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AQA A LEVEL BUSINESS > 3.2 Managers, Leadership And Decision Making > Flashcards

3.2 Managers, Leadership And Decision Making Flashcards

1
Q

What is an autocratic leadership style?

A

A leadership style in which leaders dictate without consultation of subordinates

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2
Q

What is an advantage of an autocratic leadership?

A

Quick decision making in stressful situations

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3
Q

What is a disadvantage of autocratic leadership?

A

It is too dependant on the leader.

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4
Q

What is democratic leadership style?

A

Where the leader allows employees to take part in decision making.

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5
Q

Advantage of democratic leadership style?

A

Employees feel motivated.

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6
Q

What is a disadvantage of democratic leadership style?

A

Depends on the skills and knowledge of employees

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7
Q

What is paternalistic leadership?

A

Where leaders make the right decision for employees they’re responsible for as though they are part of an extended family.

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8
Q

Advantages of paternalistic leadership style?

A

Loyalty from employees - increased staff retention.

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9
Q

Disadvantages of paternalistic leadership

A

This is still quite autocratic, employees may feel demotivated because of this.

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10
Q

What is a laissez faire leadership?

A

Leadership where subordinates may carry out activities and decisions freely

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11
Q

Advantage of laissez-faire

A

Suitable for creative industries

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12
Q

Disadvantage of laissez faire

A

May lead to poor productivity.

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13
Q

What is the Tannenbaum and Schmidt continuum?

A

Demonstrate the relationship between level of freedom that a manager chooses to give a team and the level of authority used by manager.

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14
Q

What is level 1 on the Tannenbaum Schmidt continuum?

A

TELL - manager tells staff about decisions.

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15
Q

What is level 2 on the Tannenbaum Schmidt continuum?

A

SELLS - manager sells or convinces staff about decision.

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16
Q

What is level 3 on the Tannenbaum Schmidt continuum?

A

CONSULTS - manager invites questions.

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17
Q

What is level 4 on the Tannenbaum Schmidt continuum?

A

CONSULT - manager makes decision subject to change.

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18
Q

What is level 5 on the Tannenbaum Schmidt continuum?

A

CONSULT - manager gets suggestions and makes decision

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19
Q

What is level 6 on the Tannenbaum Schmidt continuum?

A

SHARE - Manager sets parameters but lets staff makes decisions.

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20
Q

What is level 7 on the Tannenbaum Schmidt continuum?

A

SHARE - managers allows team to set parameters and make decisions.

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21
Q

What is the difference between leader and manager?

A

Leadership fosters creativity and encourages new ideas. In contrast, management prioritises efficiency and streamlining operations.

Leadership is risk taking while management is risk averse.

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22
Q

What is scientific decision making?

A

A scientific decision making is a method of making based on evidence and quantitative data

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23
Q

Scientific decision making benefits and drawbacks

A

+ evidence based for example historic data of sales
+supported decisions so that the final choice could be justified to those higher up in the hierarchy
-reduces creativity up in a businessand slows up the
Decision making process,
- Data can be wrong sometimes, out of date or biased

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24
Q

What is intuitive decision making?

A

Decisions carried out using feelings, opinions,thoughts, qualitative information

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25
Q

Intuitive decision making benefits and drawbacks?

A

+ allows for creative solutions to problems
+helps businesses to take quick decisions possibly giving them first mover advantage
- decision may be just a bad call
- decision may be subject to bias by decision maker

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26
Q

What is a decision tree?

A

A business can’t afford to follow every option so it may use a decision tree to analyse the probability of a success in a choice of strategies.it is a pictorial quantitative approach.

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27
Q

In a decision tree, what does the square represent?

A

Decision point → a business needs to make a decision,at this point.

28
Q

In a decision tree, what do the lines represent?

A

The possible choices a business can choose from

29
Q

In a decision tree what does the circle represent?

A

The different outcomes of the choices

30
Q

What do the lines coming out the circle (outcome of choices) represent?

A

The probability of whether it is a success or failure

31
Q

What do decision trees also show?

A
  • Payoff of each outcome
  • cost of the decisions
32
Q

How to calculate the expected value?

A

(probability success x payoff) +(probability failure x payoff)

33
Q

What is expected value?

A

A weighted average of each choice.

34
Q

How to calculate net gain?

