Unit 2 Flashcards
Define delegation.
The allocation of tasks to other employees.
Define abdication.
Allocation of tasks.
Responsibility is passed on.
Define consultation.
Talking through/discussing matters with employees.
Define morale.
Motivation, confidence, work ethic and enthusiasm towards work.
What is the difference between management and leadership.
Leaders inspire people, build relationships, take risks and have followers.
Managers enact the plan, use authority so have subordinates and manage risks.
Name 3 characteristics of an Authoritarian manager.
Tells employees what to do.
Keeps control.
Doesn’t listen to staff, has own ideas.
What are the disadvantages of having an authoritarian leadership style?
Can demotivate capable employees.
Low employee retention.
Don’t benefit from the talent of the staff.
Describe a democratic leader.
Discusses problems with employees and listens ro advice.
Delegates responsibility.
What are the advantages of a democratic leadership style.
Staff feel more valued and therefore more motivated.
Better decision making as more ideas are taken on board.
What are the disadvantages of a democratic leadership style?
Decisions are made slower.
Conflict may occur.
Describe the paternalistic leadership style.
Builds relationships.
Consult employees before making decisions and then explains outcomes to them to persuade them - sell.
What are the advantages of a paternalistic leadership style.
High employee retention as opinions feel valued.
Open communication.
High morale.
Name 2 possible disadvantages to a paternalistic leadership style.
Power struggle if roles are not well defined.
Can demotivate when issues arise.
Describe the laissez-faire leadership style.
Lots of delegation.
Used when staff are very experienced.
May offer coaching and support but rarely interfere with running off business.
What are the advantages of a laissez-faire leader?
Utilises employee talent.
Creates respect for manager.
Increase motivation and autonomy.
What are the disadvantages of a laissez-faire leadership style?
May lack a sense of direction.
May lack coordination.
Name 6 possible influences on leadership style.
Time frame.
Nature of tasks - daily or new?
Skill level of the employees.
Personality and skill of the leader.
Company structure.
Economic status.
Explain how time frame may influence leadership style.
If a quick decision is needed then an autocratic style is best.
How could the nature of a task influence leadership style?
Repetitive tasks do not need close supervision.
So tasks can be delegated.
How could the skill level of employees affect leadership style?
If employees are highly skilled they will need less close supervision.
Explain how the personality of a leader may influence leadership style.
It is difficult to change leadership style.
Naturally autocratic leaders will struggle to delegate tasks and may micromanage.
How could the company structure influence leadership style.
A tall structure will have more layers and a more autocratic style.
What is on the left side of the Tannenbaum Schmidt continuum?
Boss centred leadership.
What is the label on the right side of the Tannenbaum Schmidt continuum?
Subordinate centred leadership.
Name the 4 main categories of the Tannenbaum Schmidt continuum.
Tell, sell, consult, share.
Define subordinate.
An employee who is lower in the hierarchy.
Define opportunity cost.
The benefit that is given up in order to do something else.
Define risk.
The chance that something could go wrong.
Define uncertainty.
A situation where there is a lack of knowledge and outcomes are unpredictable.
Define reward.
A beneficial outcome.
What is a scientific decision?
Gather data and analysing it before making a decision.
Both logical and rational.
What is a hunch decision?
Relying on instinct as to whether to make a particular decision.
Likely to rely on experience.
When is a scientific approach to decision making appropriate?
When there is a high degree of risk.
Unfamiliar situation.
When is hunch approach to decision making appropriate?
When the manager has a lot of experience.
Fears that the data is unreliable or it is inconclusive.
Quick decision needs to be made.
What are the limitations of scientific decision making?
Expensive and time consuming.
Quantitative data used - difficult to analyse meaning so may be misinterpreted.
Does not include external factors.
Name a limitation of hunch decision making.
May be bias.
Give one example of a hunch decision.
Employing people.
Give an example of a method of collecting data.
Loyalty cards allow businesses to collect data based on possible price changes, products etc.
What is the formula for expected value?
Expected outcome x probability.
What is the formula for net gains?
Expected value - initial cost.
What factors help to choose a decision?
Net gain.
Initial cost.
Risk/probability.
What are the advantages of using a decision tree?
Provides a visual representation.
Uses quantitative data.
Useful when a lot of data is available.
What are the disadvantages of using decision trees?
They’re based off of estimated data.
Doesn’t account for external factors/other outcomes.
Time consuming.
What are the two variables on a stakeholder map?
Level of interest and level of power.
What is the name of the low interest, low power section on a stakeholder map?
Minimal effort.
What are the 4 sections on a stakeholder map?
Minimal effort.
Keep informed.
Keep satisfied.
Key players.
Define stakeholders.
Someone with an interest in the business.
Describe partnership.
Decisions are made jointly by management team and stakeholders.
Responsibility is shared.
High power and high interest stakeholders.
Describe participation.
Stakeholder is part of the relevant team and involved in decision making.
Two way communication for the element in which they have responsibility.
Describe consultation as a method of managing relationships with stakeholders.
Find out views of stakeholders.
Stakeholders respond to questions.
Limited power to influence decisions.
May be invited to a meeting.
What are push communications.
One way communications.
E.g. email letter etc.
What are pull communications.
Business only communicates if they engage and access communication.
E.g. website.
Name 5 influences on decision making.
Missions and objectives.
Ethics.
Risk involved.
External environment e.g. competition, incomes.
Resource constraints/amount of resources to be invested.
Define a programmed decision.
Familiar situations with guidelines.
Define a non programmed decision.
Unfamiliar and often require a unique solution.
What is a strategic decision?
A long term decision that often involves a large commitment of resources and therefore are handled by senior management.
What is a tactical decision?
Days to day, short term decisions.
Easy to reverse so can be made by junior management.
When may an authoritarian management style be necessary?
When most workers are unskilled
When in crisis management.
How would the economy influence management style?
Stricter managers more suitable in recessions and difficult economic times as will issue quick commands with short decision making time.
How will mission and objectives affect decision making?
Decisions made must be in line with and lead towards success of mission/objectives.
Objectives will be used to measure the success of a decision.
How may ethics affect decision making?
Decisions will need to stay in line with ethical values e.g. environmental responsibility.
What environmental factors may affect decision making?
Competition - changing prices, gaining market share.
Trends - changes demand, seasonal demand.
Economy.
Environmental concerns.
Explain how resource availability may affect decision making.
Shortages of money, time, people and raw materials may make decisions for a business e.g. shortage of local labour means not planning to grow the business.
What communication is used with Hugh interest, low power stakeholders?
Keep informed.
What is the name of the high interest, high power stakeholder group?
Key players.
Group of stakeholders who are low interest,high power.
Keep satisfied.
