management , leadership and decision making

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  • Created by: ManuSB
  • Created on: 07-03-24 17:19
what is Managers role
their role is to plan, organise, and coordinate people and resources to follow orders
(Managers have subordinate but leaders have followers)
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what is Leaders role
decide on a direction for the firm and inspire & motivate staff to achieve aims that are set
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The role of managers:
- Setting objectives (e.g. attendance, financial and growth)
- Analysing (e.g. analyse data for future decisions)
- Leading (e.g. human resources, staff attendance, duties, qualifications)
- Making decisions (e.g. rewards, expansion)
- Reviewing (e.g. app
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Influences on management and leadership styles:
- Company structure and the span of control
-Employees and their skills & abilities
-Nature of the tasks involved
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what is McGregor’s Theory X:
- This is an authoritarian approach to leadership, which is adopted by those leaders who believe that workers dislike work and therefore need to be controlled to improve their performance.
- They tell them what to do and supervise them doing it.
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Theory X managers assume that workers:
 Are lazy, dislike work and are motivated by money
 Need to be supervised and controlled or they will underperform
 Have no wish or ability to help make decisions or take on responsibility
 Aren’t interested in the needs of the organisation and lack a
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where can this type of management be used
- This can be useful in a crisis or where there are constantly changing workforces and workers need clear instructions and supervision
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what is McGregor’s Theory Y:
- This is an approach to leadership that assumes that workers have both initiative and self-control, which can be used to achieve the goals of a business.
-Consequently, the role of management is to maximise the commitment of the workers.
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Theory Y managers assume that workers:
 Have many different needs, enjoy work, and seek satisfaction from it
 Will organise themselves and take responsibility if they are trusted to do so
 Think that poor performance is due to boring and monotonous work and poor management
 Wish to, and sh
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Leadership styles: Authoritarian
 Autocratic leaders hold onto as much power and decision-making as possible
 Focus of power is with the manager
 Communication is top-down & one-way
 Formal systems of command & control
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what do authoritarian leaders use
 Use of rewards & penalties
 Very little delegation
 McGregor Theory X approach
 Most likely to be used when subordinates are unskilled, not trusted and their ideas are not valued
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Leadership styles: Democratic
 Focus of power is more with the group as a whole
 Leadership functions are shared within the group
 Employees have greater involvement in decision-making – but potentially this slows-down decision-making
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what do democratic leaders do
 Emphasis on delegation and consultation – but the leader still has the final say
-A potential trade-off between speed of decision-making and better motivation and morale
 Likely to be most effective when used with skilled, free-thinking and experienced
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Leadership styles: Paternalistic
 Leader decides what is best for employees
 Akin to a parent/child relationship – where the leader is seen as a “father-figure”
 Still little delegation
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paternalistic has positive effects on employees such as
 A softer form of authoritarian leadership, which often results in better employee motivation and
lower staff turnover
 Typical paternalistic leader explains the specific reason as to why he has taken certain actions
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Leadership styles:- Laissez-faire
 Laissez-faire means to “leave alone”
 Leader has little input into day-to-day decision-making
 Conscious decision to delegate power
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when is laissez - faire effective
 Effective when staff are ready and willing to take on responsibility, they are motivated, and can be
trusted to do their jobs
 Managers / employees have freedom to do what they think is best
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Management theories:
- Tannenbaum-Schmidt Continuum Theory
- The Blake Moulton Grid
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Tannenbaum-Schmidt Continuum Theory:
what does the continuum represent
The continuum represents a range of action related to the:
- Degree of authority used by the leader or manager
- Area of freedom available to non-managers
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Four main styles of leadership are identified in the Tannenbaum and Schmidt Continuum of Leadership:
tells , sells , consults , join
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what does tells represent
leader identifies problems, makes decision and announces to subordinates; expects implementation
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what does sells represent
leader still makes decision, but attempts to overcome resistance through discussion & persuasion
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what does consults represent
leader identifies problem and presents it to the group. Listens to advice and suggestions before
making a decision
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what does joins represent
leader defines the problem and passes on the solving & decision-making to the group (which
manager is part of)
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The Blake Mouton Grid:
the position on the Blake Mouton grid is
mapped in terms of
- Concern for people (High = 9 Low = 1): This is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task.
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how do they map task
- Concern for task (High = 9 Low = 1): This is the degree to which a leader emphasises concrete objectives,
organisational efficiency and high productivity when deciding how best to accomplish a task.
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The effectiveness of different styles of
Blake Mouton Grid
-The Blake Mouton grid provides a comprehensive analysis of leadership styles, catering to a broad audience due to its format.

