Unit 2

Question 1

Explain the role of a manager

Answer 1

Set objectives
Organize
Motivate
Communicate
Measure performance
Develop subordinates

Question 2

Identify the types of leadership styles?

Answer 2

Autocratic
Democratic
Laissez faire

Question 3

Explain the characteristics of the different leadership styles

Answer 3

Autocratic leader - makes decisions without consulting others, poor relationship with workforce, usually works with unskilled employees requiring a lot of supervision.

Democratic leader - manager makes final decisions but includes others’ ideas in the process, softer form of autocratic, positive motivator, good relationship with workforce, delegate responsibilities, good communicator.

Laissez faire leader - allows team members to have complete freedom, rarely interfere, weak form of leadership, only appropriate for a small, highly motivated team of able workers.

Question 4

Identify the diagram that illustrates the range of leadership behaviour

Answer 4

Tannenbaum and schmidt continuum

Blake Mouton

Question 5

Explain the Tannenbaum and Schmidt continuum

Answer 5

Tell (autocratic)
Sell
Suggest (democratic)
Consult (democratic)
Join
Delegate (laissez faire)

Question 6

Explain the Blake Mouton grid

Answer 6

y axis = concern for people
x axis = concern for task

Country club = 1.9
Impoverished = 1.1
Middle of the road = 5.5
Task management = 9.1
Team management = 9.9

Question 7

What factors influence the method of leadership style being adopted

Answer 7

The individual - want to feel in control or comfortable with discussing decisions, depends on leaders personality and skills.

Nature of the industry - some industries require a high degree of creativity.

Business culture - business may have traditions of doing things in a certain way, change might be controversial.

Question 8

Explain what is meant by scientific decision making?

Answer 8

Making a decision based on data

Question 9

Explain what is meant by opportunity cost

Answer 9

The cost of the next best alternative; its whats given up, one or the other

Question 10

Explain what is meant by making a decision based off intuition?

Answer 10

Making a decision based on a gut feeling rather than on data or analysis

Question 11

Explain the function of a decision tree?

Answer 11

A diagram portraying multiple options that can be chosen where outcomes are uncertain. An estimate of the risk, reward and value of each option is included.

Question 12

Identify a drawback of using a decision tree?

Answer 12

All estimated figures

Question 13

Identify in which situations the leadership styles would be beneficial

Answer 13

Autocratic: when quick decisions are required
Democratic: complexed decisions requiring specific skills
Laissez Faire: encourage production of highly creative workforce

Question 14

Identify the advantages and disadvantages of a democratic leader

Answer 14

+ Increased variety of ideas could improve quality
- Decision are slow and conflict could occur regarding what the ‘best’ decision is.

Question 15

Identify the advantages and disadvantages of an autocratic leader

Answer 15

+ Decisions and direction of business is consistent
- Subordinates are highly dependant on leader, morale could suffer

Question 16

Identify the advantages and disadvantages of a Laissez faire leader

Answer 16

+ Brings quality work out of creative groups
- Lack of direction/focus

Question 17

Identify what information needs to be labeled on a decision tree?

Answer 17

Cost (of each option)
Outcomes
Probabilities

Question 18

Identify and explain what factors influence decision making

Answer 18

Mission/objectives: decision will be guided by set objectives.

Ethics: morally correct decisions

External environment: interest rates/economy

Competition: some decisions made to respond to competitors actions

Resource constraint: is the business physically able to do it

Question 18

Identify and explain what factors influence decision making

Answer 18

Mission/objectives: decision will be guided by set objectives.

Ethics: morally correct decisions

External environment: interest rates/economy

Question 19

Explain the term ‘stakeholder’ and provide examples

Answer 19

People or organisations who have an interest in a business e.g. customers, employees, suppliers, local community, managers

Question 20

How is stakeholder mapping visually portrayed?

Answer 20

Mendelow mix is a grid which identifies how much interest and power a stakeholder has over a business.

Question 21

What does Mendelow’s stakeholder map consider (the factors on the axes)

Answer 21

Stakeholder power and interest over the business

Question 22

Describe Mendelow’s stakeholder map

Answer 22

Keep satisfied - high power low interest
Manage closely - high power high interest
Keep informed - low power high interest
Monitor - low power low interest

Question 23

Identify what stakeholder would be classed as ‘manage closely’ in terms of a stakeholder analysis

Answer 23

Shareholder - high power high interest

Question 24

Identify what stakeholder would be classed as ‘keep satisfied’ in terms of a stakeholder analysis

Answer 24

Local media

Question 25

Identify what stakeholder would be classed as ‘keep informed’ in terms of a stakeholder analysis

Answer 25

Customers, employees, suppliers

Question 26

What business decisions could cause conflict amongst stakeholders?

Answer 26

Relocate overseas
Introduce new technology
Expansion
Increase price
Cut costs
Enter new market

Question 27

Describe the term ‘pressure group’

Answer 27

A group of people who’s aim is to influence the decisions a business make