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

3.2 - Managers, Leadership And Decision Making Flashcards

1
Q

Leadership

A

A relationship through which one person influences the behaviour or actions of other people

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2
Q

What are the 2 different leadership perspectives

A

Traditional and modern

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3
Q

What is the traditional leadership perspective

A

Command and control
Decision making

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4
Q

What is the modern leadership perspective

A

Inspiring employees
Creating a vision
Shaping core values and cultures
Building effective teams

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5
Q

What do managers do?

A
  • setting objectives
  • analysis data
  • leading staff
  • make decisions
  • review the impact
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6
Q

Why is leadership increasing important (2 reasons)

A
  • changing organisational structures : greater delegation, teamwork, coaching and support
  • rapid change : constant feature of business life, soft skills of leadership and management are increasingly important
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7
Q

Strategic leadership

A

People who influence or control the corporate strategy of a business

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8
Q

Where does strategic leadership occur?

A

Small firms and larger corporations

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9
Q

How is strategic leadership demonstrated (4 ways)

A

Command - leaders take control

Vision - leaders set visions

Decision making - leader ways up options and decides

Symbolic - embodiment of strategy, not involved day to day

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10
Q

Leaders attributes

A
  • inspire people
  • build relationships
  • take risks
  • have followers
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11
Q

Managers attributes

A
  • enact the plan
  • use authority
  • manage risks
  • have subordinates
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12
Q

How to tell the difference between managers and leaders

A

‘Managers do things right, leaders do the right things’

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13
Q

3 levels of traditional management

A

Senior
Middle
Junior

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14
Q

Senior management attributes

A

E.G. board of directors
- set corporate objectives and strategic direction
- board is responsible to shareholders, led by CEO

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15
Q

Middle management attributes

A
  • accountable to senior management
  • runs business functions and departments
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16
Q

Junior management attributes

A
  • supervisory role, accountable to middle management
  • monitor and control day to day tasks, and manage teams of workers
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17
Q

What is a leadership style

A

The way that the functions of a leadership is carried out and the way that leader behaves

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18
Q

4 types of leadership style

A
  • authoritarian
  • paternalistic
  • democratic
  • laissez-faire
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19
Q

Authoritarian + example

A
  • focus of power is with the managers
  • communication is top down and one way
  • formal systems of command and control
  • use of regards and penalties
  • very little delegation to employees
    E.G. McGregor Theory X approach
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20
Q

Paternalistic + example

A
  • leader decides what’s best for employees
  • like parent/child realtionship
  • little delegation
  • softer form of authoritarian
    E.G. mayo
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21
Q

Democratic + example

A
  • focus of power is more with the group as a whole
  • leadership functions are shared within the group
  • employees have greater involvement in decision making
  • emphasis on delegation and consultation
  • trade off between speed of decision making and motivation and morale
    E.G. McGregor Theory Y approach
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22
Q

Laissez-faire + example

A
  • leader has little input into day to day decision making
  • conscious decision to delegate power
  • mangers / employees have freedom to do what they think is best
  • effect when staff are ready and willing to take responsibility
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23
Q

Advantages of authoritarian

A
  • use of rewards
  • use of formal systems
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24
Q

Advantages of paternalistic

A
  • softer form of authoritarian
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25
Q

Advantages of democratic

A
  • leadership functions are shared in group
  • emphasis on delegation and consultation
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26
Q

Advantages of laissez-faire

A
  • managers / employees have freedom to do what they believe is best
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27
Q

Disadvantages of authoritarian

A
  • communication is one way
  • very little delegation to employees
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28
Q

Disadvantages of paternalistic

A
  • little delegation to employees
  • leader makes all decisions still
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29
Q

Disadvantages of democratic

A
  • lack of effective
  • leadership could lead to split decisions
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30
Q

Disadvantages of laissez-faire

A
  • lack of complete leadership
  • could lead to confusion amongst what to do with so math people leading
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31
Q

2 major group types in the McGregor theory

A

Theory X
Theory Y

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32
Q

Theory X managers summary

A
  • average worker is lazy and dislikes work
  • works need to be controlled and directed
  • centralised organisation
  • exercise of authority
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33
Q

Theory Y managers summary

A
  • most people enjoy work
  • workers take responsibility and organise themselves
  • decision making can be delegated
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34
Q

Why is modern business leadership moving away from authoritarian

A
  • changes in societies values
  • better educated workforce
  • focus on need for soft HR skills
  • changing workplace organisation
  • greater workplace legislation
  • pressure for greater employee involvement
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35
Q

Tannenbaum and schmidt continuum

A

Continuum of leadership behaviour, represents a range of action related to the degree of authority used by managers and area of freedom available to non managers

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36
Q

Tells leadership style

A

Leader identify problems, make decisions and announces to subordinates and expects implementation

37
Q

Sells leadership style

A

Leader still makes decisions but attempts to overcome resistance through discussion and persuasion

38
Q

Consults leadership style

A

Leader identifies problem and presents it to the group, they listen to advice and suggestions before making final decision

39
Q

Joins/shares leadership style

A

Leader defines the problem and passes on the solving / decision making to the group (manager can be apart of)

40
Q

Advantages of tells

A

Quick, leader makes decisions and tells others

41
Q

Disadvantages of tells

A
  • Dictator mentality
  • Employees lack motivation and are less engaged now
42
Q

When might tells be used

A

When an issue needs to be resolved fast

43
Q

Advantages of sells

A
  • Employees have slight more input
  • Useful
  • Limits doubt over task
44
Q

