how are decisions made? unit 4.4. by the end of this unit you will understand … what are the...
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How Are Decisions How Are Decisions Made?Made?
Unit 4.4
By the end of this unit you will By the end of this unit you will understand …understand …
What are the different styles of leadership?
What impact does the management style have on staff morale and motivation?
What is effective management:◦Identify the qualities/characteristics of a good
manager◦Identify the main roles of a manager?
Different Management StylesDifferent Management Styles
There are 3 main leadership styles:
• Autocratic Style• Democratic Style• Laissez-faire Style
Autocratic StyleAutocratic StyleThis occurs when managers
tell people what to do and expect their orders to be followed.
There is little or no consultation between management and workers.
Decision-making is tightly controlled.
Democratic StyleDemocratic StyleA democratic management
style means that managers do consult others before making decisions.
This could involve a senior manager discussing an issue with junior managers.
It could also involve managers asking other workers for their opinions before reaching decisions.
Laissez-faire StyleLaissez-faire StyleThis involves the minimum
of managerial direction.It probably works best in
workplaces where creativity would be stifled by strict managerial control (e.g. designers)
However, it does not mean that people can do what they like when they like!
Impact of Management Styles on Impact of Management Styles on Morale and MotivationMorale and Motivation
Autocratic Style• Workers in some businesses might feel
frustrated and unable to use their initiative
• Likely to lead to low morale and little motivation
• However, in some organisations (such as the Army) this style of leadership is felt to be vital
Impact of Management Styles on Impact of Management Styles on Morale and MotivationMorale and Motivation
Democratic Style• If carried out properly, this management
style should make workers feel part of the decision making
• They should feel their ideas are important and acknowledged
• Therefore, morale and motivation should be high
Impact of Management Styles on Impact of Management Styles on Morale and MotivationMorale and Motivation
Democratic Style• However, if workers feel managers are
approaching them for ideas because they have none of their own – it will lead to lack of respect and give a perception of poor leadership
• Therefore, this will have a negative effect on morale and motivation
Impact of Management Styles on Impact of Management Styles on Morale and MotivationMorale and Motivation
Laissez-faire Style• This relaxed management style will not
work in all industries• Most workers need clear leadership and
guidance• This style may work well in creative
industries e.g. advertising and film making
Advantages/DisadvantagesAdvantages/DisadvantagesLeadership Style Advantages Disadvantages
Autocratic Quick decision making
Staff not consulted so may feel demotivated and frustrated leading to low morale
Democratic Staff feel involved so more likely to go along with decisions made
Can be time consuming to consult and get feedback
Laissez faire Relaxed environment Organisation can lack direction
Team-WorkingTeam-Working
Many modern organisations encourage employees to work together in teams
Team spirit/working together can encourage and motivate staff
Better ideas Shared responsibility can
improve staff morale
Effective Management Effective Management Involves:Involves:
• Controlling• Leading• Planning• Budgeting• Evaluating
Std Grade BM - U4.4 14
Leadership qualities
Communication skills
Organisational skills
Motivational skills
Planning/decision making skills
Interpersonal skills
Listening skills
Budgeting skills
Qualities/Characteristics of Qualities/Characteristics of Effective Leadership/ManagementEffective Leadership/Management
Main Roles of a ManagerMain Roles of a ManagerLeading Giving instructions, persuading and directing
people
Planning Looking ahead to future goals of the organisation
Budgeting Financial planning – to minimise risks. Plan to expand/improve etc
Controlling Use their authority to ensure business achieves their aims
Evaluating Keep track of business activity and staff performance to compare with targets and check that business is on track. Also helps to identify problems which may get worse