AQA A Level Business - Management and Leadership

Flashcards on Management, Leadership, and Decision Making

Leadership

The action of leading a group of people or an organisation, or the ability to do this; to be in charge of, to show direction, to be superior to others.

Management

The process of dealing with or controlling things or people, the responsibility for and control of a company or organisation; to supervise, to be in charge of, to maintain control over resources.

Autocratic Leadership

Management make decisions with little or no input from employees; management dictates work methods and processes.

Benefits of Autocratic Leadership

Clear chain of command, quick decision-making, useful in stressful situations.

Drawbacks of Autocratic Leadership

Negative impact on motivation, ignores creative solutions, relies on leader's competency.

Democratic Leadership

Leaders allow employees to help in the decision-making process.

Benefits of Democratic Leadership

Employees are motivated and feel valued; business benefits from employee ideas.

Drawbacks of Democratic Leadership

Decision-making may take time; depends on employee skills; staff may have own agenda.

Paternalistic Leadership

A leader makes the right decisions for the employees, expecting loyalty and trust and taking their welfare into account.

Benefits of Paternalistic Leadership

Loyalty from employees, low employee turnover, effective with low-skilled workers.

Drawbacks of Paternalistic Leadership

Employees can become demotivated if the wrong decision is made; doesn't use employee skills; still a dictatorial style.

Laissez-faire Leadership

Employees can carry out activities and make decisions freely; work in a relaxed environment with little direction.

Benefits of Laissez-faire Leadership

Suitable for creative environments, encourages employee growth and innovation, allows for faster decision-making.

Drawbacks of Laissez-faire Leadership

Lack of supervision may lead to poor productivity; perceived as avoidance of responsibility; can lead to blame culture.

Tannenbaum and Schmidt Continuum

As management authority increases, freedom for subordinates decreases; managers display a range of styles depending on the situation.

Leadership Qualities

Inspires employees, motivates, original, develops employees, creates change.

Management Qualities

Directing and monitoring employees, problem solver, official position of responsibility, planners, organisers.

Paternalistic Leadership Style

Leader considers team members as part of a large extended family.

Autocratic Leadership Style

Command and control type of leadership; likes total control and does not encourage input.

Democratic Leadership Style

Leadership involves all team members in key decision-making based on collective feedback.

Laissez-faire Leadership Style

Opposite of autocratic; gives team members autonomy and full responsibility.