3.4

Question 1

pros of short termism

Answer 1

Quick Results: Short-term decisions can lead to immediate results, which can be beneficial for addressing urgent issues or taking advantage of immediate opportunities.

Flexibility: Focusing on the short term allows businesses to be more agile and adapt quickly to changes in the market or environment.

Question 2

cons of short termism

Answer 2

Sustainability Issues: Short-term decisions might prioritize quick gains over sustainable growth, leading to potential problems down the line.

Employee Morale: Constant pressure to meet short-term targets can lead to employee burnout, decreased morale, and higher turnover rates.

Question 3

pros of long termism

Answer 3

Strategic Planning: Long-termism encourages thorough planning and development of comprehensive strategies that can lead to significant competitive advantages.

Innovation Encouragement: Investing in research and development is often part of long-term planning, fostering innovation and keeping the business ahead in its industry.

Question 4

cons of long termism

Answer 4

Delayed Results: Long-term decisions may take a considerable amount of time to show benefits, which can be challenging in fast-paced markets requiring quick responses.

Higher Initial Costs: Investing in long-term projects, such as new technologies or infrastructure, often requires significant upfront costs without immediate returns.

Question 5

pros of evidence based decision making

Answer 5

Accuracy: Decisions are based on reliable data and facts, leading to more accurate and effective outcomes.

Objectivity: Reduces personal biases and emotions, making the decision process more objective and fair.

Improved Performance: Using evidence can lead to better performance and efficiency, as decisions are grounded in proven information.

Question 6

cons of evidence based decision making

Answer 6

Time-Consuming: Gathering and analyzing evidence can take a lot of time and resources, which might delay the decision-making process.

Question 7

pros of subjective based decision making

Answer 7

Flexibility: Allows for more flexibility and adaptability in unique or rapidly changing situations where data may not be available.

Personal Insight: Leveraging personal experience and intuition can be valuable, especially in fields where data is scarce or not applicable.

Question 8

cons of subjective based decision making

Answer 8

Bias: Subjective decisions are prone to personal biases, emotions, and prejudices, which can lead to unfair or suboptimal outcomes.

Over-Reliance on Experience: Heavy reliance on personal experience might ignore new information or innovative approaches that could be beneficial.

Question 9

what is power culture?

Answer 9

In a power culture decision-making is carried out by one or a small number of powerful individuals usually at the top of the business hierarchy

Few rules exist to determine decision-making procedure

A competitive atmosphere between workers vying for power

Question 10

pros of power culture

Answer 10

Quick Decision-Making: Power cultures are typically centralized, with decisions made quickly by a few key individuals. This can lead to swift responses to opportunities and threats, giving the business a competitive edge.

Clear Leadership: There is a strong, clear direction from the top, which can provide a unified vision and purpose for the organization. Employees know who is in charge and what is expected of them, which can reduce confusion and streamline operations.

Question 11

cons of power culture

Answer 11

Limited Employee Autonomy: With power concentrated at the top, employees may have little input or autonomy in their roles. This can lead to decreased motivation, creativity, and job satisfaction, as employees might feel undervalued and disengaged.

Risk of Overdependence: The success of the organization can become overly dependent on the capabilities and decisions of a few individuals. If these key leaders make poor decisions or leave the company, it can lead to significant disruptions and challenges for the business.

Question 12

what is role culture

Answer 12

In a role culture key decisions are made by those with specific job roles
Power lies with those with particular job titles rather than those with desirable skills
There is usually a very clear hierarchical structure
Employees are expected to adhere to rules and understand their place in the hierarchy

Question 13

pros of role culture

Answer 13

Clear Structure: Role culture provides a clear organizational structure with defined roles and responsibilities. This clarity helps employees understand their duties and how their work contributes to the overall goals of the organization.

Consistency and Efficiency: With standardized procedures and clear guidelines, role culture ensures consistency in operations. This can lead to increased efficiency as employees follow established processes to complete tasks.

Question 14

cons of role culture

Answer 14

Inflexibility: Role culture can be rigid, making it difficult to adapt to changes or respond quickly to new opportunities and challenges. This inflexibility can hinder innovation and responsiveness in a dynamic business environment.

