managers, leadership and decision making Flashcards
what is the role of a manager
- set objective
- analyse performance
- review performance
- make decisions
- lead others
Tannenbaum and schmidt continuum
TELL- autocratic they tell their teams what to do
SELL- democratic, leader attempts to overcome resistance through discussion and persuasion
CONSULT- leader identifies problem, presents it to the group listens to advice before making decision
JOINS- leader defines the problem and passes on the solving and decision making to the group
Blake mouton
Measured by concern for results and people (x,y)
IMPOVERISHED MANAGEMENT - laissez fair, minimal effort on management (low, low)
COUNTRY CLUB- focus on creating safe, comfortable working environment hight, low
TASK MANAGEMENT - autocratic style, worker have to complete tasks nothing else low, high
TEAM MANAGEMENT - staff closely involved in decision making and feel values
MIDDLE OF THE ROAD MANAGEMENT - comprises made to achieve acceptable performance- seen to be less effective
Scientific decision making
Decision making dependant upon data, adopting a more systematic approach.
- decision trees
- investment appraisal (ARR, net present value)
- Dynamic pricing
evaluation of scientific decision making
+date drive = evidence based
+ removes some subjective judgement from decisions (investment appraisal- still some assumptions made- discount factors)
- may still rely on assumptions
- Doesn’t guarantee correct decision
- May ignore the crucial aspect of business experience
What is opportunity cost
The potential loss the business would make when choosing one decision over another
What is opportunity cost
The potential loss the business would make when choosing one decision over another
Decision trees structure
quantitative skill:
SQUARE = decision to be made
CIRCLES = possible outcomes
What is expected value and how is it calculated
The financial value of an outcome calculated by multiplying the financial result by its probability
What is expected value and how is it calculated
The financial value of an outcome calculated by multiplying the financial result by its probability
What is the net gain
The value to be gained from taking a decision.
Adding all the EV of each outcome and deducting the costs associated with the decision.
what is a stakeholder
an individual that has a vested interest in the activities and decision making of a business.
