3.4 Flashcards
Definition of Short-Term
Decisions that are most likely to impact on objectives and tactics over next few years at most
Definition of Long-Term
Decisions that are most likely to impact long term mission and vision of the business
5 Examples of Short-Termist Approach
-Maximise short-term profits
-Minimise r+d costs
-Maximise returns to shareholders
-Minimise staff investment
-Prioritise short term contracts
3 Examples of Long-Termist Approach
-Investment into r+d
-Investment into human resources
-Building relationships
Definition of Subjective Decision Making
Guided by the personal opinions and experience of decision makers
Definition of Evidence Based Decision making
Involves the systematic and facts based approach when determining tactics, objectives and strategy
Definition of a Strong Culture
Where factors such as attitudes, values, and beliefs are embedded in the way that a business operates
Definition of a Weak Culture
Where there is likely to be a divide between workers and management and low
What is a Power Culture
Where decision making is carried out by one or a small number of powerful individuals
What is a Role Culture
Where key decisions are made by those with specific job roles and titles
What is Task Culture
Where decisions are made by teams of employees with specific skills
What is Person Culture
Decision making is left up to highly experienced and skilled staff, often working autonomously
3 ways culture is formed
-Leaders attitude
-Ownership type
-Human resource policy
3 Factors that cause difficulties in changing culture
-Existence of sub cultures
-Workers resisting change
-Contributing factors
3 Examples of Internal Stakeholders
-Employees
-Managers
-Owners
