Unit 2 Flashcards
Give 3 differences between managers and leaders
- Managers organise and co-ordinate whereas leaders inspire and motivate
- Managers maintain the status-quo whereas leaders actively seek change
- Managers tend to have short-term goals whereas leaders have more long-term goals
give me 3 influences on decision making
- Type of decision that is being made
- Type of workforce
- History or tradition of the business
From left to right what are the section of the Tannenbaum Schmidt continuum
- Tells
- Sells
- Consults
- Joins
- Use of authority by manager
- Area of freedom for subordinates
Define Paternalistic leadership
Akin to a parent/child relationship – where the leader is seen as a “father-figure”
Define Laissez-faire leadership
Leader has little input into day-to-day decision-making
2 influences on management and leadership style
- The culture within the business
- The skills and ability of the workforce
1 benefit and 1 drawback of autocratic leadership
- Useful for times when quick decisions need to be made, such as in a crisis situation
- May lead to a lack of motivation amongst the workforce due to little or no consultation
1 benefit and 1 drawback of paternalistic leadership
- A softer form of authoritarian leadership, which often results in better employee motivation and lower staff turnover
- Employees may become dependent on the leader which could stifle creativity and innovation
1 benefit and 1 drawback of democratic leadership
- May lead to increased motivation as workers are consulted on key decisions within the business and may feel as though they are trusted
- Can slow down decision making due to the need to consult with employees
1 benefit and 1 drawback of laissez-faire leadership
- Employees are far more independent which can relieve stress on the manager
- Lack of structure and guidance can lead to a lack of direction and purpose
Define uncertainty
- A situation where there is a lack of knowledge in a particular situation i.e. the order of things is unknown, probabilities to possible outcomes are unknown and the impact of events/circumstances is unpredictable.
Define opportunity cost
- The next best alternative is foregone when a particular option is chosen.
Give 2 benefits and 2 drawbacks of scientific decision making
- Logical approach to decision-making based on information
- Encourages careful consideration of alternatives
- Collection of required data may be expensive and time consuming
- Decisions may be based on unreliable/historical data
Give 2 benefits and 2 drawbacks of intuition decision making
- Decisions can be made quickly
- Encourages creativity and innovation
- Unsuitable for decisions that involve a higher degree of risk
- Could be more prone to bias due to a lack of data
Give 2 benefits and 2 drawbacks of using a decision tree
- Unsuitable for decisions that involve a higher degree of risk
- Could be more prone to bias due to a lack of data
- Probabilities are just estimates – always prone to error
- Uses quantitative data only – ignores qualitative aspects of decisions
2 supplier stakeholder needs
- Regular and reliable orders
- Timely payment
3 reasons why businesses should consider stakeholder needs when making decision
- Decisions are likely to be accepted and implemented more easily
- Due to the growing public interest in business activities, firms will gain a more favourable reputation if they are seen to be actively trying to satisfy different stakeholder needs
- Productivity levels increase, due to a rise in employee motivation, which can lead to an increase in competitiveness
what are the 4 quadrants of stakeholder mapping
Low power, low interest - Monitor
low power, high interest - Keep informed
High power, low interest - Keep satisfied
High power, high interest - Manage closely
