3.2 - MANAGEMENT, LEADERSHIP AND DECISION MAKING Flashcards
1
Q
Role of managers
A
- set objectives
- analyses and interoperates data
- make and review decisions
- appraise employee strengths and weaknesses
- lead staff
2
Q
Leadership styles - Authoritarian
A
- makes decision on own
- useful for unskilled workers and in crisis management
- can be demotivating for able employees
3
Q
Leadership styles - paternaistic
A
- softer form of autocratic
- leader consults before making decisions - explains decisions to persuade them that decisions are in their interest
- positive motivator
4
Q
Leadership styles - Democratic
A
- encourages workforce to participate in
- discus issues with workers, delegated and listen to advice
- often increases motivation and takes wight of leaders
5
Q
Leadership styles - Laissez-faire
A
- weak form of leadership
- rarely interfere with running a business
- hands-off approach, will only work with a small, highly motivated team of able workers
6
Q
TannenBaum Schmidt - tells
A
- authoritarian
- zero involvement
- not trusted with decisions
7
Q
TannenBaum Schmidt - sells
A
- manager makes decision but presents to workforce
- can ask questions but aren’t involved in decisions
8
Q
TannenBaum Schmidt- suggests
A
- decision outlined to workforce
- allowed to discuss and ask questions
- helps them feel their opinion is being considered
9
Q
TannenBaum Schmidt- consults
A
- manager proposes decision and invites discussion
- decision is open to modification
- recognises insight and value of workforce
10
Q
TannenBaum Schmidt - Joins
A
- manager proposes problem and workforce discus solutions
- manager will make final decision
- useful if workforce have specififc knowledge
11
Q
TannenBaum Schmidt - delegates
A
- workforce discus proposed decision and make final choice
- manager will be held accountable
- shows high level of trust in employees
12
Q
TannenBaum Schmidt - Abdicates
A
- team define and solve problem
- ultimate level of freedom
- team is highly trusted, which should be very motivating
- manager is still accountable for the decision
13
Q
What is the Blake Mouton Grid?
A
The grid assess managers based on how much they care about their employees and how much they care about production
14
Q
Blake Mouton grid - impoverished style
A
- low concern for people and production
- low level of motivation and productivity
- poor management
15
Q
Blake mouton grid - Produce or perish style
A
- Authoritarian
- often leads to the neglect of workers Ed’s and a demotivated workforce
- may result n heigh levels of staff turnover
16
Q
Blake mouton grid - Country Club Style
A
- over-concern with worker welfare
- happy but not very motivated or productive workplace
- doesn’t help increase output
17
Q
Blake Mouton grid - Middle of the road
A
- average concern for worker needs and average focus on production
- leads to medicore results
18
Q
Blake Mouton grid - Team style
A
- ideal leadership style
- high concern for people and production
- happy, motivated and productive staff
- often used non-financial methods of motivation
19
Q
scientific decision making
A
- based on data and outcomes compared to initial objectives
- reduces the risk of expensive mistakes being made
- logical and structured approach
- can be costly and time consuming - involves collecting and analysing data
- need to make sure data is reliable and up-to-date
20
Q
intuitive decision making
A
- based an a hunch/gut instinct
- can be sensed based on past experience by good managers
- can be made quickly, if its a new situation data may not be useful
- it can be risky as gut insists are often irrational
21
Q
opportunity cost
A
- the benefit that’s given up to do something else
- puts value on a business in terms of what had to be given up
- businesses must choose where to use their limited resources
- opportunity cost is the value of the next best alternative that’s given up
22
Q
decision trees
A
- they know what the cost will be, but often the outcome isn’t certain
- probability is the likelihood of something occurring
- the expected value is the probability of something occurring, multiplied by the expected pay off
- net gain is the financial gain after initial costs of he decision have been subtracted
23
Q
advantages of decision trees
A
- allows managers think about the probability and potential pay-off
- visual reputation of potential outcomes
- useful in familiar situations where a business has enough experience to make accurate estimations
24
Q
disadvantages of decision trees
A
- no qualitive data, which businesses should always use when making decisions
- probabilities are hard to predict accurately
25
Q
internal stakeholders - people inside the business
A
- owners are the most important stakeholders (decide what happens in a business)
- in limited companies shareholders are the owners (high dividend and share price)
26
Q
external stakeholders - people outside the business
A
- customers (high quality, low prices)
-suppliers (fair price, on time) - local community (will suffer if noise pollution and job loss)
- government (good profits = more taxes)
27
Q
stakeholder objectives
A
- businesses have to strike a balance to try keep all stakeholders happy
- important to balance short-term profit and social responsibility
- example - may cut labour costs by relocating production abroad, which will mean job loss in the UK which is bad for employees and the local community
- Company must satisfy as many groups as possible and still survive finically
28
Q
Stakeholder mapping
A
- considers power and interest
- the map helps how best to manage stakeholders
- stakeholders are divided into four quadrants which determines how much communication and attention is needed
- high power and high interest are managed the most closely as they are the most vital
- little power and little interest require monitoring but are less important
29
Q
stakeholder relationships
A
- businesses need to mange relationships with stakeholders
- putting one stakeholder over the other can result in consequences for other areas in the company
- consulting with stakeholders is a good way of managing relationships as they will feel more valued in the company
- good communication is vital
