Topic 2- Managers Flashcards
What does leadership mean
Taking the initiative to set clear objectives and to motivate or guide staff towards their achievement
What does management mean
Organising and galvanising staff to implement the strategies needed to achieve the objectives
How can delegation by authority by democratic leaders be approached (2)
- management by objectives
- laissez-faire
What is a paternalistic leader (3)
- They think and act like a father
- they try to do what is best for the team
- interested in the security and social needs of staff
What are the 2 leadership behaviours that the “Blake/Mouton” grid looks at
1) concern for people
2) concern for performance
What is the blake/mouton grid
It is a model that highlights different management styles according to their focus on the task and the people within the business
What is a problem with the b/m grid
-it possibly implies that leadership styles are static e.g the boss can only maintain one leadership style
What is the Tannenbaum and Schmidt continuum
It is a model that highlights a range of different management styles suggesting that it was more dynamic
Strengths of the Tannenbaum and Schmidt continuum (2)
- leaders can change per different situations
- shows a range of leadership styles which managers can adapt to
What are tactical decisions
-they tend to be immediate/short term
Who are tactical decisions usually made by
Middle management
What are operational decisions
They relate to the day-to-day running of the business. They are mainly routine
Who are operational decisions usually made by
Middle or junior managers
What are strategic decisions
They are long term in their impact. They affect and shape the direction of the whole business
Who are strategic decisions usually made by
Senior managers
Influences on decision making (6)
- external environment
- mission
- resources
- ethics/ beliefs
- competition
- objectives
What is a decision tree
They are diagrams that set out all the options available when making a decision, plus an estimate of their likelihood of occurring
When can you use decision trees (2)
- when discussing important concepts in decision making such as choices, opportunity cost etc
- shows different outcomes
Decision trees (key terms)
Node
(Circle)- outcomes
Decision trees (key terms)
List out all 4 key terms
- node
- actual values
- expected values
- net gains
Advantages of decision trees (3)
- allow for uncertainty
- they make managers consider all possible outcomes
- encourages a quantitive approach
Disadvantages of decision trees (3)
- can be biased
- hard to get accurate date
- managers can manipulate data
What is an opportunity cost
The cost of missing out on the next best alternative when making a decision
Examples of opportunity costs (3)
- missing out on a regular salary (if setting up a business)
- lose family time and time in general
- benefits lost from investment spending
Factors influencing choice of business start up (3)
- cash requirements
- suitable skills
- suitable time
What are trade-offs
A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect
What are stakeholders
An individual or group that has an effect on and is affected by the activities of an organisation
Examples of internal stakeholders (3)
- workers
- owners (shareholders in a ltd)
- managers
Examples of external shareholders (3)
- suppliers
- government
- customers
- shareholders in a plc
Give the 4 aspects of shareholder mapping
- monitor
- keep informed
- keep satisfied
- manage closely
Advantages if shareholder mapping (4)
- it helps a business/ managers to set priorities when operating/ decision making
- may improve motivation
- saves time
- High communication
