3.2 Managers, Leadership, Decision Making

Question 1

Autocratic leadership

Answer 1

Leaders make decisions without consulting the workforce

Question 2

Democratic leadership

Answer 2

Leaders allow team to be involved in decisions but make ultimate decision

Question 3

Laissez faire

Answer 3

Leaders allow workforce to make decisions

Question 4

Paternalistic

Answer 4

Leader acts as fatherly figure to workforce, makes decision but consults workforce

Question 5

Bureaucratic

Answer 5

Leader works to the rules and regulations

Question 6

Theory X managers

Answer 6

Average worker is lazy and dislikes work, workers need to be controlled and directed

Question 7

Theory y managers

Answer 7

Average worker enjoys work and takes responsibility and organise themselves (allows delegation)

Question 8

Tannenbaum-Schmidt continuum

Answer 8

Degree of authority used by manager (leadership style)

Question 9

Influences on style of management

Answer 9

Expertise/ experience of workforce, skills required, traits of leader

Question 10

Programmed decision making

Answer 10

Dealing with familiar problems

Question 11

Non-programmed decisions

Answer 11

Situations that are not familiar, require unique solutions

Question 12

Strategic decisions

Answer 12

Long term,major commitment and resources, difficult to reverse

Question 13

Tactical decisions

Answer 13

Short-term, fewer resources

Question 14

Scientific decision making

Answer 14

Based on numerical data, tactical decisions (made by computers)

Question 15

Intuition (trust your gut)

Answer 15

Based on intuition

Question 16

Opportunity cost

Answer 16

Cost of missing out on next best alternative

Question 17

Objective (influence on decisions)

Answer 17

Does the decisions help what the business should be doing

Question 18

Ethics (influence in decisions)

Answer 18

Provides moral guidance for mangers decisions

Question 19

Risk involved in decisions

Answer 19

High-risk decisions take longer to make- data needed

Question 20

External environment

Answer 20

Changes in outside world can influence decisions

Question 21

PESTEL

Answer 21

Political/ Economic/ Social/ Technological/ Environmental/ Legislations

Question 22

Resource constraints

Answer 22

Does manager have enough time/money/labour/materials to make the decision

Question 23

What do the shapes show on a decision tree

Answer 23

-Square represents that a decision needs to be made the lines the options
-possible outcomes are circles

Question 24

Why use a decision tree

Answer 24

Managers need to know that each option has a possible outcome of success and failure
-can work out an expected value

Question 25

What is the value of a decision tree

Answer 25

-allows for uncertainty -forces managers to consider impacts of possible options -set out clearly and logically -can improve the outcome of different options

Question 26

What are drawbacks of a decision tree

Answer 26

-doesn’t involve qualitative issues, only looks at finance -it is an estimate of the probability of outcomes -not well suited to strategic decisions

Question 27

What is a stakeholder

Answer 27

Individuals who are interested in or affected by the actions of a business

Question 28

What are the external stakeholders

Answer 28

-local community -managers -customers -suppliers -government -owners -employees

Question 29

What is the position of managers

Answer 29

In charge of employees, may get a financial bonus is they reach targets Concerned about budgets and targets

Question 30

What is the position of the suppliers

Answer 30

Need to know if they will get paid for goods/services Interested in future orders and building relationships using JIT.

Question 31

What is the position of the local community

Answer 31

Interested in the business as it may pollute the environment, may cause noise or impact house prices

Question 32

What is the position of the government

Answer 32

Need to know if taxes get paid and need business’a to adhere to the laws/legislations

Question 33

What is the position of of customers

Answer 33

Want good quality products/customer service

Question 34

What is the position of employees

Answer 34

Want to know if they have job security also interested in promotions

Question 35

What is a primary stakeholder

Answer 35

Directly affected by actions of a business (customers and employees)

Question 36

What is a secondary stakeholder

Answer 36

Do not have a direct relationship with a business but still impacted (general public/media)

Question 37

What is stakeholder mapping

Answer 37

-Way of analysing the key stakeholders before making decisions -mapped on their power and influence -helps managers see whether certain stakeholders need to be involved in certain decisions.

Question 38

Stages of stakeholder mop

Answer 38

-keep satisfied (high power, low interest) -monitor (low power, low interest) -manage closely (high power,high interest) -keep informed (low power, high interest)