A

Expected value - cost of choice

35
Q

What are the risks of not planning or making decisions

A
  • May risk losing out to competitors.
  • an example of not doing efficient decision making
    Would be being too slow to respond to changing
    Consumer trends and tastes
36
Q

Examples of rewards

A
  • better work/life balance
  • job security
  • keeping profit
37
Q

Decision making uncertainty

A
  • even if the decision involves high risk and uncertainty that doesn’t mean the business should avoid taking this decision, high risk decisions involve higher potential rewards.
  • if a business aims to expand internationally, it should carry out some market research to see if there is enough demand. - business should aim to minimise uncertainty by undertaking research to avoid potential failure
38
Q

Decision making: opportunity cost

A

Opportunity cost is the cost of making a choice or the sacrifice of the next alternative that would have been chosen. An example is when a business needs to choose between opening anew factory in the uk or starting a new promotional ad campaign.

39
Q

The use and value of decision trees in decision making

A

The data in decision trees is usually based on historical business, for example they would know the probability of success of launching a new product would be based on previous product launches and how well they turned out

40
Q

What is a stakeholder?

A

Anyone who has an interest in the business and is impacted by the way it trades

41
Q

Owners

A
  • internal stakeholder
  • owners established the business, they are interested in making a profit and achieving a profit and achieving the business objectives
42
Q

Employees

A
  • internal stakeholders
  • interested in business, want job security, also interested in promotional aspects
43
Q

Managers

A
  • internal stakeholders
  • interested in business as they may get a financial bonus if they reach targets they set, also interested in resource management costs, budgets and targets
44
Q

Competitors

A
  • external stakeholders
  • want to know what other businesses in the same industry are doing so that they can plan to keep ahead, for example, marketing mix, human resource management etc.
45
Q

Suppliers

A

External shareholders
Interested in future orders, if they’ll get paid for their services, may also be interested in building a relationship with the business in order to have a JIT system

46
Q

Customers

A
  • external stakeholders
  • want products and services to satisfy their needs
  • want to know if their products will continue to be sold
47
Q

Government

A
  • external stakeholders
  • want to know if the business will pay their taxes
  • also want to know if business will adhere to any laws that may apply, Health and safety at work act
48
Q

Local community

A
  • external stakeholders
  • community may not want business to open as it may harm local business trade
  • business may pollute environment
49
Q

What are pressure groups?

A
  • external stakeholders
  • try to influence business in interest of a particular cause for example, trade unions
50
Q

How are shareholders stakeholders?

A
  • they are interested in a business because they want to know if a profit will be made and if they’ll be paid a dividend
51
Q

Stakeholder mapping meaning

A
  • a stakeholder map is a visual representation of individuals, groups or organisations that have an influence on the business.
  • stakeholders are mapped on how much power and how much interest they have in the business, for example, investors would be high.
52
Q

Stakeholder mapping uses

A
  • helps managers to gain valuable insights into the stakeholders of a business, which should help it to become more successful and achieve its objectives.
  • keeps stakeholders happy will help reduce the risks of a business.
53
Q

On the stakeholder map, would does a business have to do for high stakeholder power, but low interest

A

Keep satisfied

54
Q

On the stakeholder map, would does a business have to do for high stakeholder power and high interest

A

Manage closely

55
Q

On the stakeholder map, would does a business have to do for low stakeholder power and interest

A

Monitor (low effort)

56
Q

On the stakeholder map, would does a business have to do for low stakeholder power and high interest

A

Keep informed

57
Q

Where would suppliers fit in the stakeholder mapping in terms of power

A

High

58
Q

Where would competitors fit in the stakeholder mapping in terms of power

A

Low

59
Q

Where would customers fit in the stakeholder mapping in terms of power

A

High

60
Q

Where would local community fit in the stakeholder mapping in terms of power

A

High

61
Q

Where would government fit in the stakeholder mapping in terms of power

A

High

62
Q

Where would pressure groups fit in the stakeholder mapping in terms of power

A

Low

63
Q

Where would investors and shareholders fit in the stakeholder mapping in terms of power

A

High

64
Q

Where would employees fit in the stakeholder mapping in terms of power

A

Low

65
Q

Where would managers fit in the stakeholder mapping in terms of power

A

High

66
Q

Example of stakeholder conflict

A
  • employees may want high wages, while managers and owners are seeking to cut costs
  • suppliers want to be paid high prices, owners want to cut costs
  • customers want low priced quality products, owners want high profits and low costs
  • pressure groups want company to trade ethically, this is expensive, owners want low costs and high profits

AQA A LEVEL BUSINESS (12 decks)

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