2 Managers, Leadership and decision making

Question 1

What do managers do (MARLS)?

Answer 1

Make decisions
Analyse
Review
Lead
Set objectives

Question 2

What are the types of managment and leadership styles (BALDP)?

Answer 2

Paternalistic
Laissez-faire
Autocratic
Democratic
Bureaucratic

Question 3

What is Autocratic?

Answer 3

Leader makes decisions without consulting others

Question 4

What is Democratic?

Answer 4

Leader makes the final decision but includes others in the process

Question 5

What is Laissez-faire?

Answer 5

Leader allows team members freedom in their work and in meeting deadlines

Question 6

What is Paternalistic?

Answer 6

Leader consults and tries to make decisions in the interest of all

Question 7

What is Bureaucratic?

Answer 7

Leader does everything exactly by the rules

Question 8

Three points of the Tannenbaum Schmidt continuum?

Answer 8

Illustrates the range of leadership styles, from telling to delegating.
Classifies the style according to how much a leader tells or listens to their staff.
Shows that as workers freedom in decision making increases, so the managers authoristy decreases.

Question 9

What correlation does the Tannenbaum Schmidt continuum have?

Answer 9

As democratic leader increases from autocratic leader the use of authority by leader decreases and the ares of freedom for subordinates increases.

Question 10

What six stages are there in the Tannenbaum Schmidt continuum are there?

Answer 10

Tells
Sells
Suggests
Consults
Shares
Delegates

Question 11

What is tells on the Tannenbaum Schmidt continuum?

Answer 11

Manager makes decisions and announces

Question 12

What is sells on the Tannenbaum Schmidt continuum?

Answer 12

Manager “sells” decisions

Question 13

What is suggests on the Tannenbaum Schmidt continuum?

Answer 13

Manager presents ideas and invites suggestions

Question 14

What is consults on the Tannenbaum Schmidt continuum?

Answer 14

Manager presents tentative decision subject to change

Question 15

What is shares on the Tannenbaum Schmidt continuum?

Answer 15

Manager defines limits and asks the group to make a decision

Question 16

What is delegates on the Tannenbaum Schmidt continuum?

Answer 16

Manager permits subordinates to function within the limits defined by superior

Question 17

What is on each axis of the Blake and Mouton leadership grid?

Answer 17

y axis = concern for people
x axis = concern for production

Question 18

What is country club managment?

Answer 18

Thoughtful attention to the needs of people for satisfying relationships leads to a comfortable, friendly organisation atmosphere and work tempo

Question 19

What is team management?

Answer 19

Work accomplishment is from commited people; interdependence theough a “common stake” in organisation purpose leads to relationships of trust and respect

Question 20

What is middle-of-the-road managment?

Answer 20

Adequate organisation performance is possible through balancing the necessity to get out the work with maintaining morale of people at a satisfactory level

Question 21

What is impoverished managment?

Answer 21

Extertion of minimum effort to get required qork done is appropriate to sustain organisation membership

Question 22

What is authority-compliance managment?

Answer 22

Efficiency in operations results from aranging conditions of work in such a way that human elements interfere to a minumum degree

Question 23

What are the five leadership styles that the Blake and Moutons leadership result in? And what is the short meaning of them?

Answer 23

country club = emphasis is on people, with little concern for task
authority-complience = emphasis is on task, with little concern for people
impoverished = little concern for either task or people
middle of the road = focus is on both task and people
team leadership = high focus on both task and people

Question 24

What five things may effect the effectiveness and influences of the style of leadership?

Answer 24

the individual
the nature of the industry
the business culture
circumstances
the economic climate

Question 25

(Effectiveness of different styles of leadership and management) What is the effectiveness and influences of the style of leaderhsip affected by?

Answer 25

The indevidual The nature of the industry The business culture Circumstances The economic climate

Question 26

(2.2 management decision making). In order to reduce risk a business may adopt what approach?

Answer 26

Scientific decision making

Question 27

(2.2 management decision making). What is scientific decision making based on?

Answer 27

The collection of facts Analysis using analytical tools such as decision trees

Question 28

(2.2 management decision making). What are intuition decisions based on?

Answer 28

Made by gut feeling Not based on evidence or rational processes

Question 29

(2.2 management decision making). What might managers also consider opportunity cost in decison making as?

Answer 29

Recources, particularly finance, are limited They will not be able to undertake everything they would like to A choice has to be made

Question 30

(2.2 management decision making). What is opportunity cost?

Answer 30

The next best alternitive given up when a decision is made.

Question 31

(2.2 management decision making). What is a decision tree?

Answer 31

Tree-like diagrams showing various options their probablities and financial outcomes.

Question 32

(2.2 management decision making). What is the use and values of decision trees?

Answer 32

Help when decising between different options. They create a visual representation of the various: risks rewards outcomes Thye help reduce risk and help overcome uncertainty

Question 33

(2.2 management decision making). What are the key features of drawing and evaluating a decision tree?

Answer 33

Every decision tree will begin with a square - represents the decision to be made From the square qill come at least two lines- represents possible outcomes There will often be a third line - so nothing option

Question 34

(2.2 management decision making). Taking each line in turn it is necessary to decide weather it is a result, is uncertain or weather another decision has to be made. What symbols do you use?

