Unit 2 Flashcards
What is the role of managers
Setting objectives, analysing data, leading, making decisions and reviewing
What does setting objective entail for managers
Setting goals for group of subordinates and deciding what work needs to be done to meet these goals
What does analysing data entail for managers
Identify where the org is now, where the org wants to be and how it could get there by using info to make decisions
What does reviewing entail for managers
Reviewing decisions and data frequently to ensure the org is on track to meet objectives
Give 3 qualities of leaders
-adaptable to situations
-assertive
-decisive
-achievement orientated
-persistent
Name 3 differences between management and leadership
Management:
Focus on present
Relatively risk averse
Plan and oversee necessary work
Focus on executing functions
Leadership:
Look to the future
Risk seeking/ comfortable w/ risk
See options others avoid as opportunities
Ability to influence and motivate
Agents of change
What are the four different leadership styles
-Authoritarian
-Paternalistic
-Democratic
-laissez-faire
Give 3 advantages of authoritarian leadership
-faster decision making
-improves productivity
-reduces employee stress
-improves crisis management
Give 2 disadvantages to authoritarian leadership
- results in micro management
- creates dependency in skills of leader
- discourages culture of feedback
- lack of trust
- increase in absenteeism
Give 3 advantages to paternalistic leadership
-job satisfaction
-effective communication
-employee motivation
-high employee loyalty
Give 2 disadvantages to paternalistic leadership
-employee dependence
-lack of delegation
-employee dissatisfaction if bad decisions made by leaders
-low morale
Give 3 advantages of democratic leadership
-job satisfaction/ commitment
-greater innovation
-multiple solutions generated
-trust
-less absenteeism
Give 3 disadvantages of democratic leadership
-decision making slows down
-employees may feel overwhelmed
-concern as to where power lies
Give 2 advantages to laissez-faire leadership
-employees practice leadership and independence
-employees use their expertise
-boosts employee morale
Give 2 disadvantages to laissez-faire leadership
-lower role awareness
-employees may need directions
-may not suit all employees/ business
-conflict may increase
Name 2 features of authoritarian leadership
-power, control and decision making at top of org
-communication is one way
-rewards for good performance and penalties for bad performance
Give 2 features of paternalistic leadership
-employees are consulted and leaders explain the reasons but decisions making remains at the top
-leaders decide what’s best for the employees
-workforce treated as a family
Give 2 features of democratic leadership
-two way communication and considerable delegation
-workers fully involved in decision making process
-run on basis of agreement by majority
Give 2 features of laissez-faire leadership
- abdication of responsibility and leaders have minimal input
- staff able to use their initiative and demonstrate their capabilities
- effective when employees are highly skilled and experienced
What is the tannenbaum Schmidt continuum
Model that helps to show the ratings of management styles and depicts 7 different styles of management differentiated by the degree of control exerted by management
What is McGregor’s ‘Theory X’ and ‘Theory Y’
Theory X:
Theory X managers assume their workers are motivated by money, are lazy, need to be supervised and have no wish or ability to help make decisions
Theory Y:
Theory Y managers assume their work sets workers want to contribute their ideas, have different needs, enjoy work and poor performance is due to boring work
Give 4 influences on the choice of leadership style
-company structure
-situation
-nature of the task
-company’s culture and traditions
-employees
-group size
-personalities & skills of managers/leaders
What 3 things does the effectiveness of different leadership styles depend on
-resources available
-staff recognition or lack of thereof of need for decisions/change
-support from board of directors
What type of things are decisions made on
-people
-money
-materials needed
-machinery
What is decision making about
Minimising risk but maximising reward
What is scientific decision making
A systemic process which eliminates the practice of decisions being made by intuition and removes bias = reduced risk
What is the process of scientific decision making
- Setting objectives
- Gathering data
- Analysing data
- Selecting a strategy
- Implementation
- Reviewing
What does setting objectives consist of in terms of scientific decision making
- ensuring objectives are SMART
- determining what you want to achieve
What does gathering data consist of in terms of scientific decision making
- gathering data through primary and secondary research methods
- having data on costs, demand, location etc
- break-even analysis; ratio analysis; investment appraisal
What does analysing data consist of in terms of scientific decision making
- filtering and analysing the data to aid decision making
- ensuring the quality of data (reliability and validity is important)
What does selecting a strategy consist of in terms of scientific decision making
Developing a corporate plan from data analysis
What does implementation consist of in terms of scientific decision making
- designating resources and ppl to plan
- putting the plan into action
What does reviewing consist of in terms of scientific decision making
Looking at how well the outcome succeeded in achieving initial obj
Give 2 benefits of the scientific approach
- clear sense of direction
- decisions based on logic/rational thinking
- ensures decision constantly monitored and reviewed so problems can be identified quickly
- it’s flexible; any stage the decision can be reviewed and altered
- easier to defend decisions based on logic
What are the 3 benefits of decision making based on intuition
- less time consuming than scientific approach
- less expensive than scientific approach
- scientific approach is based in past data, decisions may be better if they rely on instinct if manager who can anticipate change in trend
Name 3 factors that influence choosing between scientific and intuition approaches
- speed of decision
- info available
- size of business
- predictability of situation
- character of person/ culture of org
What 3 things is decision making based on
- experience
- data
- gut feeling
What is opportunity cost
The real cost of a decision in terms of the next best alternatives. Choosing to pursue one thing inevitably results in forgoing something else.
