topic 2- managers, leadership, decesion making Flashcards
what is a managers job ?
to set objectives and decide how to go about meeting the objectives
what is management ?
the process about deciding what resources are necessary for the objectives to be met
what is the 6 roles of the managers ?
- set objectives
- analysis the business performance
- leading
-decision making - reviewing
- appraisal
what do the managers do when setting objectives ?
- they want to make sure they have been achieves
- decide what resources are necessary to achieve them
- use for business, teams and individuals
what do managers do when analysing the business performance ?
- use data and figures
- make sure they continue to work towards meeting the objectives
what do managers do when leading the business ?
- communicate the objectives and direct how to achieve the goals to the subordinates
what do managers do when making decisions ?
- use data analysis and interpretation to make decisions
- allocate resources
- day by day running the business
what do managers do when reviewing the business ?
- monitor the performance against the objectives
- take action where it is necessary
- see how effective the past decisions where and then make further decisions based on conclusions of the previous decision
what do managers do when using appraisal in the business ?
- develop the subordinates talents
- outline their strengths and weakness
what is a leader ?
people that can inspire and motivate people to meet their objectives
what is leadership ?
the ability to influence and direct people in order to meet the goals of the group
what are the 2 theories about leaders ?
- trait
- behavioural
what is trait theory ?
the theory is developed from the concept of an charismatic individual
- the identifiable characterises which set leaders from the ordinary
what is 4 examples of identifiable characteristics of leaders ?
- communication
- resilience
- organization
- determination
why is trait theory on decline ?
as successful leaders don’t always have the specific characteristics
what is the behavioural theory ?
focus on how an individual leader behaves
- these can be taught
what are the 5 leadership styles ?
- autocratic
- paternalistic
- bureaucratic
- laissez- faire
- democratic
what is an autocratic leadership style ?
managers will make the decision without consulting the workforce
- identifies objectives and say how exactly they should be achieved
- requires supervising
what negative affect does an autocratic leadership style have on the workforce ?
it demotes on the intelligence of the workers
when is an autocratic leadership style useful ?
when the workforce is unskilled and in major management
what is a democratic leadership style ?
they discuss the issues with the workforce and then delegate the responsibility
- consult the team but leaders make the final decision
what does having a democratic leadership style show ?
- they’ve a lot of confidence in the workers so this can increase motivation
what do leaders need if they’re using a democratic leadership style ?
good communication
what is the benefit of using a democratic leadership style ?
reduces the weight of the decision on the leaders
what is the laissez-faire leadership style ?
the leader allows the team to make decisions
- weak form of leadership
- might offer employees coaching and support
- the leaders rarely intervene
what is a benefit to the laissez-faire leadership style ?
gives experienced and competent staff freedom to make a decision
when is using a laissez-faire leadership style appropriate ?
for small and highly motivated team of qualified and able workers
what is a paternalistic leadership style ?
when leaders act in a fatherly way towards the workforce
- they consult and explain the decisions to persuade the decision is in their best interests
what does a paternalistic leadership style make decisions based on ?
the needs of the workforce and business
how does a paternalistic leadership style motivate their staff ?
by caring for staff
when is a paternalistic leadership style appropriate ?
small or family run organisations as more a caring leadership
what is a bureaucratic leadership style ?
when the leaders work to the rules and regulations as they’re ‘by the book’ working
- nature of the business is very much ran by rules
what is the Tannenbaum Schmidt continuum for ?
puts the different leadership style on a scale through increasing levels pf participation in decision making by the workforce
what are the 4 key types in the Tannenbaum Schmidt continuum ?
- tells
- sells
- consults
- joins
what is a tells leadership style ?
leaders make the decision themselves with zero involvement of the workforce
- don’t trust the employees
- authoritarian
what does a tells leadership style create ?
creates a division between the management and workforce
what is a sells leadership style ?
leaders that makes the decision but tries to present it to the workforce with persuasion
- the workforce can ask questions but don’t influence the decision
what does the sells leadership style try and overcome ?
resistance from the workforce
what is a consults leadership style ?
the leader proposes a problem and a tentative decision and then invites the workforce to discuss
- they listen to advice and suggestions before making the final decision
- decision is open to be modified
what does a consults leadership style value ?
the workforces participation
what is a joins leadership style ?
the leaders define the problem then they pass it off to the subordinates to solve and make a decision
- but ultimately leader makes the final decision
what is a benefit of the joins leadership style ?
helps the manger make the decision
what is useful when using the joins leadership style ?
if the workforce have specific knowledge
what is effectiveness ?
the ability of a business to achieve its objectives
what are the internal factors that influence leadership styles ?
