Unit 2 Flashcards
Qualities of leaders
Leaders set an example for other workers
Leaders are naturally chosen whereas managers are appointed
Take risks
Qualities of managers
Confident in decision
Problem solver
Good relationship with employees
Autocratic
Someone’s who’s very commanding and doesn’t let people have a say
Democratic
Someone who takes all employees opinions into considerations
Paternalistic
When someone is the father figure of the business and your all in a family type of system
Laissez faire
When your given a task and you do it how you like
Internal influences of leadership styles include
Financial state of business
Motivation of employees
External influences on leadership styles
Action of competitors
Speed and growth of economy
Benefits of decision trees
Forces managers to consider the different probabilities of success and failure and the impacts
Consider the initial costs
Way of comparing option on financial gain
Logical comparison of options available to managers at a given time
Drawbacks of decision trees
Data can be inaccurate because of bias
Time consuming and waste of resources
Figures are based on predictions
Can be manipulates by managers to get desired output
Usefulness or stakeholder mapping
Can help identify external and internal stakeholders
Can identify stakeholder interests and avoid conflict
Might help improve stakeholder engagement and relationship building
Can help understand issues from perspective of stakeholders
Drawbacks of stakeholder mapping
Data only as good as the knowledge of the plotter
Bias
Time consuming
False sense of security
What is the tannenbaum Schmidt continuum
A theory that places mangers on a scale according to how they manage and lead
What are the steps to approach decision trees
Identify options
Add possible outcomes
Add associated costs outcomes and possibilities
Calculate expected values and net gains
What are internal influences of leadership styles
Urgency of task
Unexpected tasks
Skill set of workforce
Size of workforce
What are external influences of leadership styles
Economic demands
External crisis
Speed and growth of economy
Actions of competitors
What is an APR
Annual percentage graph
Affects how business source materials for their products
If interest is high it means people don’t spend which means less disposable income
What are exchange rates
The value of one currency expressed in terms of another currency
What does SPICED stand for
Strong pound impacts cheap exports dear
What does WPIDEC stand for
Weak pound impacts dear exports cheap
Explain what happens when prices go up
Prices go up
Inflation goes up
Banks up interest rates
Economy goes down
Other countries resort to trading with different places
Give examples of internal stakeholders
Shareholders
Employees
Managers
Owners
Give examples of external stakeholders
Local community
Government
Council
Suppliers
Banks
Competitors
What do shareholders want
Brand recognition
Return on investment dividends
Profit profitability
Share value when selling
What employees consider
Salary
Flexibility
Fair treatment
Personal development
What do managers consider
Productivity
Job security
Fringe benefits
High employee morale
Employee retention
What do owners want
Success
Market share
Growth
Cash
Survival
Reputation
Loyal customers
Profits
What do banks want
Cash
Ability to pay back on time
Interest rates
What do pressure groups consider
Green
Ethics
Land and wildlife
Welfare
What does the local community consider
Job opportunities
Noise and visual pollution
What do suppliers want
Fair trade
Partnership
Pay on time
Ethics of use
Bulk buying
What do customers want
Quality
Availability
Value for money
Convenience
Ethics
Customer service
What factors affect approach to decision making
Profitability of situation
Speed of decision
Character of person
Information available
Size of business
What does centralised mean
All decisions made from head office then pushed out
What does de centralised mean
Local branches make decisions
What is intuition
A way of decision making that involves a guy feeling from the manager or a hunch that is usually from experience
What are benefits of intuition
Experience is reliable
Quick and cheap
Reduces risk of flawed data
What are drawbacks of intuition
Very subjective
High chance of negative outcome as it’s not scientific
Investors might not support decision
Higher level of risk
What is scientific decision making
A manager uses data and analyses is before making the decision and based the decision in data and figures
What is the decision making process
Risk
Reward
Uncertainty
Opportunity cost
