3.2 Decision Making/ Management Styles

A leader

someone who sets the vision, guides and motivates people towards it

A manager

sets objectives and targets for the business for which they are responsible for

Authoritarian

Holds control, makes decisions independently and makes employees do exactly what they want.

Paternalistic

A leadership style that acts like a parental figure. Makes decisions for employees' best interest

Democratic

Takes views of employees. Collaborative decision making.

Laissez Faire

Leaders step back and allow their teams to work with minimal guidance.

Theory X

portrays workers as lazy, unmotivated, needing control.

Theory Y

portrays motivated, self directed, seeking responsibility.

hunch based decisions (Intuition)

It is trusting your gut and what you think without using data.

Scientific decision making

Using data to make decisions

Stakeholders

an individual or a group that has an effect on activities in a business

Decision Trees

Stakeholder Mapping

Tannenbaum Schmidt Continuum

Advantages of Authortarian

1. Quick decision making

2. Clear direction/vision

3. Individuals understand and have clear roles

Advantages of Paternalistic

1. Improved decision making

2. Employee morale goes up

3. Motivations/Productivity increases

Advantages of Democratic

1. Team members are engaged

2. Encourages creativity/diverse ideas

3. Team members take ownership

Advantages of Lassiez-faire

1. Job satisfaction

2. Creativity/Innovation

3. Allow experts to specialise in their area

Decision Tree - Square

Decision

Decision Tree - Circle

Chance

Expected Value

(probability x monetary outcome) for each possible outcome

Net Gain

Expected value - Cost investments