2.1 Managers, leadership, and decision-making
The difference between managers and leaders
Managers:
Definition: organises the workforce and control the functions of the business
– Tasked-focused
– Controls
– Solves problems
– Risk-averse
– Does the right thing
Leaders:
Definition: those who set the direction and strategy for the business
– Risk-taker
– Inspires
– Influences
– People-focused
– Motivates
– Does things right
– Inspires change
Different leadership styles
Autocratic
Definition: leader/manager makes all decisions
– top-down management, one way communication
– heavily monitored
Advantages:
– organised
– fast decision-making -> reacts to crises fast
– less confusion on decisions
Disadvantages:
– employees feel controlled, lowers motivation, no freedom
– limited view of the firm, no insight from subordinates
Democratic
Definition: leader/managers consults all employees and everyone gets a say
– employee involvement
– two way communication
Advantages:
– delegation -> employees feel more needed
– shared ideas
– improved morale —> potentially better employee motivation and
productivity
, Disadvantages:
– time-consuming and slow decision-making
– loss of power and control from management
– might have arguments as many ideas are taken into account
Paternalistic
Definition: treats employees like family
– final decision lies with top manager
– close supervision but with respect :)
– top-down management
Advantages:
– close relationships -> motivation to increase productivity
– more input of ideas
– employees consulted in decision-making -> employees feel wanted
– delegation
Disadvantages:
– harsh conversations may make employees upset
– too reliant on employers
Laissez-faire
Definition: hands-off approach
Advantages:
– good working environment
– delegations -> employees feel wanted
– high-skilled jobs
– shared ideas
– allows for initiative to demonstrate skills
– less supervision -> motivation
– more freedom
Disadvantages:
– lack of focus, coordination
– poor decision-making
– requires high-skilled labour to conduct this management style
The Tannenbaum and Schmidt continuum
Definition: model that shows where a manager’s approach lies on a continuum.
There are a range of different styles, ranging from a “tell” approach to one that
involves delegation
As the team’s freedom increases, the level of the managers’ authority
decreases.
The difference between managers and leaders
Managers:
Definition: organises the workforce and control the functions of the business
– Tasked-focused
– Controls
– Solves problems
– Risk-averse
– Does the right thing
Leaders:
Definition: those who set the direction and strategy for the business
– Risk-taker
– Inspires
– Influences
– People-focused
– Motivates
– Does things right
– Inspires change
Different leadership styles
Autocratic
Definition: leader/manager makes all decisions
– top-down management, one way communication
– heavily monitored
Advantages:
– organised
– fast decision-making -> reacts to crises fast
– less confusion on decisions
Disadvantages:
– employees feel controlled, lowers motivation, no freedom
– limited view of the firm, no insight from subordinates
Democratic
Definition: leader/managers consults all employees and everyone gets a say
– employee involvement
– two way communication
Advantages:
– delegation -> employees feel more needed
– shared ideas
– improved morale —> potentially better employee motivation and
productivity
, Disadvantages:
– time-consuming and slow decision-making
– loss of power and control from management
– might have arguments as many ideas are taken into account
Paternalistic
Definition: treats employees like family
– final decision lies with top manager
– close supervision but with respect :)
– top-down management
Advantages:
– close relationships -> motivation to increase productivity
– more input of ideas
– employees consulted in decision-making -> employees feel wanted
– delegation
Disadvantages:
– harsh conversations may make employees upset
– too reliant on employers
Laissez-faire
Definition: hands-off approach
Advantages:
– good working environment
– delegations -> employees feel wanted
– high-skilled jobs
– shared ideas
– allows for initiative to demonstrate skills
– less supervision -> motivation
– more freedom
Disadvantages:
– lack of focus, coordination
– poor decision-making
– requires high-skilled labour to conduct this management style
The Tannenbaum and Schmidt continuum
Definition: model that shows where a manager’s approach lies on a continuum.
There are a range of different styles, ranging from a “tell” approach to one that
involves delegation
As the team’s freedom increases, the level of the managers’ authority
decreases.
