3.2 Managers, leadership and decision making

Question 1

Leadership

Answer 1

deciding on a direction for a company in relation to its objectives and inspiring staff

Question 2

Types of leaders

Answer 2

Autocratic
Democratic
Paternalistic
Laissez-faire

Question 3

Autocratic

Answer 3

Tells leadership style
Solo decisions
High dependency on leader
Can create demotivation + alienation of staff
Can be valuable in quick decision situation

Question 4

Democratic

Answer 4

Encourages decision making from different perspectives
Consultative
Can help motivation
Improves sharing of ideas
Workers feel ownership of their ideas
Can delay decision making

Question 5

Paternalistic

Answer 5

Employees consulted but leader makes decisions
Leaders like a father figure
Close supervision
Manager attempts to look after needs of subordinates
Authoritarian

Question 6

Laissez-Faire

Answer 6

Joins leadership style
Responsibilities shared
Useful for creative ideas
Can be motivational as staff have more control
Coordination + decision making can be time consuming
Can lack direction
Relies on good teamwork

Question 7

Management

Answer 7

Getting things done by organising other people to do it

Question 8

Tannenbaum Schmidt Continuum

Answer 8

A model that highlights the range of management styles
Boss centred -> Subordinate centred
Tell/Sell/Consults/Joins

Question 9

Blake Mouton Grid

Answer 9

A grid of different management styles
Based on a low to high scale
Y axis = Concern for people
X axis = Concern for the task
Low-low = Impoverished
Low-high = Produce or perish
High-low = Country club
High-high = Team leader

Question 10

Stakeholder

Answer 10

A party that has an interest in a company and can either affect or be affected by the business

Question 11

Stakeholders - Internal/External

Answer 11

Internal = directly involved with the operations and strategy of the organisation
External = Do not directly work within the business but is affected by the actions and outcomes of the business

Question 12

Primary and secondary stakeholders

Answer 12

Primary = Have a direct relationship with the business
Secondary = aren't directly related to the business but are affected by their actions

Question 13

Types of stakeholders

Answer 13

Managers and workers

Customers, suppliers, banks, the government, local community, pressure groups + shareholders

Question 14

Stakeholder mapping

Answer 14

Maps the relative power of each stakeholder group against the degree of interest
X axis = Interest
Y axis = power

Question 15

Decision trees

Answer 15

1) A box to represent start
2) Lines for how many different costs with costs written on them
3) Circles at end of lines
4) Lines out of circles for the probability
5) Outcome prices

Question 16

Expected value + Net gain

Answer 16

EV = the outcomes of one choice added together
NG = EV - Cost

Question 17

Opportunity cost

Answer 17

All decisions have an opportunity cost

The cost of one decision in terms of the next best alternative foregone

Question 18

Intuition decision making

Answer 18

Allows for quick decision making. Encourages innovation and creativity. Reliant on experience + expertise. Hard to justify.

Question 19

Scientific decision making

Answer 19

Decision trees; quantifiable evidence, logical thought process
May require expensive data and is time consuming
1) Set objectives 2) Gather data 3) Analyse data 4) Make a decision 5) Implement decision 6) Review decision