Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

* Business Studies > Chapter 2 - Managers , Leadership And Decision Making > Flashcards

Chapter 2 - Managers , Leadership And Decision Making Flashcards

1
Q

What are the three types of leadership ?

A

Autocratic
Democratic
Laissez-faire

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is autocratic leadership?

A

Also known as authoritarian
Individual control over all decisions little input from group members
Typically makes choices based on their ideas and judgements
Rarely accept advice from followers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the advantages of an autocratic leadership style

A

Quick decisions made as there is less consultation time
Total control- not reliant on others
Close oversight - one person keeps close watch on all other workers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the disadvantages of an autocratic leadership

A

Increased work burden - solely relies on one person
Individual cannot have a lot of time off - must be a hands on person
Unmotivational for skilled workers - told how to do a job they already know
No feedback - one way communication can cause misunderstandings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a democratic leadership style

A

Also known as participative leader
Involves a team guided by a leader
All individuals are involved in decision making
Leader has authority to make the final decision of he group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the advantages of a democratic leadership

A

Communication gap is reduced
More communication
More feedback is received as issues are more addressable
More skills have input creating a more realistic solution
Motivation is higher as employees are listened to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the disadvantages of a democratic leader

A

Decision process can be long and drawn our - all employees to listen to and consult

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a laissez faire leadership style

A

Also know as delegative

Refers to a style in which leaders are hands off and allow group members to make the decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the advantages of a laissez faire leadership

A

Effective if group members are highly skilled and motivated - sensible decisions will be made
If group members are more knowledgable than group leaders in areas it allows experts to demonstrate deep knowledge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the disadvantage of a laissez faire leadership

A

Not deal if group members are not experts of highly skilled in which the decisions need to be made
If not motivated projects can go seriously off track and deadlines will be missed
Could be leaders way of avoiding personal responsibilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Define authority

A

Power or ability to be able to carry out an action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define delegation

A

Passing authority down organisational hierarchy. Only genuine if leader relinquishes some control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Empowerment

A

Provides subordinates with means to exercise power or control over their working lives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Define Decentralisation

A

Entails passing authority from centre of organisation to others in business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What do the styles of leadership adopted depend on

A

Tradition and history of the business - John Lewis
Type of labour force - highly trained and skilled - Democratic
Nature of task and timescale - short term task focussed - Autocratic
- long term better managed - Laissez-faire
Personality of manager or leader - good communicator - Democratic
- decisive strong visioned Autocratic e.g. Mark Zuckerberg

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the 5 steps in decision making

A

Setting objectives

Gathering and interpreting information

Selecting the information

Implementing the decision

Reviewing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are programmed decisions

A

Decisions where there is information available to assist in decision making. May be a common area for decision making that managers are accustomed to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are non-programmed decisions

A

Decisions dealing with a situation that is unstructured and required a unique solution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are tactical decision

A

Mostly made by junior management, using fewer resources, in the shorter term and easily reversible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are strategic decisions

A

Made by senior management may involve a large amount of resources, will be longer term and harder to reverse than tactical decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Define leadership

A

Includes the function of ruling, guiding and inspiring other people within an organisation in pursuit of set objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Define management

A

Planning, organising directing and controlling all of part fo a business enterprise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Define motivation

A

Is the willingness to achieve a target or goal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Define communication

A

Exchange of information between one or more people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are the functions of a business

A

Planning
Directing
Organising
Controlling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is a scientific decision making

A

Decision making based on data . Using a logical rational approach to decision making

27
Q

What is intuition decision making

A

A decision relying on intuition or a hunch. Relying on instinct as to whether to make a decision

Appropriate when data is less likely to be available or fear it is not reliable

Richard Branson uses intuition

28
Q

What does scientific decision making involve

A

Recognising there is a problem or opportunity - that there is a decision to be made

Set objective for wanting to achieve 
Set decision criteria importance
Develop/identify alternatives
Compare by analysing data 
Chose and implement course action
Review effectiveness
29
Q

Why is scientific section making a costly process

A

Need to obtain large amount of data

Employ the correct staff with the right training

30
Q

What is a decision tree

A

A scientific decision making method has by which a mathematical model is used by managers to help make the right decisions.

It is a model that represents the likely outcomes for a business of a number of courses of actions on a diagram showing the financial consequences of each

31
Q

What does a square identify on a decision tree

A

Identifies where a decision has to be made

32
Q

What do nodes represent on decision trees

A

Alternative outcomes with probabilities of their success or failure which are shown by decimal figures on the appropriate line

33
Q

What is the EV on a decision tree

A

Expected value

Sun of all the outcomes multiplied by their probabilities written in the node

34
Q

What are “costs associated” in decision trees

A

Shown next to the decision with a minute sign - the cost of buying things associated to the outcome e.g. Purchase of new machinery

35
Q

Where are financial benefits listed on a decision tree

A

Right hand side of the tree

36
Q

What do you do after the sum of probably benefits for each node has been calculated on a. Decision tree

