Unit 2

Question 1

What are the roles of Managers?

Answer 1

-Setting Objectives
-Analysing
-Leading
-Making Decisions
-Reviewing

Question 2

Internal Factors that influence Leadership styles

Answer 2

-Experience/expertise of the workforce
-Skills required for work to be done
-Personal traits of leader
-Power given to leader

Question 3

External Factors that influence Leadership styles

Answer 3

-Political/legal environment
-Economic environment
-Social environment
-Technological environment
-Changing nature of industry

Question 4

Types of Leadership

Answer 4

-Autocratic-authority
-Democratic-consulting
-Laissez faire-‘to leave alone’
-Paternalistic-fatherly manner
-Bureaucratic-‘by the book’

Question 5

Two theories for management and leadership styles

Answer 5

-Tannenbaum Schmidt Continuum
-Blake Mouton Grid

Question 6

4 Categories of leadership from the Tannenbaum Schmidt Continuum

Answer 6

-Sells
-Tells
-Consults
-Participates

Question 7

5 Leadership styles from Blake Mouton Grid

Answer 7

-Impoverished Management (1,1)
-Country Club Management (1,9)
-Organisation Man Management (5,5)
-Authority Obedience (9,1)
-Team Management (9,9)

Question 8

What does leadership mean?

Answer 8

ability to influence and direct people in order to meet the group’s goals

Question 9

What does Management mean?

Answer 9

process through which company resources are used and decisions made in order to meet objectives of the firm

Question 10

What’s Opportunity Cost?

Answer 10

The thing you give up in order to do something else

Question 11

What’s the difference between risk and uncertainty?

Answer 11

both deal with unknowns
-Risk is a quantifiable uncertainty (probability)
-Uncertainty is impossible to quantify or add a probability

Question 12

Pros and Cons of Scientific Decision making

Answer 12

Pros
- Quantifiable evidence
- Encourages logical thought process

Cons
- May be expensive
- Time consuming

Question 13

Pros and Cons of intuitive decision making

Answer 13

Pros
-Allows for quick decision making
-Encourages innovation and creativity

Cons
-Difficult to justify
-Reliant on experience and expertise

Question 14

How to calculate Expected Value (EV)?

Answer 14

multiply financial outcome by the probability for each chance
then add results together

Question 15

What’s formula for Net Gain?

Answer 15

Expected Value-Costs

Question 16

What are the strengths of decision trees?

Answer 16

-Clearly show available option
-Encourages logical thinking
-Takes risk into account
-Allows structure discussions and comparisons
-Potentially raise alternative options
-Quantifies outcome of each decision
-Highlights likelihood of each outcome

Question 17

What are the weaknesses of decision trees?

Answer 17

-Relies heavily on estimates
-Doesn’t take into account qualitative factors
-Estimates may be biased
-May not consider external influences
-Non-dynamic

Question 18

Influences on decision making?

Answer 18

INTERNAL
-Mission
-Objectives
-Ethics
-Resources

EXTERNAL
-Competition

Question 19

What’s the meaning of Stakeholders

Answer 19

Anyone with an interest in the business

Question 20

Examples of Stakeholders

Answer 20

-Customers
-Employees
-Shareholders
-Government
-Community
-Suppliers
-Financial Institutions

Question 21

What’s Stakeholder Mapping

Answer 21

Maps the relative power of stakeholder group against degree of interest

-Interest-(X-Axis)
-Power-(Y-Axis)

Question 22

Influences on relationship with stakeholders?

Answer 22

• Leadership style
• Mission and objectives
• Stakeholder power and interest
• Market condition
• External influences (legislation)
• Business Form

Question 23

Ways to manage relationships with different stakeholders

Answer 23

-Communication
-Consultation