Give a decision tree profile
- a mathematical model
- estimates and probability
- provides a pictorial approach
- helps decide whether net gain from decision is worthwhile
What does a square represent in a decision tree
Decisions
What does a circle represent in a decision tree
Uncertain outcomes
What is expected value and how is it calculated
The monetary value of an outcome of a decision.
probability x result (£)
How is total expected value calculated
(probability A x Result £) + (probability B x Results £)
Give 2 values of decision trees
- it’s part of the decision making process
- makes it easier to make decisions
- makes it easier to understand complex info
- forces the manager to quantify the impact of each decision
Give 2 benefits of decision trees
- provides an effective structure
- helps to form balanced image of risk and reward
- emphasises that every decision has a range of possible outcomes which leads to more careful considered decisions
- quantifies risk and reward
Name 3 limitations of using decision trees
- only uses estimates
- doesn’t utilise qualitative data which is very important
- least useful when decisions don’t involve clear-cut alternatives
- based on past data which ignores the constant changing nature of business environment
- figures may be biased/ manipulated to gain particular outcome
How do you work out net gain in decision trees
Expected value - costs
What are strategic decisions
- when there’s concern for the general direction and overall policy of business
- have significant long-term effects
- requires detailed consideration
- can be high risk because outcomes unknown
What are tactical decisions
- short to medium term
- concerned with specific areas/functions of business
- calculated and outcomes more predictable
- may be used to implement strategic decisions
Give 4 factors that influence decision making
- tactical vs strategic decisions
- missions
- objectives
- ethics
- external environment
- resource constraints
- stakeholders
- culture of org
What are internal stakeholders
SH closely connected to the org and likely to have strong influence on how the org is run
What are external stakeholders
SH with diverse needs and varying levels of influence on org’s ability to meet its objectives
Give 2 employees expectations
- Good working conditions
- Job security
- Promotional aspects
What are shareholders expectations
Satisfactory return on investment
Give 2 supplier’s expectations
- Prompt payments
- Regular orders
Give 2 local community expectations
- Jobs
- Consideration e.g. noise
- Responsible attitude
Give 2 customer expectations
- Safe products
- Good quality
- Low prices
- Convenience
Give a government expectation
- Taxes
- Local/regional investment/development
What is a win-lose situation
If one group of SH gains more and another has gained nothing/less
What is the process of communication
- The sender: initiates the communication
- Message: the info
- Medium: how the info is passed on
- Receiver: target audience
- Feedback: was the info received and understood?
Give 3 benefits of effective communication
- motivational for employees bc they feel a part of decision making
- positive comm = improves performance of workforce
- able to use info to discover customer needs
- increases awareness of business
- allows business to anticipate public reaction
- support from powerful SH could result in more resources
Give 3 communication and consultation channels
- website info including regular updates
- media releases that report on project milestone
- public forums if project involves local community
- formal meetings w/ powerful SH
- formal consultations w/ external & internal SH
What were the 4 ways to manager relations with SH as per the Cyert and March book: a behavioural theory of the form
- satisficing: negotiations to arrrive at a an acceptable compromise
- sequential attention: management focus on SH needs in turn = keeps happy
- side payments: if SH primary needs and obj can’t be met = compensated in other way
- exercise of power: a deadlock is resolved by a senior figure, forcing through a decision based on the power they possess
What is stakeholder mapping
Helps managers classify SH according to their power and interest and make recommendations about how to manage different groups in relation to this
What is corporate social responsibility (CSR)
a commitment by business to contribute to the community and environment
(Social and environmental)
Give one way in which corporate social responsibility can be carried out
- reducing waste pollution
- contributing to educational and social programs
- earning adequate returns on employed resources
What does corporate social responsibility bring about (name 1 thing)
- more efficient use of resources
- positive publicity
- increased interest by potential shareholders
What is social auditing
CSR reporting
The process by which a business attempts to assess the impact of the entire range of its activities on SH and society in general
