Unit 2 Flashcards
What are the roles of Managers?
-Setting Objectives
-Analysing
-Leading
-Making Decisions
-Reviewing
Internal Factors that influence Leadership styles
-Experience/expertise of the workforce
-Skills required for work to be done
-Personal traits of leader
-Power given to leader
External Factors that influence Leadership styles
-Political/legal environment
-Economic environment
-Social environment
-Technological environment
-Changing nature of industry
Types of Leadership
-Autocratic-authority
-Democratic-consulting
-Laissez faire-‘to leave alone’
-Paternalistic-fatherly manner
-Bureaucratic-‘by the book’
Two theories for management and leadership styles
-Tannenbaum Schmidt Continuum
-Blake Mouton Grid
4 Categories of leadership from the Tannenbaum Schmidt Continuum
-Sells
-Tells
-Consults
-Participates
5 Leadership styles from Blake Mouton Grid
-Impoverished Management (1,1)
-Country Club Management (1,9)
-Organisation Man Management (5,5)
-Authority Obedience (9,1)
-Team Management (9,9)
What does leadership mean?
ability to influence and direct people in order to meet the group’s goals
What does Management mean?
process through which company resources are used and decisions made in order to meet objectives of the firm
What’s Opportunity Cost?
The thing you give up in order to do something else
What’s the difference between risk and uncertainty?
both deal with unknowns
-Risk is a quantifiable uncertainty (probability)
-Uncertainty is impossible to quantify or add a probability
Pros and Cons of Scientific Decision making
Pros
- Quantifiable evidence
- Encourages logical thought process
Cons
- May be expensive
- Time consuming
Pros and Cons of intuitive decision making
Pros
-Allows for quick decision making
-Encourages innovation and creativity
Cons
-Difficult to justify
-Reliant on experience and expertise
How to calculate Expected Value (EV)?
multiply financial outcome by the probability for each chance
then add results together
What’s formula for Net Gain?
Expected Value-Costs
What are the strengths of decision trees?
-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
What are the weaknesses of decision trees?
-Relies heavily on estimates
-Doesn’t take into account qualitative factors
-Estimates may be biased
-May not consider external influences
-Non-dynamic
Influences on decision making?
INTERNAL
-Mission
-Objectives
-Ethics
-Resources
EXTERNAL
-Competition
What’s the meaning of Stakeholders
Anyone with an interest in the business
Examples of Stakeholders
-Customers
-Employees
-Shareholders
-Government
-Community
-Suppliers
-Financial Institutions
What’s Stakeholder Mapping
Maps the relative power of stakeholder group against degree of interest
-Interest-(X-Axis)
-Power-(Y-Axis)
Influences on relationship with stakeholders?
- Leadership style
- Mission and objectives
- Stakeholder power and interest
- Market condition
- External influences (legislation)
- Business Form
Ways to manage relationships with different stakeholders
-Communication
-Consultation
