- Managers, Leadership and Decision-Making
Types of management styles
Autocratic
Democratic
Laissez-faire
Paternalistic
Decision Trees
Stakeholders
Minimal supervision and delegation
Influences on Decision-Making
Employees have full autonomy
Employees make their own decisions
Is often used in creative setting
Advertising Agencies
Startups
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Where a single person has complete control
Autocratic leaders make all decisions, often without consulting others
Autocratic leaders create highly structured work environments with clearly defined rules and processes
Involves multiple people in the decision-making process
Democratic leaders want all team members to be involved
Democratic leaders trust their teams to generate ideas and come up with solutions
Encourages innovation
Where a leader acts as a parent figure to their employees, treating them as part of an extended family
Making decisions based on what they believe is best for their employees, while still expecting loyalty and obedience in return
The leader serves as a role model for employees, and treats them with compassion and respect
Business Objectives
Ethics
External Environment
Resource Constraints
They help to ensure that all decisions align with the overall goals of the business
By providing a clear direction and measurable targets to achieve
Ethical decisions can help create a foundation for better decisions by establishing guidelines for behaviour
Ethical decision making involves evaluating the outcomes and consequences of each possible resolution to determine which option is most aligned with ethical values
Regulatory changes, inflation, and environmental factors can alter the cost of operations and production
Economic conditions and social trends can impact consumer purchasing power and preferences
If the business has resource constraints such as budget constraints then the business might not be able to pick certain strategies such as a marketing campaign and the business will have to find another way to promote the product
Benefits
Decision trees are easy to understand, even for people without an analytical background
Decision trees can help you consider the costs and benefits of different options
Decision trees can help you evaluate capital investment opportunities
Drawbacks
A small change in data can significantly alter the structure of a decision tree, which can lead to a different outcome
Probabilities used in decision trees are estimates that are prone to error
Decision trees may struggle with difficult and non-linear relationships
Internal Stakeholders
Management Team
Owners/Shareholders
Employees
External Stakeholders
Customers
Suppliers
Local Communiuty/Society
Creditors
Government
Businesses should manage stakeholders by communication and consultation