3.2mangers, leadership, decision making

leadership

leading a group of people or an organisation, or the ability to do this

management

dealing with/ controlling things or people, the responsibility for and control of a company/ organisation

types of leadership

autocratic

democratic

paternalistic

laissez faire

autocratic

makes decisions with little impute, dictates work methods

Mcdonalds

autocratic adv

employees know what they are doing

clear chain of command in hierarchy

quick decisions

useful in life or death situations ( public services)

autocratic disadvantage

employees feel like they have no control/ value

no motivation

culture of dependency

ignores creative solutions

employees not satisfied

democratic

employees help in decision making, allowing collaboration, higher degree of participation, leader decides who contributes to decisions

Apple

democratic adv

motivated

community

tackle problems not seen

autonomy

staff retention

grow into roles

benefit from ideas

democratic dis

information loss / bad communication

employees not trained to make decisions

long decision making

may have their own agenda/ unreliable

paternalistic

leader makes right decision for employees they are responsible for, expects trust and loyalty, thinks about their welfare

Cadbury

paternalistic adv

loyalty from employees bc they will feel cared for

low turnover will reduce recruitment costs

effective for low skilled inexperienced employees who need guidance

paternalistic dis

wrong decision may cause then to feel demotivated

not using skills/ knowledge of employees

dictatorial style where they are told the outcome

laissez faire

employees makes decisions, expected to solve problems , leader responsible for them

corner shop

laissez adv

encourages development

suitable for creative spaces

fast decision making

allowes innovation ( high tech industries )

laissez dis

lack of supervision- poor productivity and motivation

blame culture

seen as avoidance of responsibility

scientific decision making

based on evidence and quantitative data

scientific adv

evidence based

supported decisions so it can be justified to higher ups

scientific dis

reduces creativity, slowing decision making

out of data biased data

intuitive decision making

using feelings opinions thoughts and qualitative data

intuitive adv

creative solutions

quick decision making gives first mover advantage

intuitive dis

biased to decision maker

may be bad call ( bloxbuster not buying netflix)

decision tree

analyses probability of success in â choice of strategies

new product launch, new marketing campaign, relocation

compares results too see which is most profitable

how to calculate expected value

( probability x payoff success) + (probability x payoff failure)

calculate net gain

expected value - cost of choice

risks

if business doesn’t plan for the future it loses competitors they must have a clear strategy plan to survive in a dynamic business world

weather- poor location decision

slow to reply to consumer trends

not maintaining equipment- break downs , loss of production

paying suppliers later - refusing trade credit and supplying raw goods

rewards

gained from good decision making

eg set up business- can be your own boss

uncertainty

high risks decisions- higher rewards

minimise uncertainty by reaching

opportunity cost

cost of making a choice/ sacrificing the next best alternative

eg making just wardrobes, losing out on door profit

ethics

moral principles, right from wrong, that govern the business

PESTAL analysis

political protection policies

economic interests rates

social demographic changes

technological automated production

legal national minimum wage

environmental pollution

stakeholders

anyone who has â interest in the business and is effected by the way or trades

owner (in)

profit

achieving objectives

employees (in)

job security

bills / pay

promotions

managers (in)

financial bonus if target is reached

budgets

targets

management costs

competition (ex)

what others are doing so they can plan head (competitive advantage)

price , promotion, marketing mix, supplier, management, HR

supplier (ex)

if they will be payed on time

future orders

building relationships so you can have a JIT system

customers (ex)

quality

prices

satisfying needs

availability of products

government (ex)

if it pays taxes

adhere to laws e.g Health and safety at work act

provide jobs for tax money

community (ex)

environment

noise

traffic

impact on house prices

shareholders and investors (ex)

if profit is made and dividends will be paid

plan

profit

stakeholder mapping

representative of groups/ organisations/ individuals that have â influence

mapped according to power, influence and interest over operatives

mapping

side - power

bottom - influence