Highlighted Exam Stuff Flashcards
What meant by the role of planning?
- Looking to co-ordinate a business’s activities so that it is moving forward in a focussed, coherent manner.
Why is the skill of communication important?
- Convey ideas across clearly
- Convey enthusiasm across clearly
- Persuades people to see from their point of view
What is centralisation?
- Where the majority of decisions are taken by senior managers at the top of a business
What is decentralisation?
- Where senior managers at the top give greater authority to staff lower down the organisation and to employees in other locations
Advantages of centralisation?
- Rapid decision making
- Ensures business pursues objectives set
- Economies of scale
Disadvantages of centralisation?
- Poor motivation from junior employees
- Heavy workload for senior managers
- Waste of skills and knowledge
- Impersonal business
Advantages of decentralisation?
- Improves motivation in junior employees
- Improves performance and loyalty
- Reduces workload for senior managers = more strategic decisions and focus on future
- Helps junior promotions
Disadvantages of decentralisation?
- Lack of co-ordination
- Lack of communication
- Increased costs - loss of economies
What is a routine decision?
Decisions taken regularly. Not unexpected - managers are prepared to take them as part of the regular duties
What is a non routine decision?
Decisions that occur irregularly. May be needed because of some unexpected event
What are the 5 forms of power?
- Coercive power - based on fear
- Reward power - based on ability to give benefits / rewards
- Expert power - based on expertise, skills, knowledge
- Legitimate / position power - position, title, role in organisation
- Referent power - based on charisma
What is involved in autocratic leadership?
- Gives little freedom to junior employees to make decision
- Retains control
- Communication downwards
Advantages of autocratic?
- Quick decision making
- Uniform message
- Lots of unskilled workers
Disadvantages of autocratic?
- Employees don’t have information support or confidence to act on initiative
- Dependant on leaders
- Slow day to day decisions
What is involved in paternalistic leadership?
- Autocratic but takes into account the interests of the workforce
- Consults & takes notice of views expressed by subordinates
- Retains control of decisions. Only delegates minor
Advantages of paternalistic?
- More like a family
- Loyal staff
- Low labour turnover
Disadvantages of paternalistic?
- No opportunity for creativity or initiative
2. Slow decisions
What is involved in democratic leadership?
- Allows subordinates role in decisions making
- Typically decision making powers are delegated from the leader to subordinates
- Explains decisions
Advantages of democratic leadership?
- Good communication throughout the business - up and down the structure.
- Encourages employees to offer suggestions and ideas - raises morale and motivation
Disadvantages of democratic leadership?
- Allows managers to absolve from responsibility
2. Less consistency of decision
What is empowerment and delegation?
This is when the manager gives more ‘power’ and delegates more responsibility to the employees. These are based on the beliefs that employees want to work and seek responsibility and enjoy opportunities to achieve and receive recognition. This improves motivation within the workforce
What are the five aspects of Maslow’s hierarchy of needs?
- Psychological needs - basic needs of life = shelter, food
- Safety needs - working in a healthy, safe environment
- Social needs - relationships with colleagues
- Esteem needs - achievement, status, reputation
- Self actualisation - personal growth, fulfillment
