3.2 managers, leadership and decision making

Question 1

difference between leaders and managers?

Answer 1

leaders:
- inspire + influence
- consider long term strategy
- deal with and overcome challenges facing the business

managers:
- organising
- controlling
- planning
- directing

Question 2

define senior manager

Answer 2

set corporate objectives + strategic direction

Question 3

define middle manager

Answer 3

• accountable to senior management
• run business functions and departments

Question 4

define junior manager

Answer 4

supervisory role, monitor day to day tasks

Question 5

define leadership style

Answer 5

• way that the functions of leadership are carried out
• way that a leader behaves

Question 6

define authoritarian leadership style

Answer 6

information and decision making are kept at the top of an organisation

Question 7

advantage of authoritarian leadership style?

Answer 7

effective when a quick decision needs to be made

Question 8

disadvantage of authoritarian leadership style?

Answer 8

no consideration towards the views of employees = decreases the employees morale

Question 9

define paternalistic leadership style

Answer 9

dominant authority figure who treats employees as though they are members of a large, extended family

Question 10

advantage of paternalistic leadership style?

Answer 10

• staff remain loyal
• reduces competitiveness amongst staff

Question 11

disadvantage of paternalistic leadership style?

Answer 11

• staff become too dependent on employer
• leaders still make decisions

Question 12

define democratic leadership style

Answer 12

operate through a two-way communication, consultation and delegation

Question 13

advantage of democratic leadership style?

Answer 13

employees often feel valued = increased production and performance levels

Question 14

disadvantage of democratic leadership style?

Answer 14

too many ideas = slower decision making than autocratic

Question 15

define laissez-faire leadership style?

Answer 15

leaders are hands off and allow employees to make their own decisions

Question 16

advantage of laissez-faire leadership style?

Answer 16

employees have freedom and autonomy

Question 17

disadvantage of laissez-faire leadership style?

Answer 17

requires high level of trust

Question 18

tannenbaum + schmidt continuum represents a range of action related to the…..

Answer 18

degree of authority used by the manager + area of freedom available to non-managers

Question 19

tannenbaum + schmidt:
define 1-tells

Answer 19

leader identifies problems, makes decision and announces to subordinates; expects implementation

Question 20

tannenbaum + schmidt:
define 2 - sells

Answer 20

leader still makes decision, but attempts to overcome resistance through discussion + persuasion

Question 21

tannenbaum + schmidt:
define 3,4+5 - consults

Answer 21

leader identifies problem and presents it to the group. Listens to advice and suggestions before making a decision

Question 22

tannenbaum + schmidt:
define 6+7 joins

Answer 22

leader defines the problem and passes on the solving + decision-making to the group (which manger is part of)

Question 23

what factors affect leadership style?

Answer 23

• managers experience
• pressure (time, costs)
• feeling of security

Question 24

what is a decision tree?

Answer 24

• mathematical model used to help managers make decisions
• uses estimates and probabilities to calculate likely outcomes

Question 25

define probability

Answer 25

the chance of an outcome happening

Question 26

define expected value

Answer 26

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

Question 27

define NET gain

Answer 27

- value to be gained from taking a decision - calculated by adding together the expected value of each outcome and deducting the costs associated with that decision

Question 28

advantages of using decision trees?

Answer 28

- choices set out in logical way - likely costs are considered as well as potential benefits

Question 29

disadvantages of using decision trees?

Answer 29

- probabilities are just estimates = always prone to error - uses quantitative data only + ignores all qualitative aspects of decisions

Question 30

define making a decision based on a "hunch"

Answer 30

based on intuition, gut feel and experience

Question 31

define making a decision based on scientific

Answer 31

based on data and analysis

Question 32

advantages of intuition?

Answer 32

- encourages creativity and innovation - allows quick decision making

Question 33

disadvantages of intuition?

Answer 33

- high levels of risk as only considers one option - subject to bias

Question 34

advantages of scientific?

Answer 34

- support by quantifiable evidence - encourages the consideration of more than one possibility

Question 35

disadvantages of scientific?

Answer 35

- may require expensive data collection - time consuming

Question 36

define a stakeholder

Answer 36

individual or organisation that have an interest in the activities and success of a business

Question 37

state all the external stakeholders

Answer 37

- suppliers - local community - government - creditors - customers

Question 38

state all the internal stakeholders

Answer 38

- shareholder - owner - managers - employees

Question 39

stakeholder: suppliers definition + needs

Answer 39

the organisations that provide the raw materials of business needs regular and dependable orders + reliable payment

Question 40

stakeholder: local community definition + needs

Answer 40

people, organisations + businesses that live/ are located in the area around the business minimal noise + pollution, job opportunities

Question 41

stakeholder: government definition + needs

Answer 41

they will collect tax payments, introduce laws and offer grants to businesses payment of taxes and job creation. compliance with legislation

Question 42

stakeholder: creditors definition + needs

Answer 42

individuals or entities that have lent money to a business to be repaid on time with interest. make further loans

Question 43

stakeholder: shareholder/owner definition + needs

Answer 43

a group of people who have invested money into the company high profits and strong dividend payments. rising share prices

Question 44

stakeholder: managers definition + needs

Answer 44

staff who are responsible for implementing the decisions made by the owners reasonable salary and to be empowered to make decisions

Question 45

stakeholder: employees definition + needs

Answer 45

labour force an organisation relies on to produce the goods and services job security and good working conditions. high pay and promotional opportunities

Question 46

stakeholder: customers definition + needs

Answer 46

people who buy products or services from the business high quality, wide choice and good customer service

Question 47

advantages + disadvantages of stakeholder mapping ?

Answer 47

adv: - identify stakeholders with the most influence - avoid conflicts between stakeholders disadvantage: - can be subjective - only analyses the power and interest of stakeholders

Question 48

what are the influences on the relationship with stakeholders?

Answer 48

- media pressure - objectives - ownership - mangement styles

Question 49

managing relationship with: shareholder/owner

Answer 49

paying dividends + hold AGMs

Question 50

managing relationship with: managers

Answer 50

provide training + social events provide development opportunities

Question 51

managing relationship with: employees

Answer 51

provide training + social events

Question 52

managing relationship with: customers

Answer 52

conduct market research + accurate advertising

Question 53

managing relationship with: suppliers

Answer 53

payment on time + use use stock management software

Question 54

managing relationship with: local community

Answer 54

maintain surroundings + job creation

Question 55

managing relationship with: government

Answer 55

pay correct tax

Question 56

managing relationship with: creditors

Answer 56

maintain payment schedule