Pertemuan Ke - 5

Kewirausahaan
Leadership and Decision Making

Seto S.P. Rahardjo

 Leadership

1.Definition of Leadership: Leadership is the ability of an

individual to guide, inspire, and direct others toward
achieving specific goals or a shared vision. It involves the
capacity to provide direction and motivation to people within
an organization.
2.Leadership Styles: There are various leadership styles,
including authoritarian, democratic, transformational, and
more. Each leadership style has its characteristics and is
suited to different situations and organizational cultures.
3.Key Leadership Characteristics: Effective leaders typically
possess trustworthiness, integrity, empathy, good
communication skills, the ability to take calculated risks, and
decision-making competence.
4.Leadership Development: Leadership skills can be
developed through training, experiences, and continuous
learning. Leadership development programs and initiatives
can help individuals enhance their leadership abilities.
 Decision-making
1.Decision-Making Process: Decision-making is
choosing various courses of action or alternatives to
address a problem or achieve a specific goal. It
involves gathering information, evaluating options,
and selecting the best action.
2.Factors in Decision Making: Several factors
influence decision-making, including the availability of
information, the desired outcomes or goals, individual
or organizational values, risk considerations, social
impact, and more.
3.Decision-Making Methods: There are various
methods and tools for decision-making, such as SWOT
analysis, cost-benefit analysis, risk analysis, and
others. The choice of method depends on the
complexity of the decision and the available
resources.
4.Quality Decision Making: A good decision is made
after carefully considering relevant information,
potential risks, and their impact on the desired goals.
 Relationship between Leadership and Decision-making

Leadership and decision-making are

closely intertwined because leaders
are often responsible for making
important decisions that impact
their organizations or teams. The
ability to make wise decisions is a
critical component of effective
leadership. Furthermore, good
leaders can inspire and motivate
others to participate in decision-
making and commit to the chosen
action. Effective leadership and
sound decision-making together
contribute to the success and
growth of organizations.
 Style of Leadership
1. Autocratic Leadership: In an
autocratic leadership style, leaders
make decisions unilaterally without
consulting their team members. They
have complete control and authority
over decision-making and expect strict
adherence to their directives. This
style can be efficient in emergencies
or when quick decisions are required
but may stifle creativity and morale in
the long run.
2. Transformational Leadership:
Transformational leaders inspire and
motivate team members to exceed
expectations. They often have a clear
vision and can articulate it effectively,
encouraging others to follow. These
leaders are known for fostering a
sense of purpose and passion among
their team members.
3. Democratic Leadership: Democratic
leaders involve their team members in
decision-making processes. They seek
the group’s input, opinions, and ideas
and then decide collectively or through
a voting system. This style promotes
collaboration, innovation, and a sense
of ownership among team members.
 Style of Leadership
4. Transactional Leadership: Transactional 5. Laissez-Faire Leadership: Laissez-faire leaders take a hands-off approach,
leaders focus on setting clear expectations allowing team members a high degree of autonomy in decision-making and
and establishing a system of rewards and task execution. They provide minimal guidance and intervention, trusting their
punishments to motivate and manage their team's competence. While this style can foster creativity and independence, it
teams. They often use incentives, such as may lead to a lack of direction and accountability if not managed properly.
bonuses or promotions, to encourage
performance and enforce rules. This style
effectively achieves short-term goals and
maintains order but may not inspire long-
term commitment.

6. Servant Leadership: Servant leaders prioritize the needs and well-being

of their team members above their own. They focus on serving and
supporting their team, helping them grow and succeed. This approach
often results in solid loyalty and a positive work environment.
 Style of Leadership
8. Situational Leadership: This style
adapts leadership behavior based
on the specific situation and the
development level of team
members. Leaders assess the needs
of their team and adjust their
leadership style accordingly, ranging
from more directive to more
supportive approaches.

7. Charismatic Leadership:
Charismatic leaders have a magnetic
and persuasive personality that 9. Coaching Leadership: Coaching
draws followers to them. They are leaders focus on developing the skills
often effective at inspiring and and abilities of their team members
motivating others through their through guidance, feedback, and
charm and enthusiasm. However, mentorship. They help individuals
charisma alone may not guarantee reach their full potential and achieve
effective leadership, and it can be their goals.
associated with risks if not coupled
with sound decision-making.
 Factors in decision-making
Internal factors
1. Individual Values and Beliefs:
Personal values, beliefs, and
ethical principles play a significant
role in decision-making. What an
individual considers right or wrong
can influence the choices they
make.
2. Emotions: Emotions, such as fear,
joy, anger, and sadness, can impact
decision-making. Emotional states can
lead to impulsive decisions or cloud
rational judgment.
3. Cognitive Biases: Cognitive biases are
systematic patterns of deviation from
rationality in judgment, often leading to
perceptual distortion, inaccurate judgment,
illogical interpretation, or what is broadly
called irrationality. Examples include
confirmation bias, overconfidence, and
anchoring.
 Factors in decision-making
6. Knowledge and Information: The amount and quality
Internal factors of information available to a decision-maker are critical.
4. Goals and Objectives: The Decisions made with complete or accurate information
specific goals an individual or may lead to suboptimal outcomes.
organization aims to achieve
can guide decision-making.
Decisions are often made to
advance toward desired
outcomes.

5. Past Experiences:
Previous experiences and 7. Risk Tolerance: Individuals and organizations vary in their
the outcomes of past willingness to take risks. Some may prefer conservative
decisions can influence decisions to minimize risk, while others are more inclined
current decision-making. to take calculated risks for potentially greater rewards.
Positive experiences may
lead to confidence, while
negative experiences can
lead to caution.
 Factors in decision-making 3. Cultural and Social Factors: Cultural norms, societal
values, and social expectations can influence decision-
External factors making. What is considered acceptable or taboo can
impact choices.
1.Environmental Factors: The
external environment,
including economic
conditions, market trends,
and competitive forces, can
significantly impact decision-
making, especially for
businesses.
2. Stakeholder Influence: Stakeholders, such as customers,
employees, investors, and regulators, may influence decisions.
Their interests and concerns can shape the choices made by
organizations and leaders.
4. Legal and Ethical Considerations: Laws
and regulations, as well as ethical
considerations, can place constraints on
decision-making. Violating legal or ethical
standards can have serious consequences.
 Factors in decision-making
External factors

5. Resource Constraints: The availability of resources,

including time, money, and personnel, can limit the options
available for decision-making. Decisions often need to be
made within resource constraints.
6. Technological Advancements: Technological
advancements can create new opportunities and challenges.
Decisions related to adopting new technologies or adapting
to technological changes can be critical.
7. Political Factors: In some cases, political considerations
and government policies can impact decision-making,
particularly for businesses operating in regulated industries.
8. Global Factors: Globalization has expanded the reach of
businesses and organizations, making decisions increasingly
interconnected with international factors, such as trade,
geopolitics, and global markets.