- skills requires
- expertise/ experience of workforce
- personal traits of the leader
- time frame the decision needs to be completed in
what are the external factors that influence leadership styles ?
- political
- economic
- social
- technological
- legislation
- environmental/ ethical
- competition
what are 2 types of decision making ?
-tactical
- strategic
what is tactical decision making ?
is short term and day to day decisions
- fewer resources used
- easier to reverse
- usually taken by junior managers
what is strategic decision making ?
long term decisions made for the future
- usually taken my senior managers
- difficult to reverse
what are 2 ways to base a decision ?
- scientific
- intuitive
what is a scientific decision ?
decision based on data which is quantifiable evidence supported
- you compare the outcomes with the objectives
what is 2 strengths to scientific decision making ?
- reduces the risk of making expensive mistakes
- logical and structured approach which can be adapted if necessary
what are 3 weaknesses to scientific decision making ?
- may require expensive data
- time consuming as collecting and analysing a lot of data
- cant have the decision on biased data so need to be careful if the data is out of date
what is intuitive decision making ?
making decisions quickly based on instincts
- encourages innovation and creativity
- some managers have good intuition based on past experiences
what are 2 strengths for intuitive decision making ?
if right can keep a business ahead of competition
- done quickly and if a new/ unfamiliar situation then there may not be any data for it or helpful
what are the 4 weaknesses to intuitive decision making ?
- risks to rely on as people make mistakes
- can be irrational and not biased on logic
- difficult to justify
- reliant on expertise/ experience which managers may not have
what are 4 things that are part of decisions ?
- risks
- uncertainty
- reward
- opportunity cost
what is a risk ?
a chance of incurring mistakes or loss
- it is measurable
eg) investments
why do risks influence a business decision they make ?
- all business take risks and some can be high but can give a reward if highly successful
- business try to reduce them
what is an uncertainty ?
a situation where there is a lack of knowledge and the events consequences are unpredictable
- it is not measurable
- all decisions at some degree have this
eg) Brexit, war
what decisions method can help reduce uncertainty ?
scientific decision making
what is a reward ?
where all managers expect decisions to bring rewards
- can be financial or beneficial rewards
what is opportunity cost ?
the value of one decision in terms of the next best thing is given up
- time and money spent on 1 thing is likely to mean missing out on something else
- all decisions have this
what does opportunity cost place on a decision ?
value
why do decisions always have opportunity cost ?
as business have limited resources so need to determine how to use them
what do all decisions carry ?
risks and rewards as well as being based on uncertainties
what 5 things influence the decisions as whole ?
- mission
- objectives
- ethics
- external environmental
- resource constraints
how does a mission influence decisions ?
need to take them into account
how does objectives influence decisions ?
- decisions made to aim to achieve these objectives
- decisions are reviewed against the objectives to measure their success
how does ethics influence the decisions made ?
all business have different ethics and they need to be included
how does external environment influence decisions ?
all the outside factors need to be taken in
how does resource constraints influence decisions ?
- resource availability is a factor
- business wont want to advertise a shortage in some of their resources
what are 4 examples of resources for a business ?
- money
- people
- time
- raw materials
what are decisions trees used for ?
to show which course of action is probably the best
what do the business know and not know when making a decisions ?
they know the cost but can’t know the outcome for certain
what is probability ?
likelihood of something occurring
what is expected value ?
probability of outcome occurring multiplied by the pay-off a business can get
what is the net gain ?
the financial gain after initial costs
what is the square on a decision tree ?
decisions to be made
what is the circle on a decision tree ?
alternative outcome
what is the decimal on the lines on a decision tree ?
probabilities of each outcome occurring
what is the values in £ on a decision tree ?
pay-off for business if the outcome happens
what is 7 advantages for decisions trees ?
- clearly shows options
- encourages logical thinking
- allows structure, discussion and comparisons
- takes risks into account
- may raise alternative options
- visual representation
- use quantitative and objectively data
what are 4 disadvantages to decision trees ?
- relies heavily on estimates
- doesn’t take into account the qualitative factors so no opinions included
- estimates may be biased so flawed estimation
- very hard to predict the probabilities accurately