- It outlines the motives and impacts of each style, aiding managers in assessing their effectiveness.
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disadvantages of Blake Mouton Grid
However, it lacks context appreciation, leading to the condemnation of certain styles that might be suitable in specific situations
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the effectiveness of Tannenbaum and Schmidt continuum
- Conversely, the Tannenbaum and Schmidt continuum focuses on delegation and decision-making freedom for subordinates, promoting team development.
-As team autonomy grows, manager authority diminishes, fostering positive delegation skill development for
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define intuition
the ability to understand something without the need for conscious reasoning
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define Scientific decision making:
a logical and research based approach to decision making
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Advantages of a scientific approach:
- Provides a clear sense of direction for all involved in the business
- Decisions are made and based on business logic
- It is flexible – at any stage in making a decision, it can be reviewed and changed if needed
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The scientific approach vs intuition depends upon:
- Speed of decisions
- Information available
- Size of business
- Predictability of situation
- Character of person or culture
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define decision trees
a tree like model of the various options available in a decision
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Characteristics of decision trees:
- They are good at choosing between several courses of action
- Provides a highly effective structure within which you can lay out options and investigate the possible outcomes of choosing these options
- It uses estimates and probabilities to calculate l
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define Expected Value
formula
the financial value of an outcome.
the estimated financial effect x its probability
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define Net Gain
formula
the value to be gained from taking a decision.
the expected value of each outcome – the costs associated with the decision.
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define a decision tree
a tree like model of the various options available in a decision
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Advantages of decision trees:
- Evidence to gain a source of finance
- Set out logically
- Easy to understand and results are tangible
- Likely costs considered as well as benefits
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Disadvantages of decision trees:
- Always probe to arrow
- Calculating probability can be rad
- Could be inaccurate or unreliable as only estimates
- Doesn’t necessarily reduce the amount of risk
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The influences on decision making:
- The business’ mission and objectives
- Ethics-this is the desire to act in a way that it morally correct ( these decisions are often not quantifiable and can attract negative publicity for the business)
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The risk involved on decision making:
 Non programmable = high risk – needs to be calculated and not taken on a hunch
 Programmable = low risk – can often be made using intuition or a hunch
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Stakeholder
the different people who are an interest in the business
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Stakeholder groups:
- Customers
- Employees
- Investors/banks
- Suppliers/distributors
- Shareholders
- Owners/managers
- Competitors
- The government
- Local communities
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Stakeholder mapping:
-Power = their part in decision making or how much they would negatively affect you

