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
