How Are Decisions Made? Unit 4.4

By the end of this unit you will 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 Styles There are 3 main leadership styles: Autocratic Style Democratic Style Laissez-faire Style

Autocratic Style This 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 Style A 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 Style This 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 Morale 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 Morale 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 Morale 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 Morale 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/Disadvantages Leadership StyleAdvantagesDisadvantages 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 environmentOrganisation can lack direction

Team-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 Involves: Controlling Leading Planning Budgeting Evaluating

Std Grade BM - U4.414 Leadership qualities Communication skills Organisational skills Motivational skills Planning/decision making skills Interpersonal skills Listening skills Budgeting skills Qualities/Characteristics of Effective Leadership/Management

Main Roles of a Manager LeadingGiving instructions, persuading and directing people PlanningLooking ahead to future goals of the organisation BudgetingFinancial planning – to minimise risks. Plan to expand/improve etc ControllingUse their authority to ensure business achieves their aims EvaluatingKeep 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