Unit 2 Flashcards
what are the 5 main tasks of managers:
set objectives
organise tasks
motivates and communicates
measure (appraises performance)
develop people
what is a leadership style ?
a way in which a leader approaches his or her role of planning, organising, directing, and controlling
what are the 4 basic styles of leadership ?
- autocratic
- democratic
- paternalistic
- laissez-faire
what is an autocratic leadership style ?
where decisions are made without consulting others
what is laissez-faire leadership style ?
allows team members freedom if they meet deadlines and do their work
what is the paternalistic leadership style ?
consult employees and try to make a decision that will benefit everyone
what is the scale of the Tannebaum and Schmidts continuum ?
tells, sells, consults, delegates
what relationship does the Tannebaum and Schmidt continuum show ?
the relationship between authority retained by the manager and the level of freedom
what are the uses of democratic leadership ?
useful when there are complex decisions to be made requiring a range of skills
what are the uses of autocratic leadership ?
useful when quick decisions need to be made
what are the uses of laissez-faire leadership ?
useful way to encourage production of highly creative work by subordinates
what is an advantage and disadvantage of democratic leadership ?
ADV: employees may have a greater commitment to the business, satisfaction and quality of work may improve
DADV: slow decision making and need for consensus may make it hard to take the ‘best’ decision
what is an advantage and disadvantage of autocratic leadership ?
ADV: decisions and direction of business will be consistent. may help maintain and project and image of confidence, and well-managed business
DADV: lack of information, so subordinates depend highly on leaders decisions
what is an advantage and disadvantage of laissez-faire leadership ?
ADV: may bring the best out of highly skilled, professional, and creative groups
DADV: staff may lack focus and sense of direction
what is scientific decision making ?
decision making based on data using a logical and rational approach
e.g. decision trees
what tools could be used to aid scientific decision making ?
. the Boston matrix
. the product life cycle
. investment appraisal
. ratio analysis
. decision trees
what is opportunity cost ?
the cost of the next best alternative forgone.
why does opportunity costs occur ?
scarcity of resources (funds, raw materials etc.).
what is intuition ?
decisions based on gut feeling rather on data and a=rational analysis
what is an example of where intuition would have been more successful than scientific decision making ?
Coca-Cola changing their recipe due to taste tests, which proved to be a marketing disaster
what are the factors that influence decision making ?
- Mission & Objectives
- Ethics (Morally correct)
- External Environment (downturn in the economy etc)
- Competition
- Scarcity Of Resources
what are 6 stakeholders ?
employees
customers
shareholders
suppliers
local communities
government
what are the interests of employees ?
job security, good working conditions & pay
what are the interests of customers ?
good customer service, and value for money
what are the interests of shareholders ?
capital growth, dividends
what are the interests of suppliers ?
regular orders, and on-time payment
what are the interests of local communities ?
avoidance of pollution and congestion, and employment
what are the interests of government ?
employment and payment of taxes
what are stakeholders ?
people, groups, organisations, or members of society who have an interest in a business
what are the axis n the stakeholder map >?
power of stakeholder
interest of stakeholder
how would a business deciding to relocate overseas create conflict between the shareholders and employees ?
shareholder (benefit from potential lower costs and increased dividends)
employees (Lose jobs)
how would introducing new technology create conflict between shareholders and employees ?
shareholder (benefit from potential lower costs and increased dividends)
employees (Lose jobs)
how would expanding production create conflict between shareholders and the local community ?
shareholders (greater sales and profit, resulting in higher dividends)
local community (greater congestion and pollution)
how could increasing the price of a businesses products create conflict between shareholders and customers ?
shareholders (increased profit)
customers (Higher cost)
what are the 4 influences on owners relationships with stakeholders ?
. leadership styles
. business objectives
. government
. state of the economy
what are different ways relationships with stakeholders can be managed to significantly reduce conflicts ?
stakeholder mapping
good communication and consultation
careful planning and introduction of decisions, which may significantly effect specific stakeholders
