Principles of Leadership & Management Workbook: Decision Making

This coursework workbook focuses on the principles of leadership and management, designed for a Level 3 Diploma in Business Administration. The workbook covers key learning outcomes including understanding effective decision-making, leadership styles and models, the role and functions of management, and performance measurement. It includes a detailed glossary of terms and a case study on Manuel's restaurant, which is used to illustrate practical applications of decision-making processes. The assignment requires students to analyze the importance of defining objectives, scope, and success criteria, as well as assessing the potential impact of decision-making. The workbook is structured to guide students through various aspects of leadership, management, and decision-making, providing a comprehensive overview of these critical business concepts.

COURSE WORKBOOK FOR
Principles of Leadership & Management
LEVEL3 DIPLOMA IN BUSINESS ADMINISTRATION
LEARNING OUTCOMES
1. Understand the principles of effective decision-making
2. Understand leadership styles and models
3. Understand the role, functions and processes of management
4. Understand performance measurement

Page 2
HOW TO USE THIS WORKBOOK?
 Read each question carefully and highlight key words such as analyse, describe,
discuss, explain, identify, justify, and recommend with reasons and state. Please refer to
the ‘Glossary of Key Words’ below
 There is not always a single correct answer for a question and marks will be awarded
for all valid responses
 Penalties for contravention of the rules relating to plagiarism and collaboration -
Please refer to college’s plagiarism policy provided in the student handbook
CONTENTS
Decision Making
Page 3 - 5
Leadership Styles
Motivation Theories
Roles & Functions of Management
Management & Leadership Theories
Performance Management
Management Information Systems
LEARNER DECLARATION
FULL NAME
STUDENT
ID
BATC
H
I declare that this
project is my own
work and that I have
correctly
acknowledged the
work of others.
SIGNATUR DATE

Page 2
HOW TO USE THIS WORKBOOK?
E
Meaning Example
Analyse
Separate information into
components and identify their
characteristics.
Discuss the pros and cons
(advantages and disadvantages) of
a topic or argument and make
reasoned comment.
A chair is used for sitting on. It can be used for
standing on to reach something but its most common
purpose is to be sat on. It normally comprises a seat; a
backrest and is supported by legs.
Most chairs have four legs spaced to give stability to
the chair. Chairs can have three legs, again it is the
positioning of the legs under the seat which provides
the stability and makes a chair fit for purpose.
Chairs can be made in many different styles and use a
variety of materials. The design and material choice
are reflected in the cost of the chair. Traditionally
chairs were made of wood however there is now a
vast array of materials used in chair production such
as metal, plastic, rubber and fabric. The material used
will affect the weight of the chair. Chairs are often
used alongside a table, for example whilst eating or
working. They are used to support body weight in a
sitting position. The height of a chair is very
important as if it was too high or too low it would not
function at a table and may be uncomfortable.
Evaluate
Make a qualitative judgement
considering different factors and
using available knowledge /
experience / evidence
The chair I am considering has several strengths. It is
made from a material which is hardwearing and with
maintenance and care this chair could last me a
lifetime. If the chair got marked, chipped or damaged
it could be remedied by me, at home. This would
avoid having to find a specialist and having to travel
to or haul the chair a great distance, at great cost.
Another strength the chair has is its design. Because
the back rest is moulded to an adult spine, it is
possible to remain sitting on it for hours without
feeling any discomfort.
The main weakness of the chair is its colour. It is
made from a light wood and as a long-term
investment this may not compliment the shades and
style of the room, as it develops. Also, there is some
intricate design on the back rest which could make
cleaning difficult. This could result in a build-up of
dust which would look unsightly.
Explain
To give account of the purposes or
A chair is used for sitting on. It normally comprises a
seat; a backrest and is supported by legs. The legs are
positioned in such a way to balance the chair, so that

Page 2
HOW TO USE THIS WORKBOOK?
reasons when it is sat upon it does not collapse or become
unstable. Chairs can be made in many different styles
and use a variety of materials. The design and
material choice are reflected in the cost of the chair.
Chairs are often used alongside a table, to support
body weight at a convenient height whilst doing
something at the table. Chairs can be produced in
different sizes to make them suitable for individuals
e.g. a child.

