leader
change their style based upon the situation?
TANNENBAUM SCHMIDT CONTINUUM
From this continuum there are four categories of leadership identified:
Sells
Tells
Consults
Participates
Discuss each of the points 1 – 7 along the continuum.Allocate numbers to each of the 4 categories above.
With reference to the continuum. Explain each of the 4 categories in your own words.
TANNENBAUM SCHMIDT CONTINUUM
The approach that the manager will adopt will vary and depend upon:
The forces in the manager Personality and characteristics
Experience
Attitude towards and trust in subordinates
The forces in the subordinates Personality and characteristics
Experience
Attitude towards and trust in leader
The forces in the situation The nature of the problem/situation
Resource constraints including time
The culture of the organisation
BLAKE MOUTON GRID
The grid shows five leadership styles
the first number shows the task orientation i.e. the concern for production
the second number shows the employee orientation i.e. the concern for people
BLAKE MOUTON GRID
1,1 Impoverished management
An impoverished or indifferent style
Little concern for people or task
Management avoid responsibility and accountability
Blames others
1,9 Country club management
An accommodating style
Motivates and engages by looking after the needs of employees
Relaxed atmosphere with no pressure to meet targets or get work done
Social nature of the workplace is important
BLAKE MOUTON GRID
9,9 Team management
A team style
Managers show high concern for both people and production
Treats workers as a core asset
Achieve productivity goals as a team
9,1 Authority obedience
A produce or perish style
Managers want to control and dominate workers
Orders must be followed
Workers are treated as a resource like any other
BLAKE MOUTON GRID
5,5 Organisation man management
A middle-of-the-road style
Compromise is made between concern for people and concern for production
May influence corporate objectives e.g. an objective of profit satisficing over one of profit maximisation
Which style of leadership would best suit you in relation to your academic studies? Justify your answer.
BLAKE MOUTON GRID – IN PAIRS
In pairs think about big businesses with which you are familiar. Carry out some research to help support your decisions. Place each business on the matrix below.
SHOW OFF YOUR KNOWLEDGE
Can you use the leadership styles on the left to explain:
Tannenbaum Schmidt continuum
Blake Mouton grid
Autocratic Democratic
Laissez-Faire
Paternalistic
Bureaucratic
THE EFFECTIVENESS OF DIFFERENT STYLES OF
MANAGEMENT AND LEADERSHIP
Effectiveness means:
the ability of a business to achieve its objectives e.g. financial performance, competitive advantage and social
Different styles will be effective in different businesses and situations:
a laissez faire or subordinate centred style may work in an environment where employees are highly skilled with an objective of innovation
Where quick decisions need to be made and a situation handled such as a work place accident or environmental disaster an autocratic manager centred approach will be more effective
2 .1 .1 UNDERSTANDING MANAGEMENT , LEADERSH IP AND DEC IS ION MAK ING
In this topic you have learnt about
What managers do
Types of management and leadership styles and influences on these
The effectiveness of different styles of management and leadership