management and decisions Flashcards
what do managers do?
measure performance, analyze data, set objectives , organize
5 main jobs they do
planning organizing commanding communicating controlling
leadership styles
authoritarian paternalistic democratic laissez- faire
what are in the Blake mouton grid
impoverished ,country club, produce or perish, middle of the road, team leader
what does the Blake mouton grid measure
how much the leaders care about people and production ( concerns for people and concerns for production)
what is the Tannenbaum Schmidt continuum
it measures the level of authority in the business and how much freedom the workers have
levels of the continuum
tells, sells, suggests ,consults ,joins, delegates, abdicates
what is opportunity cost
the cost of missing on on the next best alternative
trade offs
they occur when having more of one thing can lead to having less of another (cause and effect)
influences of decision making
-budget
-business objectives , if it fits with the overall objective therefore the mission of the business
-whos making the decision -willingness to take risks
-reliability of data
-external environment (market conditions)
what is scientific decision making
making decisions based of scientific data and reasoning, not based of a ‘hunch’
types of scientific decision making methods
decision trees
investment appraisal
sales forecasting
sensitivity analysis/simulation analysis
dynamic pricing
pros of scientific decision making
evidence based
removes some subjective judgment
cons of scientific decision making
data may not be reliable
data may be out of date
still relies on assumptions
no guarantee of right decision
ignores business experience and curtail aspects of the business
what is intuitive decision making
a decision based on intuition, gut feeling or hunch