Page 3
GLOSSARY OF TERMS
Decision making process
We make decisions all and every day. What to wear, what we have to do at work, what do to
with the children when we pick them up from school and so on and so on… let's face it - our
lives are full of decisions. Some we can make on autopilot as they are simply not that
involved, while others take careful planning and thought processes to ensure we make the
best decision possible. Usually this is because the decision that needs to be made is one that
has significant impact if we make the incorrect one.
1. Defining the Problem 3. Develop Potential Alternatives
The first step is to define the problem, or we
could say, 'What are we trying to fix?' For
our purposes, we will use someone who
wants to purchase their first home, a pretty
big step in a person's life and something
that we have to give a lot of thought to in
order to make sure we pick the right house.
Just wanting to purchase your first home is
not really a problem; thus, the problem
needs to be defined more. So, in this case,
the problem is we are tired of renting an
apartment and want a place of our own so
we can get some equity and not just pay
rent each month and get nothing from it.
Here you will be looking at what
alternatives are available to help you get to
your goal. Since we know our limiting
factors, we can now develop alternatives to
help us address those factors and help us
with our problem. For example, we could
review the following potential alternatives:
 Stay where you are and not buy a
home (though that's really not solving
the problem)
 If the house you really like is more
money than you can afford, you can cut
back on other expenses or get a
roommate to help pay the monthly
mortgage.
 You could purchase a bike and ride
to the bus stop if it's not close enough
2. Identifying Limiting Factors 4. Analyze the Alternatives
Next, we have to identify limiting factors.
For this step, we need to review all the
factors that could stop us from actually
solving the problem - basically, things that
would get in our way to stop us from fixing
the issue that we want to fix. For our
purposes, we will assume you have the
money to put down and are ready to become
a homeowner. Now, let's say we have the
following limiting factors:
 You can only afford £600.00 a
month for a mortgage payment
 You do not own a car and have to
take the bus to work, so the house needs
to be near a bus station
You will take each alternative you have and
try to determine, in order, what is the most
feasible to the least feasible.
 You might not be able to find a
roommate you can actually live with
 You might realize that two
bedrooms is simply not going to work
for the space you need
 Cutting back on expenses is
something you could do and work with
while you find ways to solve the other
issues as time goes by

Page 3
GLOSSARY OF TERMS
 You need three bedrooms and two
bathrooms
5. Implement the Alternative

Page 2
HOW TO USE THIS WORKBOOK?
Thus, if you start looking for homes and realize the one you want that fits all your criteria
except for monthly mortgage is higher than you would like, your best alternative is to cut
back on your expenses to afford the home.

Page 4
DECISION MAKING
Read the following case study and answer the questions in the next page
Case Study
Manuel wants to open a restaurant. The first step is to define the goal. He realises that he
needs a physical location for his kitchen and a dining room for his customers. Therefore,
Manuel must decide on a way to acquire a space for his restaurant.
Now that Manuel has defined the goal, he needs to collect the relevant information. This is
to identify his options. He needs to collect information to make an informed decision.
Manuel will turn to research to find the information. It's also important that he knows what
type of information is relevant. He'll need information on restaurant spaces and real estate
options, such as purchasing and leasing. He'll also want information on his target market.
Once Manuel has collected all the relevant information, he can determine his alternatives.
Manuel could rent a building or purchase a building for his restaurant. He also must
consider different locations. After Manuel has identified all his options, he needs to analyse
them. He will do this considering his overall goals, the feasibility of each alternative and
the costs and benefits of each alternative. For example, Manuel may want to open a trendy
fine dining establishment catering to young, urban professionals
He also must consider feasibility. This means he need to weigh positives and negatives of
each options. Manuel may not have the funds available to buy or lease space in the
trendiest part of the city. One of the most important things he will do is weigh the relative
costs and benefits of each alternative. For example, there will be advantages and
disadvantages in owning a building compared to leasing space. The costs involved in
owning may well outweigh the benefits for a new restaurant. He’ll pick the most feasible
alternative that meets his goal and has the most benefits for the least cost. For example, he
may opt to lease a building in an old but trendy area of city that is undergoing an urban
renewal with up-and-coming young professionals as its occupants. This alternative reaches
his target market better than suburban locations and is cheaper than the rent in the city.
The next step for Manuel is simply to implement his decision. He'll find a location in his
target area that's for lease and attempt to negotiate lease terms beneficial for him. After
leasing the property, Manuel can start getting it ready for his new restaurant.
The final step in Manuel's decision-making process is to review and assess his decision.
Manuel will review his decision. He will assess his choice against his goals to figure out
whether the decision was feasible and determine the costs and benefits arising out of the
decision. For example, Manuel will assess whether the revenue generated by his restaurant
can support the rent and whether the location brings in his target market.After his
assessment, Manuel will adjust his decision as needed. For example, if he determines that
his rent is too high given his revenue, he may opt to seek a different location after his
current lease expires or raise his menu prices.

