Business 2.3

Management

The process of planning, organizing, and coordinating the resources of a business in order to achieve organizational aims and objectives

-task orientated

-instruct and coordinate people

-have authority because of their position

-learned skills

-tend not to challenge the organization

Leadership

The process of influencing and inspiring others to achieve a goal, from completing a task to achieving corporate aims or objectives

-relationship orientated

-visionary

-subordinates listen to them because they are motivated/inspired

-natural instincts

Autocratic

leader holds absolute power and authority over decision-making, making all choices without seeking input or agreement from subordinates

-centralized structure

-little empowerment for employees

ADVANTAGES

-useful in situations that require quick decisions

-useful in situations when workforce in unskilled

-useful with new employees in an unknown field

DISADVANTAGES

-top-down with little feedback to manager

-worker’s opinions ignored - motivation and morale issues

-worker alienation

-resentment among employees

-can hinder innovation

Paternalistic

The leader acts like a parent figure, prioritizing the welfare and security of employees while making most decisions independently

-similar to autocratic as leader has authority over employees

-different to autocratic as leader views employees as family and has great concern for employees

ADVANTAGES

EMPLOYEE:

-loyalty

-commitment

-sense of belonging

-sense of security

-pride

DISADVANTAGES

-favoritism

-employees may take advantage of the leader

-autocratic decisions (can lead to a lot of the autocratic disadvantages)

Democratic

Leaders involve team members in decision-making processes, rather than making all decisions alone. (employees give feedback but the head leader makes the final decision)

ADVANTAGES

-increased morale and motivation

-employees have role in decision-making (empowerment)

-can lead to improved decision making

-employees feel valued and part of a team

-innovation

DISADVANTAGES

-delay decision-making

-can cause conflict

-employees must be skilled

-leader still responsible if employee makes an error

Laissez-Faire

The leader gives an idea and wants employees to complete the task in their own way

ADVANTAGES

-high level of motivation and morale

-staff feels trusted and valued by employer

-employees feel they can contribute to success / ownership role

-fosters creativity

-innovation

DISADVANTAGES

-execution of strategies can be prolonged

-relies on goodwill and teamwork

-may encourage slack

-can have a loss of focus

-some employees could be demotivated by a lack of direction

Situational Leadership

Using the right style for the right situation (adapting leadership to situations at hand)

style will be influenced by

-the workforce / subordinates

-the decision

-the leader’s traits

-the culture / environment of the organization

ADVANTAGES

-adaptability

-when done well, very effective

DISADVANTAGES

-unpredictability can lead to confusion and demotivation

Scientific Thinking

-deliberate thinking processes

-uses evidence to make a decision

Intuitive Thinking

-Follow intuition

-Gut feelings

-Hunches