Unit 2

Question 1

What do managers do?

Answer 1

1. Set objectives- set goals for a group and decide what needs to be done
2. Organise- divide the work into manageable activities and select people to undertake them
3. Motivate and communicate- create a team of people to work together
4. Measure- analyse and appraise performance
5. Develop people

Question 2

Leadership styles

Answer 2

-autocratic leaders
-democratic leaders
-paternalistic leaders
-laissez-faire leaders

Question 3

Autocratic leaders

Answer 3

Make decisions without consulting others

Question 4

Democratic leaders

Answer 4

Make the final decision but include others in the process

Question 5

Paternalistic leaders

Answer 5

Consult and try to make decisions in the best interest of all

Question 6

Laissez-faire leadership

Answer 6

Allow team members freedom if they do their work and meet deadlines

Question 7

Stages of Tannenbaum Schmidt’s continuum

Answer 7

Tells- manager makes decisions and announces
Sells- manager ‘sells’ decisions
Suggests- manager presents ideas and invites suggestions
Consults- manager presents tentative decision subject to change
Shares- manager defines limits and asks the group to make a decision
Delegates- manager permits subordinates to function within the limits defined by superior

Question 8

Advantages & disadvantages of democratic leadership

Answer 8

-useful when complex decisions requiring a range of specialist skills
-commitment to business, satisfaction and quality of work may improve

-slow decision making and need for consensus may make it hard to take ‘best’ decisions

Question 9

Advantages & disadvantages of autocratic leadership

Answer 9

-useful when quick decisions are required
-decisions and direction of business will be consistent
-may project image of confident, well managed business

-lack of information, so subordinates are highly dependent on leaders
-supervision needed

Question 10

Advantages & disadvantages of laissez-faire leadership

Answer 10

-can encourage production of highly creative work by subordinates
-may bring the best out of highly professional or creative groups

-may not be deliberate but bad management
-staff lack of focus and sense of direction
-much dissatisfaction

Question 11

Influences on leadership style

Answer 11

Individual- some leaders feel they always have to be in control whereas others may feel more comfortable discussing decisions

Nature of industry- some industries require a high degree of creativity

Business culture- if a business has a tradition of doing things in a particular way, then this might determine the style adopted

Question 12

What is scientific decision making?

Answer 12

Decision making that is based on data and uses a logical and rational approach

Question 13

Opportunity cost

Answer 13

The cost of next best alternative that will be missed by making a particular decision.

Question 14

What is intuition?

Answer 14

Making decisions based on gut feeling rather than on data and rational analysis

Question 15

What are decision trees?

Answer 15

Tree like diagrams that can be used to determine the optimum course of action in situations where several possible alternatives with uncertain outcomes exist.

Question 16

Benefit & limitations of a decision tree

Answer 16

-can be a useful analytical tool as they make managers think and quantify decisions rather than rely on intuition

• managers may be influenced by their own bias towards one decision rather than another and may make the returns for their favoured approach more attractive
  -the probabilities are just guesses and may not be very accurate

Question 17

Influences on decision making

Answer 17

Mission and objectives- its essential purpose

Ethics- are decisions morally correct

External environment- a downturn in the economy or a rise in interest rates may have an impact on decision making

Competition- other business may affect the decisions made

Resource constraints- there is a limit to what a business can physically do

Question 18

Stakeholders examples and interests

Answer 18

-employees- job security
-customers- good customer service and value for money
-shareholders- capital growth and dividends
-suppliers- regular order and on time payment
-local communities- avoidance of pollution and congestion, and employment
-government- employment and payment of taxes

Question 19

What diagram shows stakeholder mapping

Answer 19

Mendelow’s matrix

Question 20

Low power, low interest stakeholders

Answer 20

Least important
-inform via general communications: newsletters, websites, mail shits
-aim to move into right hand box (more interest)

Question 21

High interest, low power stakeholders

Answer 21

Show consideration
-make use of internet through involvement in low risk areas
-keep informed and consult on interest area
-potential supporter/goodwill ambassador

Question 22

Low interest, high power stakeholders

Answer 22

Meet their needs
-engage and consult on interest area
-try to increase level of interest
-aim to move into right hand box (more power)

Question 23

High interest, high power stakeholders

Answer 23

Key player
-key players focus efforts on this group
-involve governance/ decision making bodies
-engage and consult regularly