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