-Purpose = helps you when making decisions and prioritise stakeholders where there will be potential conflict
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Factors that affect stakeholder relationships:
- Quality of products made
- Information available
- How easy it is to communicate with them
- Their status
- Customer service
- Influence or power
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How to communicate with stakeholders:
- General meetings
- Letters
- Email and social networking
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Marketing Objectives
the process of identifying, anticipating (predicting), and satisfying customer needs profitably
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Marketing Objectives examples
 Ensure functional activities consistent with corporate objectives
 Provide a focus for marketing decision-making and effort
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types of marketing objectives
- Sales volume
- Sales value (revenue)
- Market growth (%)
- Market share (%)
- Brand loyalty/awareness
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External influences on marketing objectives and decisions:
-Economic environment
- Competitor actions
- Market dynamics
- Technological change
- Social and political change
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Economic environment
Key determinant of demand; e.g., recession can alter marketing objectives. Exchange rates impact international marketing objectives.
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Competitor actions
Marketing objectives must consider likely competitor responses. Increasing market share implies effective competition management
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Market dynamics
Influenced by market size, growth, and segmentation. Changes affect marketing objectives; e.g., slow growth may hinder revenue growth objectives.
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Technological change
Rapid tech changes affect consumer markets, shorten product life cycles, and foster innovation opportunities.
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Social and political change
Legislative changes create or hinder marketing opportunities. Societal structural and attitudinal shifts impact various markets
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Internal influences on marketing objectives and decisions
Corporate objectives
Finance
Human resources
Operational issues
Business culture
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Corporate objectives
Must align with marketing objectives to avoid conflict.
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Finance:
Business financial position impacts marketing scope and scale
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Human resources
Workforce quality and capacity affect marketing objectives, influencing customer service and productivity
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Operational issues
Operations impact cost competitiveness and quality, capacity management influences revenue objectives
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Business culture
Marketing-oriented culture focuses on meeting customer needs; production-oriented culture may lead to unrealistic marketing objectives.
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Market Research
the systematic and objective collation, analysis, and evaluation of information that is intended to
assist in the marketing process
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Primary Market Research (field)
involves the collection of first hand data that did not exist before and therefore it is
original data. It fills gaps that secondary research cannot
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Examples of primary research:
- Focus groups
- Interviews (online & in-person)
- Surveys & questionnaires
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Advantages of primary research:
- Directly focused on research objectives = fit for purpose
- Tends to be more up-to-date than secondary research
- Provides more detailed insights – particularly into customer views
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Disadvantages of primary research:
- Time-consuming and often costly to obtain
- Risk of survey bias – research samples may not be representative of the population
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Secondary Market Research (desk)
research that has already been undertaken by another organisation and
therefore already exists
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Sources of secondary research:
- Government publications
- Newspapers
- Magazines
- Company records
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Advantages of secondary research:
- Already gathered so may be quicker to collect
- May be gathered on a much larger scale than possible for the firm
- In some cases it can be very cheap or free to access
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Disadvantages of secondary research:
- Information may be outdated, therefore inaccurate
- The data may be biased and it is hard to know if the information was collected is accurate
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Market Mapping
a framework for analysing market positioning is a ‘market (positioning) map’. A market map
illustrates the range of positions that a product can take in a market based on two dimensions that are important to customers
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Advantages of positioning maps:
- Help spot gaps in the market
- Useful for analysing competitors – where are their products positioned?
- Encourages use of market research
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Disadvantages of positioning maps:
- Just because there is a gap in the market doesn’t mean there is demand for the product
- Not a guarantee of success
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Sampling
involves gathering data from respondents whose views or behaviours are representative of the target market as a whole
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Random sampling
member of target population has an equal chance of being chosen
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Quota/Stratified
based on obtaining a sample that reflects the types of consumers from whom the business
wished to gain information (e.g. gender, age)
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Advantages of sampling:
- Provides a good indication
- Helps avoid expensive errors
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Disadvantages of sampling:
- May be unrepresentative
- Bias
- Difficult to locate suitable correspondents
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Extrapolation
it is like an educated guess or a hypothesis
- When you make an extrapolation, you take facts and observations about a present or known situation and
use them to make a prediction about what might eventually happen
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Disadvantages of extrapolation:
- Less reliable if fluctuations occur (e.g. weather is unpredictable)
- Assumes past changes will continue
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Correlations
another method of sales forecasting that looks at the strength of a relationship between two variables
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define Positive correlations
Positive correlations means the two sets of data are connected in some way (e.g the closer it gets to
Christmas, the more Christmas trees that are sold)
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define Negative correlations
Negative correlations also means the two sets of data are related but as x increases, y decreases
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How technology enables more effective marketing decisions:
Analytics and customer insights
Dynamic pricing
Audience reach and segmentation
Customer relationship management (CRM)

Competitor analysis
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Card 2

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what is Leaders role

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decide on a direction for the firm and inspire & motivate staff to achieve aims that are set

Card 3

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The role of managers:

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Preview of the front of card 3

Card 4

Front

Influences on management and leadership styles:

Back

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Card 5

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what is McGregor’s Theory X:

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