Answer 34

Result- nothing Uncertain- circle Decision- square

Question 35

(2.2 management decision making). From each circle lines will have to be drawn showing the possible outcomes. In order to evaluate the decision tree all lines needs to be fully lablled. This involves indicating what information on the decision tree?

Answer 35

Cost of each option Potential outcomes Probabilities

Question 36

(2.2 management decision making). How do you calculate the expected values?

Answer 36

For each circle the outcomes are multiplied with the probabilities and added together The cost of that option is then subtracted The options can then be compared to see which provides the highest return

Question 37

(2.2 management decision making). Whata re decision tree limitations?

Answer 37

Managers may be influenced by their own bias toward a particular option Probabilities while based in past experience are likely to be just guesstimates

Question 38

(2.2 management decision making). Whata re some influences on decision making?

Answer 38

Mission and onjectives Recource constraints External environment Competition Ethics

Question 39

(2.3 the role and importance of stakeholders) The various stakeholders and their interests are what?

Answer 39

Employees- job security, good working conditions, pay Customers- good customerservice, value for money Shareholders- capitol growth, dividends Suppliers- regular orders, on time payment Local communities- avoidance of pollution and congestion, employment Government- employment, payment of taxes

Question 40

(2.3 the role and importance of stakeholders). Decisions taken by a business will have impacts on what?

Answer 40

Its various stakeholders

Question 41

(2.3 the role and importance of stakeholders). Stakeholder mapping is a technique for determining what?

Answer 41

The importance of indevidual stakeholders.

Question 42

(2.3 the role and importance of stakeholders) Who drew up a matrix where stakeholers where categorised?

Answer 42

Mendelow

Question 43

(2.3 the role and importance of stakeholders). What did Mendelow categorise the stakeholders into?

Answer 43

Level of influence and power Level of interest

Question 44

(2.3 the role and importance of stakeholders).What are the four sub categories of Mendelows matrix (after level of influence/power and level of interest)?

Answer 44

Meets their needs Key player least important Show consideration

Question 45

(2.3 the role and importance of stakeholders). In Mendelow's matrix what are three points in the subcetegory 'meets their needs'?

Answer 45

Engage and consult on interest area Try to increase level of interest Aim to move to right hand box

Question 46

(2.3 the role and importance of stakeholders). In Mendelow's matrix what are three points in the subcetegory 'key planner'?

Answer 46

Focus efforts on this group Involve in governance/decision making bodies Engage and consult regularly

Question 47

(2.3 the role and importance of stakeholders). In Mendelow's matrix what are two points in the subcetegory 'least important'?

Answer 47

Inform via general communications eg news letters, website, mail shots Aim to move to right hand box

Question 48

(2.3 the role and importance of stakeholders). In Mendelow's matrix what are three points in the subcetegory 'show consideration'?

Answer 48

Make use of interest through involvement in low risk areas Keep informed and consult on interest area Potential supporter/goodwill ambassador

Question 49

(2.3 the role and importance of stakeholders). What is managment of stakeholders determined through the matrix according to?

Answer 49

Weather they are A key player Their needs must be met Concideration needs to be shown They are of least importance

Question 50

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: what are the six decisions?

Answer 50

Relocate overseas Introduce new technology Expand production Increase price Cut costs New marlets/products

Question 51

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the overlap to relocate overseas?

Answer 51

Share holders : potential for lower costs and increased profit Management: achieve objectives in terms of costs and profit

Question 52

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the overlap to indroducing new etchnology?

Answer 52

Shareholders and management: lower costs and potential profit Consumer: may result in better quality and reliability

Question 53

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the overlap to expanding production?

Answer 53

Shareholders: higher sales and profit Employees: job opportunities Customers: greater availability Suppliers: more orders Government: more tax Community: greater production

Question 54

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the overlap to increasing price?

Answer 54

Shareholders: potential profit increase Management: improved performance Government: more tax

Question 55

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the overlap to cutting costs?

Answer 55

Shareholders: potential profit Managment: achieve objectives

Question 56

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the overlap to new markets/products?

Answer 56

Shareholders: potential profit Employees: job security Suppliers: icreased orders Community: greater employment

Question 57

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the conflict to relocate overseas?

Answer 57

Local community: impact on local economy Employees: loose jobs Government: paid less tax

Question 58

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the conflict to introducing new technology?

Answer 58

Employees: may loose jobs Lower employment: could impact on local community

Question 59

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the conflict to expand production?

Answer 59

Local community: greater congestion and pollution

Question 60

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the conflict to increase price?

Answer 60

Customers: cost more

Question 61

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the conflict to cut costs?

Answer 61

Employees: potential job loss Customers: quality might be affected Suppliers: pressure on prices

Question 62

(2.3 the role and importance of stakeholders). Conflicting and overlapping needs: What is the conflict to new market/products?

Answer 62

Local community: polution due to increased production

Question 63

(2.3 the role and importance of stakeholders). What are five key features that influence on the relationship with stakeholders?

Answer 63

Power and interest Leadership styles eg autocratic or democratic Business objectives eg some may be commited to an ethical approach Government legislation eg employment or environmental laws State of economy weather the company is blooming or is recession

Question 64

(2.3 the role and importance of stakeholders). What are the four ways of managing relationships with stakeholders?

Answer 64

Stakeholder mapping A culture of good communication Involvement and participation of stakeholders in decision making Careful planning