3.2 Flashcards
What do Managers have to do?
Set objectives
Analyse and interpret data
Decision making
Motivate employees
4 leadership styles (A,P,D,L)
Authoritarian
-leader makes decision and instructs others what and how to do tasks
Paternalistic
-leader makes decisions but consults, explains and persuades team
Democratic
-team participate in decision making and leader makes decision with workforce
Laissez-faire
-leader rarely interferes with workers and allows them to make decisions based on their own intuition- mainly for skilled workers
Tannenbaum Schmidt Continuum
Tell ¦ Sell ¦ Consult ¦ Join
Blake Mouton grid
Concern for people vs concern for task
Country club ¦ Team management
-Middle of the road-
Impoverished ¦ Produce of perish
2 Types of decision making
Scientific
Intuition based
Benefits and drawbacks of Scientific decision making
Takes time
Can be expensive (gathering primary and secondary data)
Evidence to support decision- good for high risk decision
Benefits and drawbacks of Intuitive decision making
Quick decision based on experience
Less expensive
Often higher risk
Opportunity cost
What is given up in order to have something else
e.g £10 for cinema or pizza
If I choose pizza, cinema is the opportunity cost
Decision trees
Calculations
Net gain- £EV-Cost
EV- Success[£xprobility]+Failure[£xprobility]= £EV
2 types of stakeholders
Internal- employees, managers, owners
External- Local community, customers, supplier
Problems faced with stakeholders
conflicting objectives- local community may have ethical focuses where as the company is focused on profit
Stakeholder mapping
power vs interest
low power low interest- monitor
high power low interest- keep satisfied
low power high interest- keep informed
high power high interest- manage closely
