2.1, 2.2, 2.3 Flashcards
what are the 4 functions of management
- planning
- organising
- directing
- controlling
what is planning
- looking into the future after evaluating the companies current position
- planning could vary due to external factors
- planning helps managers reduce the chance fir failure in the future, a plan can highlight problems and encourage managers to find a solution
what is organising
- mangers must assemble the resources that they need to carry out the plan
- management will need to determine the internal organisation structure and establish and maintain relationship, as well as allocating necessary resources
what is directing
- management is able to influence and oversee the behaviour of staff in achieving the companies goals as well as assisting them by providing necessary resources
- motivation- managers tend to motivate employees to assist in achieving objectives more efficiently, making directing easier
- communication- effective communication can mean that directing may be easier
what is controlling
- setting standards using company objectives, and reviewing and reporting performance
- compare the objectives and the performance to determine any necessary corrective or preventive action
what are the 5 areas of the Blake mouton grid
- impoverished- 1 people, 1 task
- country club- 9 people, 1 task
- produce or perish- 1 people, 9 task
- middle-of-the-road- 5 people, 5 task
- team style- 9 people, 9 task
what is autocratic leadership
- primarily one-way communication (downwards)
- minimal delegation
- close supervision of employees
- one person or a few people in control, making all the decisions themselves
when is autocratic leadership appropriate
- in emergencies where quick decision making is necessary
- when the same message needs to be given out to everyone
- when managers are responsible for a large number of employees (usually unskilled)
when is autocratic leadership inappropriate
- when taking highly complex decisions requiring diverse knowledge and skill
- when leading highly skilled employees
- where junior managers are expected to develop a full range of managerial skills
what is democratic leadership
- leader delegates a lot to employees, encourages decentralisation
- leader and subordinates discuss decisions and issues themselves
- the leader takes inti consideration advice from employees
- subordinates are empowered and have greater control of their working lives
- may not be very effective in an emergency
- may however motivate workers through delegation
what is laissez-faire leadership
- leader has minimal input
- usually for highly skilled employees, eg scientists
- employees are empowered to take majority of decisions themselves
- organisation could lack a sense of direction however with no leader
what is a programmed decision
deal with problems that are familiar and where the information required to make them is easy to obtain
what is a non-programmed decision
deal with situations that are unstructured and require a unique solution, may be risky
benefits of decision trees
- allows managers to evaluate all options and consider the possible consequence of all of them
- may result in a more logical, less rushed process based off of evidence instead of gut feeling
- enforces managers to refer to the quantifiable data and consider the forecast costs, benefits and probabilities
- provide logical comparisons
drawbacks of decision trees
- only include financial and quantifiable data, the business could be in a state that doesn’t allow a decision to be as successful as predicted
- estimations of probability
- difficult to use successfully
5 influences on decision making
- the business’s missions and objectives
- ethics
- risk involved
- external environment
- resource constraints
what are stakeholders
individuals or groups within society who have an interest in a business’s operation and performance
what is the difference between a primary stakeholder and a secondary stakeholder
people that are directly affected by a business’s decisions are primary stakeholders whereas secondary stakeholder are not directly affected by an organisations decisions
name 6 stakeholders
customers, local communities, suppliers, government agencies, shareholders and employees