Disadvantages of sells

A

Ineffective if discussion doesn’t work

45
Q

When might sells be useful

A

High task / high relationship

46
Q

Advantages of consults

A

Democratic, everyone has a say

47
Q

Disadvantages of consults

A

People may disagree, cause leader to pick anyways

48
Q

When might consults be used

A

More in-depth issue needing to be discussed

49
Q

Advantages of joins/shares

A

Employees have free decision making

50
Q

Disadvantages of joins/shares

A
  • take a long time
  • could cause issues/confusion
51
Q

When might joins/shares be useful

A

Group decision task, perhaps whole company vote/decision

52
Q

Factors effecting leadership styles

A
  • personal value systems
  • managers experience
  • confident insubordinates
  • feeling of security
  • nature of the business problems
  • organisational culture and tradition
  • pressure (time/costs)
  • effectiveness teams and groups
53
Q

Explain the Blake Mouton Managerial Grid

A
  • identifies 5 different leadership styles based on a grid which has 2 axis measuring:
  • concern for people (y-axis)
  • concern for completing task (x-axis)
54
Q

What is a decision tree

A

A mathematical model used to help managers make decisions using estimates and probabilities to calculate likely outcomes to help decide wether the net gain from a decision is worthwhile

55
Q

Probability

A

The % chance or possibility that an event will occur and all the outcomes must total to 1.

56
Q

Expected value

A

The financial value of an outcome calculated by multiplying the estimated financial effect by its probability

57
Q

Net gain

A

Value to be gained from taking a decision. Calculated by adding together the expected value of each outcome and deducting the costs associated with the decision

58
Q

2 broad approaches to decision making

A

Hunch
Scientific

59
Q

Hunch decision making

A
  • based on intuition, get and feel experience
  • key benefit : quick
  • hard to justify for business decisions involving significant risk
60
Q

Scientific decision making

A
  • based on data and analysis
  • downside : time consuming and costly
  • increasingly common and automated, supported by big data and data analytics
61
Q

How to make a decision

A
  1. Set objectives
  2. Gather data
  3. Analyse data
  4. Select a strategy
  5. Implement decision
  6. Review
62
Q

Opportunity cost

A

Cost of missing out on the next best alternative, the benefits that could have been gained by taking a different decision

63
Q

Why are opportunity costs important

A
  • most start up resources are limited for businesses
  • when resources are scarce, decisions about where to spend money are risky
  • people take calculated risks and weigh up the potential implications of decisions before choosing what’s best for the business
64
Q

Advantages of decision trees

A
  • choices are set in logical ways
  • potential options and choices are considered at the same time
  • risk with probabilities
  • likely costs are considered as well as potential benefits
  • easy to understand and tangible results
65
Q

Disadvantages of decision trees

A
  • probabilities are just estimates and prone to error
  • uses quantitative data and ignores qualitative aspects of decisions
  • doesn’t necessarily reduce the amount of risk
66
Q

Stakeholder

A

Any individual or organisation who has a vested interest in the activities and decision making of the business

67
Q

Footfall

A

Amount of people who come into the store, helps show data and market research

68
Q

Shareholders

A

Owns the business and may also work in the business

69
Q

Examples of stakeholders

A

Customers
Suppliers
Government
Competitors
Trade union
Media
Banks
Locals
Competitors

70
Q

Examples of internal stakeholders

A

Employees
Shareholders / owners

71
Q

Examples of connected stakeholders

A

Customers
Suppliers
Creditors

72
Q

Examples of external stakeholders

A

Competitors
Government
Society / the wider community

73
Q

What is a shareholders / owners interest

A

Return on investment and profits and dividends, success and growth of the business, proper running of the business

74
Q

What is a managers / employees interest

A

Rewards, basic pay and other financial incentives, job security and work conditions, promotion opportunities and job satisfaction and status motivation, roles and responsibilities

75
Q

What is a customer’s interest

A

Value for money, product quality and customer service

76
Q

What is a suppliers interest

A

Profitable trade with the business and financial stability

77
Q

What is a banks / other financial providers interest

A

Can the business repay amounts loaned or invested, profitability and cash flows of the business, growth in profits and values of the business

78
Q

What is a government interest

A

Correct collection and payment of tax, help the business grow - creating jobs, compliance with business legislation

79
Q

What is a local community interest

A

Success of the business - creating and retraining jobs, compliance with local laws and regulation (noise pollution)

80
Q

Functions in order of increasingly strategic - top (most strategic) to bottom (least strategic)

A

Mission
Strategic / corporate
Functional
Team
Individual

81
Q

Functions in order of increasingly detailed - top (most detailed) to bottom (least detailed)

A

Individual
Team
Functional
Strategic / corporate
Mission

82
Q

Functions of the business

A
  • Human Resources
  • Finance
  • Operations
  • Marketing
83
Q

Functions of corporate

A
  • profit maximisation
  • survival
  • growth
  • cash flow
  • social / ethical
84
Q

How to decide when stakeholder mapping

A
  1. Level of interest might motivate them to take action
  2. The extent to which the stakeholder may have power to influence the organisation
85
Q

What are the 3 key marketing measures

A
  • market size
  • market growth
  • market share
86
Q

Sales volume

A

Number of items sold or produced

87
Q

Sales values

A

Financial worth of items sold

88
Q

Sales values calc

A

Number of items sold x average price

89
Q

Market size

A

Potential sales for a firm, usually measured in terms of both volume (units) and values (sales). The size of the individual segments within overall market can be measured. Not normally a marketing objective, a firm cannot influence it.

Business (5 decks)

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