Lack of Motivation: The focus on defined roles and adherence to procedures can lead to a lack of autonomy for employees. This can result in decreased motivation and job satisfaction, as employees may feel restricted and undervalued in their positions.

Question 15

what is task culture?

Answer 15

In a task culture decisions are made by teams made up of employees with specific skills

Power lies with those with task-related skills (e.g. a finance specialist may make decisions related to funding within the group)

Question 16

pros of task culture

Answer 16

High Efficiency: Task culture emphasizes getting specific tasks and projects done efficiently. This focus can lead to high productivity and effective use of resources, as teams are often project-oriented and work collaboratively to achieve clear objectives.

Flexibility and Adaptability: Task culture allows for flexibility in team structure and roles. Teams are typically formed based on the skills needed for particular projects, enabling the business to adapt quickly to changes and new challenges.

Question 17

cons of task culture

Answer 17

Potential for Confusion: Since teams and roles can change frequently based on tasks and projects, employees might experience confusion or lack of clarity about their responsibilities and who to report to, leading to potential communication issues.

Short-Term Focus: Task culture may prioritize immediate project completion over long-term strategic goals. This focus can sometimes result in neglecting the broader vision and objectives of the organization, potentially hindering sustained growth and development.

Question 18

what is person culture

Answer 18

In a person culture individuals with extensive experience and skills are loosely brought together

Question 19

pros of person culture

Answer 19

Empowerment and Autonomy: In a person culture, individuals have a high degree of autonomy and control over their work. This empowerment can lead to increased job satisfaction, motivation, and creativity, as employees feel valued and trusted to make decisions.

Fostering Innovation: When individuals are at the center of the organizational culture, their unique skills and ideas are often recognized and encouraged. This environment can stimulate innovation and creative problem-solving, as employees feel free to explore new approaches without excessive constraints.

Question 20

cons of person culture

Answer 20

Lack of Coordination: With a strong focus on individual autonomy, there can be a lack of coordination and collaboration among employees. This can lead to inefficiencies, duplicated efforts, and challenges in achieving common organizational goals, as everyone may be working independently.

Difficult Decision-Making: In a person culture, decision-making can become challenging when individual interests and opinions conflict. Without a clear hierarchy or unified direction, it may be hard to reach consensus or implement decisions effectively, potentially slowing down progress and leading to internal conflicts.

Question 21

Stakeholder & Shareholder Influences

what is a stakeholder approach

Answer 21

focuses on interdependencies between stakeholder groups and take steps to ensure that the benefits and drawbacks of its operations are shared equally amongst them

Question 22

Stakeholder & Shareholder Influences

what is a shareholder approach

Answer 22

focused on meeting the needs of shareholders
Maximising profits in order to increase dividends and improve the share price

Question 23

what are ethics

Answer 23

Ethics relates to the rights or wrongs of making a strategic decision that are beyond legal requirements and in accordance with a businesses corporate responsibility principles

Question 25

what is CSR

Answer 25

conducting business activity in an ethical way and balancing the interests of shareholders with those of the wider community

Question 26

pros of csr

Answer 26

Enhanced Reputation: CSR can improve a company’s image and reputation. Businesses that are seen as socially responsible often gain trust and loyalty from customers, employees, and other stakeholders.

Attracting Talent: Companies with strong CSR programs can attract and retain talented employees who want to work for organizations that align with their values and contribute positively to society.

Question 27

cons of csr

Answer 27

Cost: Implementing CSR initiatives can be expensive. Costs can include investments in sustainable practices, charitable donations, and community programs, which may affect short-term profitability.

Distraction from Core Activities: Focusing heavily on CSR can sometimes divert attention and resources away from a company’s primary business activities. This might impact overall business performance if not managed properly.

Question 28

what is the Statement of Comprehensive Income / the Profit and Loss Account

Answer 28

shows the income and expenditure of a business over a period of time - usually a year - and calculates the amount of profit made

Question 29

Statement of Comprehensive Income questions

Answer 29

do them