unit 2 Flashcards
what are the roles of managers
Leading- setting targets to be achieved
analysing- factors contributing to performance
making decisions- allocating resources.
reviewing- monitoring performance
why has leadership become increasingly important in a business
changing organisational structure:
Flatter + greater delegation
coaching support and empowerment
teamwork
rapid change:
change is becoming a constant feature of business life
soft skills
what is a leadership style
The way that the functions of leadership are carried out
The way that a leader behaves
authoritarian leadership
paternalistic leadership
democratic leadership
laissez-faire leadership
what are the two types of manager
what are the factors affecting leadership style
-personal value systems
-type of organisation
-pressure
-trust in employees
-feelings of security
-experience
what is hunch
based on intuition and gut feeling- involves a significant risk.
what is the circle in a decision tree called
a node
what is a decision tree
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,
what is probability
The percentage chance or possibility that an event will occur. Total must add up to 1.
what is expected value and how can it be calculated
The financial value of an outcome calculated by multiplying the estimated financial effect by its probability
what are stakeholders
anyone with an interest in the actions of a business.
examples of stakeholders
customers
employees
shareholders
government
community
suppliers
financial institutions.
what is the difference between a risk and an uncertainties
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
what is specific decision making
involves making a decisions based on evidence and adopting a systematic approach, rather than intuition, hunch or ‘gut reaction’
why are stakeholders important when making decisions
stakeholders needs should be considered
helps to avoid resilience to change
why do business use stakeholder mapping when making decisions.
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.
how can stakeholders be categorised
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
on a stakeholder map what are on the axis
x axis power
y axis level of interest
how can stakeholders increase there power
join together e.g the community may support employees
what are the influences on the relationship with stakeholders
Leadership style
mission and objectives
stakeholders power and interest
market conditions including competitions
external influences
how can you manage the relationship with different stakeholders
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
what is a decision tree
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
what is net gain and how can it be calculated
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
what are the advantages of using a decision tree
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
what are the disadvantages of using decision trees
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
what is labour intensity
production relies on using labour resources
what is capital intensive
production relies on using capital resources
examples of labour intensive
hairdressers
food processing
coal mining
examples of capital intensive
car manufacturing
oil extracting
what are the implications of resource intensity for unit costs for both labour intensive and capital intensive
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
what are operations management
the management of processes, activities and decisions relating to the way goods and services are produced and delivered
what is the transformation process
describes what happens inside the business, where value is added
what are the key types of operational objectives
cost and value
quality
efficiency and flexibility
environmental
