An in-depth summary of the General Management chapter; summary made using the Consumo Business Studies Grade 12 Learner Book. These notes got me a distinction in business studies with an average of 87%!
• however, the manager maintains the final decision making authority.
• This style can work well when changes/new ideas need to be generated
• The advantage of this style is that it usually ensures buy in and commitment from people involved in the process.
However, a disadvantage could be that it may lead to slower decision making when the manager allows participation
from all.
Advantages:
• Create a positive work environment
• results in successful initiatives because everyone participates
• encourages creative thinking
• reduces disagreement, conflicts and office politics
• reduces staff turnover because employees are satisfied with where they work
Disadvantages:
• time consuming to consult all participants and will not work in emergency situations
• Some employees only pretend to participate because it is required
2. Autocratic:
• an autocratic leader seldom allows for input from subordinates and makes all decisions
• in certain circumstances this may be the best approach ; if, for example there's a crisis and quick decision making is
required to solve a problem or to implement a strategy that may not be popular with all staff members
• Also known as the authoritarian or boss centred style
• The manager is given the power to make decisions alone having total authority
• this leadership style includes close supervision when people perform certain tasks
• this style is ideal where instant decision making is needed, example in the military/war zone
• the disadvantage of an autocratic style is that employees often have a low morale as they feel undervalued by the
manager
Advantages:
• Constant supervision keeps employees under control and productive
• faster decision making
• improves control over operations
Disadvantages:
• high stress, anxiety, absenteeism levels amongst employees- lower staff morale
• employees eventually lose interest because they have no say in what they do at work
• the manager has an increased workload
• teams become too dependent on their leader
3. Laissez-faire:
• Also known as the free reign style
• a manager that follows this management style believes that he or she should not interfere in the process of carrying
out a task
• this manager will tell employees, what he or she is expecting from them , but will allow them to do the task without
interference
• this management style may yield excellent results, if there is a highly skilled workforce, motivated to perform
optimally
• it is a type of style in which managers are hands off and allow group members to make their own decisions
• these managers believe that employees excel when they are left alone to respond to their responsibilities and
obligations in their own ways
• this style will work when employees are knowledgeable and experienced in their jobs
Advantages:
• Authority is placed in the hands of team members
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, • Authority is placed in the hands of team members
• builds trust to allow employees to work alone
• employees can be held accountable for their work
• individual team members can develop into leaders
Disadvantages:
• could lead to conflict when some team members assume roles of leaders and dictate the work of others
• team members might misunderstand their objectives
• could lead to underperformance
• productivity might be low
4. Transactional:
• can be described as an approach of give and take, with the manager motivating employees to perform their tasks in
return for possible (salary, bonus or other benefits )
• The problem with this style is that as soon as employees regard their reward as insufficient they become
demotivated which often results in labour unrest
5. Transformational:
• the transformational leader is charismatic by nature
• he or she will motivate employees by helping them to understand the meaning of their work
• this type of leader places the emphasis on teamwork; He or she will make time to explain to the group why they
matter
• this builds confidence and trust between employees and management, consequently the individual and group
performance improves in terms of creativity problem solving and productivity
• people are often inspired and motivated to such a degree that they surpassed their own expectations. This happens
more often if the manager not only leads his team, but also empowers team members to achieve their full potential
6. The situational leadership style:
• it is a combination of all of the above leadership or managerial styles
• the manager will adapt the management style to whatever is required in this specific situation
• if the situation requires disciplinary action to be taken, he or she will adopt the autocratic style
• if the group of employees are autistic and do not respond well to too much structure, their manager may opt for a
laissez-faire approach by simply advising what needs to be achieved
• He thus avoids being too prescriptive about the method of achieving the goal
• a democratic, transactional or transformational style will be implemented where it will yield the best results
2) Motivational factors: monetary vs. non-monetary factors:
• To assess employee motivation, 2 broad categories of motivational factors, namely monetary and non-monetary
factors will be considered.
• Before examining the two categories, consider the advantages of having a motivated workforce, but also take into
account the opposite in terms of problems associated with third levels of motivation
Advantages of a motivated workforce:
• motivated employees are more likely to provide with customer service which will result in happy customers
• motivated employees are usually productive employees, which may lead to lower cost per unit and therefore more
opportunities for profit
• lower levels of absenteeism and or lower staff turnover
• a motivated workforce may be less likely to embark on industrial action
• happy workers will say positive things about the business and this may improve the image of the business
• motivated workers may have a positive impact on their other departments in terms of boosting their morale as well
1) Monetary factors to motivate employees:
• a salary increase may temporarily raise the motivation levels of some of the workers, yet think hard long it may take
a worker to get used to more money in his or her pocket. No sooner has the workers lifestyle improved, when he or
she may become demotivated if the prospect of a future increase is slim. Keep in mind that since the cost to
General Management Page 2
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