Topic 2 - Managers, Leadership and Decision Making Flashcards
What do managers do
Set objectives - clear ides of what to achieve Analyse - conditions business face - performance of staff - how objectives are met Lead - inspiring employees Making decisions Reviewing
What is a autocratic manager
Tell employees what to do
Don’t listen to employees
Top down communication
What is a democratic leader
Involve workers in decisions
What is laissez faire management
Don’t tell junior staff what to do
What is paternalistic leadership
Thinks and acts like a father
What are the two axis on blake moutons grid
Concern for people
Concern for performance
What are the names of the leadership types on Blake moutons grid
- team management
- produce or perish
- middle of the road
- country club
- impoverished
Describe team leadership
- values task completion and people
- interest and trust in staff
Describe produce or perish leadership
- staff are resources
- financial drive to succeed
- autocratic leadership
- good staff likely to leave
Describe middle of the road leadership
- struggle to succeed at either
- don’t gain an advantage
Describe country club leadership
- lack of urgency to get things done
- poor productivity
Describe impoverished leadership
- Laissez faire
- no concern for people or task
- businesses don’t succeed
Left of Tannenbaum and Schmidt continuum
- managers have full authority and decision making power
- autocratic
Right of Tannenbaum and Schmidt continuum
- employees are given authority and decision making power
Different types of leadership on the continuum
Tell
Sell
Consult
Delegate
Influences on management and leadership styles and effectiveness of styles
- state of emergency style may need to become autocratic
- skills of employees
- external environment
What is scientific decision making
Decision making using data
Advantages of scientific decision making
- reduce risks
- provides guidance when managers have lack of experience
Disadvantages of scientific decision making
- time consuming
- experience and expertise of staff not considered
- data may be unreliable
What is intuition in decision making
Judgement made on experience and strength of understanding
What factors influence scientific decision making
- availability and reliability of data
- managers experience
- risk a business is willing to accept
Influences on decision making
Mission - decisions should be made to help achieve the mission Objectives Ethics External environment Resource constraints Reward for managers Opportunity costs
What are the advantages of decision trees
- allows for uncertainty
- ensures managers consider alternative outcomes
- set out problems clearly and encourage a logical approach
- encourage a quantitative approach
- show average expected value
- useful in tactical or routine decisions
Disadvantages of decision trees
- biased
- difficult to get data
- less useful in new problems
- easy to manipulate
- don’t take into account variability
- may divert away from qualitative
Opportunity cost
The impact of choosing one project instead of another
Advantages of intuition decision making
- experience and intuition is accurate
- quicker
- less resources needed
Disadvantages of decision making
- mistakes can be made
- decisions may be made for illogical reasons
What are the axis on stakeholder mapping
POWER
INTEREST
High high stakeholder mapping
Engage closely
High power Low interest stakeholder mapping
Keep satisfied
Low power Low interest stakeholder power
Monitor
High interest Low power
Keep informed
The need to consider stakeholder needs when making decisions
- stop resistance for decisions
- keeps pressure groups satisfied
- prevent negative press
Overlapping stakeholder needs
Technological advances - Shareholders, managers and customers Recession - shareholders and managers Inflation - shareholders and managers
Conflicting needs of stakeholders
Technological advance - managers and employees Recession - managers and suppliers - employees and customers Inflation - Managers and employees - managers and suppliers - managers and retailers
Influences on relationships on stakeholders
- financial pressure
- the labour market
- personal convictions
What is consultation
Investigate the views and feelings of stakeholders so they feel involved in any decision made by the business
What is communication
Share information with stakeholders through emails and newsletters
