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Leadership theory and market segmentation (Tannenbaum and Schmidt…
Leadership theory and market segmentation
Blake and Moutons leadership grid
Impoverished Low people Low task- tends to be ineffective- leaders don't organise systems to get job done- no motivation- disorganised and dissatisfaction
Team High people High task- best style- high regard for people and task- people know what they are doing and why- trust, respect, satisfaction, motivation and high production
Authoritarian Low people High task -employees don't matter- task is priority- lots of strict rules and regulations- motivate by punishment
Middle of the road Middle people Middle task- tries to be a bit of everything- neither set of needs truly met- settle for average performance
Country club High people Low task- most concerned about needs of workers-of workers are happy get job done- relaxed working environment- product may suffer due to lack of direction and control
Tannenbaum and Schmidt
Autocratic- tell
Persuasive- sell
Ranges of autocratic to laissez faire
Consultative- consult
Leadership is on a continuum
Laissez faire- participate
Adair's action centred leadership
Group needs- communication, team building, motivation and discipline
Leader has to try and balance all 3 elements
Individual needs- caching, counselling, developing and motivating
There may be conflict between the elements
Task needs - setting objectives, planning tasks, allocate responsibility and set performance standards
McGregor- theory X and theory Y
Problems- cant use the stick as its against the law, degrees of motivation differ between individuals
Higher up an orgnaisation - Y
Theory Y- people are motivated
Lower down an organisation- X
Theory X- carrot and stick
Theory about management
Segmentation
Each segment consists of a group of consumers with similar requirements which can be distinguished from other segments
Will be distinct difference between good and services needed to meet requirements of each segment
Process of dividing potential customers into segments
Examples include- income, hobbies, politics, geography, profession, religion, gender and age
Socio economic groups
Group C1- skilled non manual 28% of total workforce. Example- secretaries
Group C2- skilled manual 21% of total workforce. Example- electricians
Group B- middle professional 20% of total workforce. Examples- teachers and solicitors
Group D- Part skilled 18% of total workforce. Example- cleaners
Group A- High professionals 3% of total workforce. Examples- doctors and judges
Group E- unskilled 10% of total workforce. Examples- unemployed, students and pensioners
Segmentation pros
Better opportunity for growth
Retains more cusotmers
More profit
Gain share of market segment
Better matching of customer needs
Segmentation cons
Difficult to achieve economies of scale
Survival difficult is sales decline
Potential sales growth may be limited