A

Take the cost away from the benefit to calculate net gain from the option

Select the option which generates the highest net gain - this could be take no option

37
Q

What are stakeholders

A

Individuals or groups affected by a business. Have an interest in. How the business operates and the degree of success it has

38
Q

Give some examples of a stakeholder

A

Customer, supplier, employee, shareholders

39
Q

How do stakeholders and shareholders differ

A

Shareholders can be a stakeholder - shareholders are those who have shares in a business and have invested in

40
Q

What are stakeholder objectives

A

What the stakeholders want from the business , for example the government would want the business to pay taxes.
Local council would want them to provide employment for the local community

41
Q

Why must stakeholder relationships be managed

A

To ensure the success of the business and its reputation

42
Q

What may poorly managed stakeholder relationships lead to

A

Industrial action - from employees
Switching brands - from customers
Protesting - from local community
Cashing in shares - shareholders

43
Q

What is the importance of stakeholders

A

Customers bring in money to the firm
Shareholders invest in the company
Employees build a good reputation - must have employees
Suppliers to bring goods in for output
Local community ensures no bad publicity or opposition
Government to comply with standards

44
Q

What are pressure groups

A

Organisations set up to campaign for a specific cause, they may campaign against the actions of government business or people

45
Q

Give an example if a pressure group

A

Green peace
Media watch U.K.
Vote leave watch

46
Q

Why do businesses set operational objectives

A 
To improve processes of the business concerned with 
Internal costs 
Productivity and efficiency 
Quality 
Flexibility - adaptable to change
Environment
47
Q

What does the term operations refer to

A

Internal workings of a business . Sometimes referred to as the engine room

48
Q

What type of objectives are used in setting operational objectives

A

SMART

49
Q

Within cost cutting (operational objectives) what areas may they do this in

A

Cut employees wage - reduces staff levels, pay minimum wage
Reduce production costs - cheaper materials, lower labour cost
Reduce haulage costs - large deliveries fill lorries
Reduce defects - salvage useful parts for re use
Location - cheaper locations

50
Q

What are the internal factors effecting business operations

A

Corporate objectives- most important internal influence. Operations and corporate objectives should not conflict

Finance - decisions often involve investment and costs. Financial position of business directly affects the choices available

Human Resources - quality and capacity of work force is a key factor. Targets for productivity will be affected by money invested into training and effectiveness of workforce planning

Marketing issues - nature of product determines the operational set up. Regular changes to the marketing mix may pace strain on operations.

51
Q

Name the external factors effecting business operations

A

Economic environment - crucial for operations. Sudden or short term changes in demand impact on capacity utilisation,productivity etc

Competitor efficiency flexibility - quicker more efficient or better quality competitors will place pressure on operations to deliver at least comparable performance

Technological change - where a product life cycle is short , innovation is ride and production processes are costly

Legal and environmental change - great regulation and legislation of the environment places new challenges for operations objectives

52
Q

What is labour productivity

A

Output of workforce expressed numerically

53
Q

What is the calculation for labour productivity

A

Total output (hour/day/week) / number of employees

54
Q

How could the information from a table containing timing units and labour productivity be used

A

Set objectives - produce 20 items between 9-10

55
Q

What is opportunity cost

A

Also considered when making decisions

This is the cost of the next best alternative that will be missed by making an alternative decision

56
Q

What limitations do decisions tress have

A

Managers may be influenced by their own bias towards one decision rather than another

Probabilities are usually guessed

57
Q

Out,I E a number of influences on decision making

A

Mission and objectives - business is guided in its decision making but it’s Mission and set objectives. E.g. Poundland influenced by pricing policy

Ethics - decisions that are morally correct e.g. Fair trade

External environment

Competition

Resources constraints

58
Q

What are the interests of the following stakeholders

Employees 
Customers
Shareholders
Suppliers
Government
A

Employee - job security, good working conditions and pay
Customers - good customer service and. Value for money
Shareholders - capital growth and dividends
Suppliers - regular orders and on time payments
Government - employment payment of taxes

59
Q

Potential overlap stakeholders interest of relocation overseas

A

Shareholders : potential for lower costs and increased profit

Management : achieve objectives in terms of costs and profit

60
Q

Potential conflict of stakeholders interests regarding relocation overseas

A

Local community - impact on local economy
Employees : lost jobs
Government - less tax

61
Q

Potential overlap of stakeholder interest regarding introduction of new technology

A

Shareholders and management : lower costs and potential profit
Consumer: may result in better quality and reliability

62
Q

Potential conflict of stakeholder interests regarding introduction of new technology

A

Employees - may lose jobs

Less employment could impact on local community

63
Q

Potential overlap of stakeholders interest over expanding production

A 
Shareholders - higher sales and profit
Employees - job opportunities 
Customers - greater availability
Suppliers - more orders
Government - more tax
Community - greater production
64
Q

Potential conflict of stakeholders interests over expanding production

A

Local community - greater congestion and pollution

* Business Studies (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions