Unit 2 Flashcards
leadership (not on it)
includes the functions of ruling, guiding + inspiring other people within an organisation in pursuit of agreed objectives
management (not on it)
is planning, organising, directing + controlling all of part of a business enterprise
Blake Mouton grid (not on it)
concern for people vs concern for production
- country club leadership -> high focus on people vs low concern for production
- produce leadership -> great emphasis on task (authoritarian), no regard for employees
- impoverished leadership -> low concern for task + people = ineffective
- middle of the road -> some concern for people + task = average performance
- team leadership -> high concern for people + task = democratic
Tannenbaum-Schmidt continuum (not on it)
tell -> sell -> consult -> joins
autocratic -> paternalistic -> democratic -> laissez faire
autocratic leadership (not on it)
- one way communication
- minimal delegation or decentralisation
- close supervision of employees
appropriate when: in an emergency, when loads of employees
democratic leadership (not on it)
- leader delegates a great deal + encourages decentralisation
- discuss issues + employee participation is encourage
- employees are empowered + have greater control
eg Richard Branson
laissez-faire leadership (not on it)
- workers have more control over their activities
- self motivated + empowered
- highly skilled workers
influences of style of management (not on it)
- tradition + history of the business
- type of labour force
- nature of task + timescale
- personality of manager
strategic decisions (not on it)
- long term
- involves large commitment of resources
- usually taken by senior management
tactical decisions (not on it)
- short term
- fewer resources involved
- usually taken by junior management
risk (not on it)
the chance of incurring misfortune
high risk may = high rewards
-> scientific decision making can help
uncertainty (not on it)
situation where there is lack of knowledge of outcome
-> scientific decision making can help
opportunity cost (not on it)
the next best alternative foregone
- > benefit that’s given up in order to do something else
- > money + time spent doing on thing is likely to mean missing out on something else
scientific decision making (not on it)
based on data + uses logical approach
-> systematic approach eg decision trees
+ reduces risk, removes some subjective judgement
- costly + time consuming, doesn’t guarantee correct decision
intuitive decision making (not on it)
managers use instinct + hunch to make decisions
+ quick, data may not be useful if situation is new
- risky as people can make mistakes, may be irrational
probability (not on it)
the chance of a particular event occurring
expected values (not on it)
financial outcomes from a specific course of act adjusted to allow for probability of it occurring
net gains (not on it)
expected values of a course of action - the costs associated
-> managers should chose the one with the highest
influences on decision making (not on it)
- mission + objectives
- ethics
- risk involved
- external environment
- resource constraints
social responsibility
the duties a business has towards stakeholder groups
primary stakeholders
employees, creditors, customers
secondary stakeholders
government + suppliers
stakeholder map
minimal effort: low power, low interest -> occasional customers, suppliers of low value materials
keep informed: low power, high interest -> local community
keep satisfied: high power, low interest -> major shareholders of plc (interested in profits)
key players: high power, high interest -> major shareholders of ltd, highly skilled + valued employees, vital suppliers
influences in the relationships of stakeholders
- business objectives
- management style
- size + ownership of business
- market conditions
- power of stakeholder group
consultations
is a process by which one groups discovers the views of one another
partnership
stakeholder most close to decision or project.
may mean decision is taken jointly
participation
is lesser form of partnership, will take part in decision b
push communications
form of engagement -> entails one way communication
pull communications
only if they choose to engage with the business + access the communications
internal stakeholders
shareholders -> high dividends + share price
employees -> job security, wage
external stakeholders
customers -> high quality at low prices
suppliers -> fair price + on time
govt -> payments of taxes
local community -> creating jobs