Page 2
HOW TO USE THIS WORKBOOK?
Explain the importance of Manuel defining the objectives, scope and success
criteria of the decisions to be taken? 1.1
For all the managers such as Manuel it is very important to define the objective, scope and
success criteria of decisions manually as it can help the staff members to understand all their
job responsibilities properly. Apart from this it will be beneficial for motivating the
employees because if this type of important information will be shared with them then it will
help to increase their work quality.
Assess the importance of Manuel analysing the potential impact of decision
making? 1.2
The decisions which are taken by Manuel were highly effective and left positive impact
upon the business idea which is formulated for the attainment of goals. The potential impacts
which will left by the decision making are higher growth of the revenues and increment in
the sales of restaurant.
Explain the importance of Manuel obtaining sufficient valid information to enable
effective decision-making? 1.3
Manuel used effective and sufficient information for the purpose of effective decision
making. It was very important because it has resulted in development of business and
attainment of all the goals which are formed by Manuel for the restaurant.
Explain the importance of Manuel aligning decisions with his restaurant’s
objectives, values and policies? 1.4
In order to reach the long term business goals it is very important for the owner or manager
of an organization to align all the decisions with objectives, values and policies as it will be
beneficial to form strategies for the attainment of long term business goals successfully.
Manuel has also done the same which has resulted in the development of restaurant.
Explain how can Manuel validate information used in the decision-making
process? 1.5
For the purpose of validating the information which is used by Manuel in decision making
he would have conducted appropriate tests and used research to analyze that the information
recorded for business is appropriate or not.
Explain how can Manuel address issues that hamper the achievement of targets and
quality standards? 1.6

Page 5
DECISION MAKING
For the purpose of address the issues that hamper the achievement of targets and quality
standards Manuel can find the roots which are causing the problems. Afterwards effective
decisions for the resolution of the challenges could be taken properly.

Page 2
HOW TO USE THIS WORKBOOK?
Leadership styles & its fit in the workplace 2.2
As a leader, it's important that you find and develop a leadership style that works best for the
type of business environment that you are in. Let's take an in-depth look at several styles of
leadership including authoritative, participative, laissez-faire, situational, and bureaucratic;
and what type of workplace environment is the best fit for each. Can you recall a time that
you may have witnessed a drill sergeant barking orders to members of the military? It was
clearly evident that the drill sergeant was in complete control and in a position of authority.
This is an example of the authoritative leadership style, which can be defined as a style
where a leader has total control over subordinates (those who report to the leader) and is the
sole authority figure that makes decisions with minimal or no input from others. When
people participate in something, it means that they are involved with others or with a specific
thing. The participative leadership style is when a leader involves subordinates and others
when making important decisions for a business, but the leader has the final say in the
decision. This style of leadership centers around the fact that although others may participate
and give their opinions, the final decision still lies with the leader. The leader acts as a
facilitator and supplies any materials or resources the subordinates may need to complete the
task. The characteristics of the laissez-faire leadership style include having the ability to trust
those around you, believing in a hands-off approach, and having little to no anxiety issues.
Below are three scenarios which demonstrates various leadership styles. You must identify
the leadership style used in each situation and evaluate the suitability and impact of different
leadership styles in different contexts
Scenarios Leadership style, its suitability & impact
Imagine that you are employed as the
manager of a software company. You and
your team have been tasked with designing
a program to help children learn to read and
write. You have decided that each employee
has the right to create their own programs,
as long as they meet the requirements of
educating children. You have provided no
other rules or regulations, and the team does
not have to consult you at all unless they
have questions
The leadership style in this scenario is
Lassie Faire and it is suitable for it because
with the help of it all the employees will
work productively and try to accomplish the
goals which are related to their jobs. It will
leave impact upon their work as they will
not have any superior to guide so possibility
of errors is also high.
A forklift has its forks raised in the air to
put some material in the racks. An
employee darts under the forks (safety
violation) so he can get back to his
workstation in time. As the supervisor you
tell him very sternly not to ever do that
again and notes it in his log.
The leadership in this case is autocratic
which is suitable to it because it will reduce
the possibility of negative events in future
as the employees are not allowed to work
according to them. It may leave impact
upon motivational level of employees as
they have to follow the command of
leaders.
You lead a team of research scientist
working on new ways to use plastic.
The leadership style in this scenario is
democratic because the team members are

Page 2
HOW TO USE THIS WORKBOOK?
Although the team discusses the merits of
each ideal and project, you retains the final
decision making authority.
allowed to share their ideas and opinion
with the leaders. It is highly suitable
because it helps to keep the employees
motivated and inspired to work
productively. It may leave impact upon
decision making because it will take time to
listen views of all the team mates and then
formulate the decision.