3.2 MANAGEMENT, LEADERSHIP AND DECISION MAKING Flashcards
State the five key tasks of a manager
- Planning
- Organising
- Commanding
- Coordinating
- Controlling
State the three levels of management
- Senior Management
- Middle Management
- Junior Management
Define Senior Management
Set corporate objectives & strategic direction
E.g. Board of Directors
Define Middle Management
Run business functions and departments
Define Junior Management
Supervisory role
Monitor & control day-to-day tasks, and manage teams of workers
Name the stages of the Tannenbaum and Schmidt Continuum
Tell, sell, consult, join
Explain the Tannenbaum and Schmidt Continuum
Left = more autocratic
Right = more democratic
Illustrates a range of potential management and leadership styles
Degree of authority vs. Area of freedom
Advantages of Tannenbaum and Schmidt Continuum
- Gives you a range of ways in which to involve and interact with your team, allowing you to adapt leadership ways to become more democratic
- Allows you to understand how your approach should change over time as the situation changes.
- Provides an incremental way to increase or reduce your team’s involvement in decision making.
- Recognises that the chosen leadership style depends on a variety of factors such as leader’s personality
Disadvantages of Tannenbaum and Schmidt Continuum
- Only examines the process of giving a task to your team, not what happens next- DOESNT show full picture
- Down to opinion of which is the best approach to take, no mechanism is provided
Name all the different leadership styles of Blake Mouton Grid (with positioning)
- Country club (Top Left)
- Impoverished (Bottom Left)
- Authoritarian (Bottom Right)
- Team leader (Top Right)
- Middle of the road (Middle)
Name the axis on the Blake Mouton Grid
Y Axis - Concern for people
X Axis - Concern for task
Define scientific decision making
Using calculations and quantitative data to make a decision
What sort of decision making is decision trees?
Scientific decision making
Define Hunch and Intuition Decision Making
GUT FEELING
Advantages of Hunch and Intuition Decision Making
Speedy, based on personal experience
Disadvantages of Hunch and Intuition Decision Making
Can be unsuitable for important decisions
May be too hasty, more susceptible to making the wrong decision
Could be unreliable, depending on who is making the decision
Equation for Net Gain (Decision Trees)
Expected value - initial cost of decision
How to you find the net gain on a decision tree?
STEP BY STEP
- Multiply probability by outtake (ending bit) on both high and low sales
- Add the answers of both these together to find the expected value
- Subtract this answer from cost of the option to find the net gain
- DO THE SAME FOR OPTION 2
- Compare both net gains and see which one is higher to find the better option
What would be best if both options’ net gains were negative numbers? (Decision trees)
‘Do nothing’
Advantages of decision trees
- Logical format
- Use of probability enables the ‘risk option’ to be addressed
- Easy to understand / easy layout
Disadvantages of decision trees
- Probabilities = estimates, allows for error
- Prone to bias, opinions on the probability
- Decision making doesnt necessarily reduce risk
Influences on decision making
- Objectives
- Budget
- Organisational structure
- Attitude to taking risks
- Availability of data
- External environment
Define Stakeholder Mapping
- How a business should respond to different stakeholder powers
- Which stakeholders need to be considered in decision making
- Businesses use them to help inform decision making
What two factors are concerned when making a market map?
- Power of stakeholders
2. Interest of stakeholders
