Management

The coordination and organization of business activities, people, and resources to achieve their aims

Functions of Management

Commanding: giving instructions to workers to achieve objectives Coordinating: communicating amongst departments to ensure optimal function as a whole Controlling: ensuring high quality performance and completion of tasks Planning: developing a formal action plan to achieve objective Organizing:

Leadership

Ability of an individual or group to influence and guide members of an organization. In other words, it is the process if social influence, which maximizes the efforts of others, towards the achievement of a goal

Scientific Thinking and Management

Management and decision making that is focused on objectivity, facts, and evidence

Intuitive Thinking and Management

Decision making that is based on personal beliefs, instincts, or gut feelings.

Autocratic Leadership

When managers keep control of information and decision making at the top of the organization Features: leader makes all decisions, gives little information to staff, supervises workers closely

Application of Autocratic Leadership

Good for: - Quick decision making- time of crisis or emergency - Military/police where danger is possible - Important decisions need to be communicated in difficult times - Managing many unskilled workers Not Good for: - Highly complex decisions where lots of input is needed - Leading talented, motivated, and creative employees - Junior leaders need to develop leadership skills

Paternalistic Leadership

Takes into account the interests of the workers when making decisions. They will consult employees on decisions but remain the sole decision maker. Main features: leader makes all the decisions, Minimal delegation, Considers employees “family' , Does not encourage creativity or initiative

Application of Paternalistic Leadership

Good for: - Family run businesses with a few employees - Can reduce staff turnover because of the “familial environment” Not good for: - Low staff motivation if loyal connection to leader is not established - Increasing dependency of employees on the leader, leading to more supervision required - Employee dissatisfaction if bad decisions are made

Democratic Leaderhsip

Based on decisions that are agreed upon by the majority of employees. It is also called participative leadership. This is usually done informally, but some businesses may hold votes to make major decisions. Main features: leaders delegate a lot, Participation is highly encouraged, Leader explains reasoning for decision making, Employees have more control over their jobs, Requires very good communication

Application of Democratic Leadership

Good for: - Low dependency on the leader is needed - High motivation and job satisfaction - Creative and skilled workforce NOT Good for: - Consultation with staff can be time consuming - Level of involvement - some issues might be too sensitive, e.g. job losses, sensitive information, development of new products etc.

Laissez-faire Leadership

Occurs when leaders allow employees to make all of their own decisions. First reason, the leader is not very skilled and allows workers to do what they want. Second reason, when the leader trusts employees and allows them complete freedom Main features: Good for highly creative or technical fields, Communication is usually between people on the same level, Organization/department can lack focus

Application of Laissez-faire Leadership

Good for: - Creative and skilled workforce that need no supervision - Leader is an equal in terms of experience and knowledge - Employees understand organizational objectives NOT Good for: - Motivation as workers can be confused and not know what to do - Organizations that need more structure and direction for leaders

Situational Leadership

Occurs when a leader adjusts their style to a particular task, situation, set of employees, etc. This means that they can act different ways when needed. The characteristics of the other leadership types are used when necessary. But can cause confusion for workers.