unit 2

Question 1

role of managers

Answer 1

• setting objectives
  targets to be achieved
• analysing
  business performance
• leading
  motivating subordinates to achieve goals
• making decisions
  allocation of resources
  day to day running of business
• reviewing
  monitoring performance abasing
  objectives
  taking action as necessary

Question 2

interpretation of leadership

Answer 2

a relationship through which one person influences the behaviour or actions of other people

Question 3

why is leadership increasingly important in business

Answer 3

• changing organisational structures
  flatter + greater delegation
  teamwork + focus on quality
  assurance
  coaching + support
• rapid changing
  change is becoming a constant feature
  soft skills of leadership
  management increasingly important

Question 4

leaders

Answer 4

inspire people, build relationships, take risks, have followers

Question 5

managers

Answer 5

enact the plan, use their authority, manage risks, have subordinates

Question 6

what is a leadership style

Answer 6

the way that the functions of leadership are carried out
the way that a leader behaves

Question 7

authoritarian leadership

Answer 7

power is with manager
communication is top-down
Forman system of command + control
use of rewards + penalties
very little delegation

Question 8

paternalistic leadership

Answer 8

leader decides what’s bets for employees
addressing employees needs
little delegation
softer form of authoritarian leadership

Question 9

democratic leadership

Answer 9

power is with the group
leadership functions shared with group
employees have more involvement
emphasis on delegation
better moral

Question 10

laissez-faire

Answer 10

leader has little input
conscious decisions to delegate power
managers/employees have freedom in what’s best
effective when staff are ready and willing to take responsibility

Question 11

theory x managers

Answer 11

assume average worker is lazy and dislikes work, workers need to be controlled & directed,

Question 12

theory y managers

Answer 12

assume most people enjoy work, workers will take responsibility and organised themselves

Question 13

manager defintion

Answer 13

A manager tends to focus on controlling resources and optimising processes

Question 14

leadership definition

Answer 14

while a leader focuses on inspiring and empowering people to work together towards a common goal

Question 15

senior management

Answer 15

board of directors
set corporate objectives
board responsible for shareholders

Question 16

middle management

Answer 16

accountable to senior management
run business functions and departments

Question 17

junior management

Answer 17

supervisory role, accountable to middle management
monitor & control day to day tasks and manage team workers

Question 18

four stages of tannenbaum and Schmidt

Answer 18

tell, sell, consult, joins

Question 19

tells (tannenbaum and Schmidt)

Answer 19

leader indentifies problems, makes decision and announces to subordinates; expects implementation

Question 20

sells (tannenbaum and Schmidt)

Answer 20

leader still makes decisions, but attempts to overcome resistance through discussion & persuasion

Question 21

consults (tannenbaum and Schmidt)

Answer 21

leader identifies problem and presents it to group. listens for advice and suggestions before final decision

Question 22

joins (tannenbaum and Schmidt)

Answer 22

leader define the problem and passes on the solving & decision-making to the group

Question 23

factors affecting leadership

Answer 23

size, structure
feelings
moral
personality

Question 24

what’s hunch

Answer 24

key benefits-quick
based on intuition, gut feel and experience
but hard to justify for business decision involving significant risk

Question 25

what’s scientific

Answer 25

based on data and analysis
downsides; time consuming & costly; no guarantee of the right decision
increasingly common and automated, supported by big data and data analytics

Question 26

6 factors of STEP

Answer 26

set objective, gather data, analyse data, make decision, implement decision, review decision

Question 27

examples of data being an important role in decision making

Answer 27

market research, inventory control, capacity management

Question 28

PESTLE

Answer 28

political
economic
social
technological
legal
environmental

Question 29

what is a decision tree

Answer 29

a mathematical model
help managers make decisions
estimates probabilities for outcomes

Question 30

what is probability

Answer 30

chance of an outcome happening

Question 31

expected value

Answer 31

financial outcome of an outcome calculated by (estimated financial effect x probability)

Question 32

net gain

Answer 32

the value to be gained from taking a decision (expected value of each outcome - the costs with each decision)

Question 33

who are stakeholders

Answer 33

anyone with an interest in the actions of a business

Question 34

examples of stakeholders

Answer 34

customers
employees
shareholders
government
community
suppliers
financial institutions

Question 35

what to do if the stakeholder is low and low

Answer 35

monitor

Question 36

what to do if the stakeholder is low and high

Answer 36

keep satisfied

Question 37

what to do if the stakeholder is high and high

Answer 37

manage closely

Question 38

what to do if the stakeholder is low and high

Answer 38

keep informed

Question 39

influences in the relationship with stakeholders

Answer 39

leadership
mission and objectives
stakeholder power and interest
market conditions (competition)
business form

Question 40

how to manage the relationship with different stakeholders

Answer 40

communication
consolation