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Business > 3.2 - Managers, Leadership And Decision Making > Flashcards

3.2 - Managers, Leadership And Decision Making Flashcards

1
Q

Define managers

A
  1. Set objectives for their department
  2. Analyse data and make decisions
  3. Review the effectiveness of their decisions
  4. Organise resources
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2
Q

Define leaders

A

Motivate
Inspire

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3
Q

What is the Blake Mouton Grid used for?

A

Lets managers assess their leadership style
Assesses managers on how much they care for their employees and production

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4
Q

State and explain the 5 styles in the Blake Mouton Grid

A
  1. Impoverished style - low concern for people and production, poor management and low levels of motivation
  2. Produce/ perish style - authorian leads to neglect of workers needs resulting in demotivation and more staff turnover
  3. Country club style - over concern of workers. Not very productive or motivating
  4. Middle of the road - average concern and has mediocre results
  5. Team style - ideal leadership style high concern for both people and production
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5
Q

State and explain the 4 leadership styles

A
  1. Autocratic - leader makes decisions on their own, identifies objectives and achieve them. Useful for unskilled workers and crisis management, can demotivate
  2. Paternalistic - consults workers before decision making. Explains the decisions and persuades them to say it is in their interest, they get involves
  3. Democratic - both workers snd leaders participate in decision making, discuss issues, listen to advice, confidence in workers increases motivation.
  4. Laissez faire - leaders offer coaching and support but rarely interfere in the running of a business. This is a weak form of leaderships. Only appropriate for small, motivated workers
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6
Q

Factors best for autocratic / authorial leadership

A
  1. Urgent tasks
  2. Unskilled workers
  3. Recessions
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7
Q

Factors best paternalistic leadership

A

Recessions

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8
Q

Factors best for democratic leadership

A
  1. Educated, small groups
  2. Economy is growing
  3. Increases competition
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9
Q

Factors best for Laissez Faire leadership

A

Small group of motivated workers

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10
Q

What is the Tannenbaum Schmidt Continuum used for?

A

To put leadership styles on a scale

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11
Q

What are the seven types of management styles?

A
  1. Tells - no involvement of employees
  2. Sells - workforce don’t influence decision making
  3. Suggests - outlines decisions helps to feel influencing
  4. Consults - invites discussion, can modify decisions
  5. Joins - manager makes final decision
  6. Delegates - manager outlines a problem but sets constraints
  7. Abdicates - responsibility lies on the workforce
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12
Q

What is the scientific decision making process?

A
  1. Set objectives
  2. Collect data
  3. Analyse data
  4. Make process
  5. Implement decision
  6. Review decision
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13
Q

What are the advantages and disadvantages of using the scientific decision making process?

A

Advantages - logical and structured
Disadvantages - costly and time consuming

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14
Q

Define intuition

A

Making decisions on gut instinct

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15
Q

What are the advantages and disadvantages of using the intuition decision making process?

A

Advantages - made quickly, good for new data
Disadvantages - risky can makes mistakes and can be irrational

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16
Q

What are the 5 influences on decision making?

A
  1. Mission - main purpose
  2. Objectives - targets
  3. Ethics - moral and social views
  4. External environment - competition
  5. Resource constraints
17
Q

Define opportunity cost and its influence on decision making

A

Benefit that is given up in order to do something else, cost of the choice that should made.
This puts a value on the product or decision on what they gave up
Managers compare opportunity costs when making decisions

18
Q

Risks in decision making

A

Some decisions are highly risky but if successful can bring high rewards.

19
Q

Rewards in decision making

A

Decisions bring out rewards
They can be financial or benefit in other ways such as huger productivity or lower staff turnover

20
Q

Uncertainty in decision making

A

Outcome of a decision

21
Q

What does making decisions mean in business?

A

Calculating;
1. Cost
2. Outcome
3. Probability

22
Q

Formula for expected value

A

EV = probability x pay - off
Probability of the outcome happening multiplied by the pay off the business is expected to get
(Two end values)

23
Q

Define net gain

A

Financial gain after initial costs of the decision is subtracted

24
Q

Formula for net gain

A

NG = EV - IC

25
Q

Define pay-off

A

Outcome of a successful decision

26
Q

What is the purpose of a decision tree

A

To show which course of action is best

27
Q

Explain how a decision tree works

A
  1. Identify which courses of action are open for the business
  2. Possible outcomes of the actions with probabilities
  3. Calculate expected value and net gain
  4. Choose the course of action which has the highest net gain - most worthwhile
28
Q

What are the advantages of decision trees?

A
  1. Works out the probability and potential pay off - not vague
  2. Good visual representation
  3. Can compare option quantitatively and objectively
  4. Useful for familiar situations
29
Q

What the disadvantages of decision trees?

A
  1. Quantitative so not qualitative (employees opinions)
  2. Could be inaccurate
  3. Doesn’t consider short term solutions
30
Q

Define stakeholder

A

Everyone affected by a business

31
Q

Who are the internal stakeholders?

A
  1. Owners - make profit if successful, shareholders are the owners - want high dividends and share prices
  2. Employees - job security, wok conditions, promoting and wage
32
Q

Who are the external stakeholders?

A
  1. Customers- high quality at low prices
  2. Suppliers - sell raw material - affects their income and cash flow
  3. Local community - local employment and sponsors
  4. Government - more taxes for profits
  5. Creditors - who the business pays e.g. banks
33
Q

Why do the needs of shareholders overlap and conflict

A

They have different objectives
A business must therefore create a balance
They sometimes have overlapping interests

34
Q

What are the 2 ways shareholders can be managed?

A
  1. Consulting - before making major decisions helps them to feel valued for their opinions
  2. Communicating - keeps employees informed about business changes and using social media to communicate with customers
35
Q

What is shareholder mapping?

A

It helps to manage stakeholders and consider their importance of power and interest over the business
This determines how much communication and attention is needed
Stakeholders with high levels of both power and interest are managed closely - satisfaction is vital

36
Q

Define stakeholder

A

An individual or organisation who is interested in the activities and decision making of a business

37
Q

Define opportunity cost

A

The Benefit forgone of the next best alternative as a result of a decision

Business (6 decks)

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