unit 2

Question 1

what are the roles of managers

Answer 1

Leading- setting targets to be achieved
analysing- factors contributing to performance
making decisions- allocating resources.
reviewing- monitoring performance

Question 2

why has leadership become increasingly important in a business

Answer 2

changing organisational structure:
Flatter + greater delegation
coaching support and empowerment
teamwork
rapid change:
change is becoming a constant feature of business life
soft skills

Question 3

what is a leadership style

Answer 3

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

Question 4

authoritarian leadership

Question 5

paternalistic leadership

Question 6

democratic leadership

Question 7

laissez-faire leadership

Question 8

what are the two types of manager

Question 9

what are the factors affecting leadership style

Answer 9

-personal value systems
-type of organisation
-pressure
-trust in employees
-feelings of security
-experience

Question 10

what is hunch

Answer 10

based on intuition and gut feeling- involves a significant risk.

Question 11

what is the circle in a decision tree called

Answer 11

a node

Question 12

what is a decision tree

Answer 12

A mathematical model, used to help managers make decisions. Estimates probabilities to calculate likely outcomes. Also help do decide whether the net gain from a decision is worthwhile,

Question 13

what is probability

Answer 13

The percentage chance or possibility that an event will occur. Total must add up to 1.

Question 14

what is expected value and how can it be calculated

Answer 14

The financial value of an outcome calculated by multiplying the estimated financial effect by its probability

Question 15

what are stakeholders

Answer 15

anyone with an interest in the actions of a business.

Question 16

examples of stakeholders

Answer 16

customers
employees
shareholders
government
community
suppliers
financial institutions.

Question 17

what is the difference between a risk and an uncertainties

Answer 17

a risk is possible to add a probability to quantify the degree of risk, whereas with uncertainties you cannot

risks are measured, uncertainties are not

Question 18

what is specific decision making

Answer 18

involves making a decisions based on evidence and adopting a systematic approach, rather than intuition, hunch or ‘gut reaction’

Question 19

why are stakeholders important when making decisions

Answer 19

stakeholders needs should be considered

helps to avoid resilience to change

Question 20

why do business use stakeholder mapping when making decisions.

Answer 20

maps the relative power of each stakeholder group against the degree of interests.

this helps to inform managers on how important each stakeholder group is and therefore how involved they should be in the decision making process.

Question 21

how can stakeholders be categorised

Answer 21

internal- external
primary-secondary

primary stakeholders have a direct relationship with the business whereas secondary stakeholders although affected by the actions of a business are not directly related to the business

Question 22

on a stakeholder map what are on the axis

Answer 22

x axis power
y axis level of interest

Question 23

how can stakeholders increase there power

Answer 23

join together e.g the community may support employees

Question 24

what are the influences on the relationship with stakeholders

Answer 24

Leadership style
mission and objectives
stakeholders power and interest
market conditions including competitions
external influences

Question 25

how can you manage the relationship with different stakeholders

Answer 25

communication- keep informed, two way as well as one way, involve third parties.g trade unions

consultation- share proposals and seek opinions early in the decision making process

Question 26

what is a decision tree

Answer 26

A mathematical model
used to help manager make decisions
uses estimates and probabilities to calculate likely outcomes
helps top decide whether the net gain from a decision is worthwhile

Question 27

what is net gain and how can it be calculated

Answer 27

The value to be gained from taking a decision. Calculated by adding together the expected value of each outcome and deducting the costs associated with the decision

Question 28

what are the advantages of using a decision tree

Answer 28

choices are set out in a logical way
-potential option and choices are considered at the same time
-use of probabilities enables risk of the options to be addressed
likely costs considered swell as benefits

Question 29

what are the disadvantages of using decision trees

Answer 29

probabilities are just estimates- always prone to errors
uses quantitive data only- ignores qualitative aspects of decisions
assignment of probabilities and expected value prone to bias

Question 30

what is labour intensity

Answer 30

production relies on using labour resources

Question 31

what is capital intensive

Answer 31

production relies on using capital resources

Question 32

examples of labour intensive

Answer 32

hairdressers
food processing
coal mining

Question 33

examples of capital intensive

Answer 33

car manufacturing
oil extracting

Question 34

what are the implications of resource intensity for unit costs for both labour intensive and capital intensive

Answer 34

labour- labour costs higher than capital costs
costs are mainly variable= lower breakeven output

capital- capital costs higher than labour costs

costs are mainly fixed= higher breakeven output

Question 35

what are operations management

Answer 35

the management of processes, activities and decisions relating to the way goods and services are produced and delivered

Question 36

what is the transformation process

Answer 36

describes what happens inside the business, where value is added

Question 37

what are the key types of operational objectives

Answer 37

cost and value
quality
efficiency and flexibility
environmental