Unit 2 Flashcards
1
Q
Give 3 differences between managers and leaders
A
- 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
2
Q
give me 3 influences on decision making
A
- Type of decision that is being made
- Type of workforce
- History or tradition of the business
3
Q
From left to right what are the section of the Tannenbaum Schmidt continuum
A
- Tells
- Sells
- Consults
- Joins
- Use of authority by manager
- Area of freedom for subordinates
4
Q
Define Paternalistic leadership
A
Akin to a parent/child relationship – where the leader is seen as a “father-figure”
5
Q
Define Laissez-faire leadership
A
Leader has little input into day-to-day decision-making
6
Q
2 influences on management and leadership style
A
- The culture within the business
- The skills and ability of the workforce
7
Q
1 benefit and 1 drawback of autocratic leadership
A
- 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
8
Q
1 benefit and 1 drawback of paternalistic leadership
A
- 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
9
Q
1 benefit and 1 drawback of democratic leadership
A
- 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
10
Q
1 benefit and 1 drawback of laissez-faire leadership
A
- 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
11
Q
Define uncertainty
A
- 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.
12
Q
Define opportunity cost
A
- The next best alternative is foregone when a particular option is chosen.
13
Q
Give 2 benefits and 2 drawbacks of scientific decision making
A
- 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
14
Q
Give 2 benefits and 2 drawbacks of intuition decision making
A
- 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
15
Q
Give 2 benefits and 2 drawbacks of using a decision tree
A
- 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
16
Q
2 supplier stakeholder needs
A
- Regular and reliable orders
- Timely payment
17
Q
3 reasons why businesses should consider stakeholder needs when making decision
A
- 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
18
Q
what are the 4 quadrants of stakeholder mapping
A
Low power, low interest - Monitor
low power, high interest - Keep informed
High power, low interest - Keep satisfied
High power, high interest - Manage closely
19
Q
What do managers do in a business?
A
Managers are responsible for setting objectives, organising resources, motivating staff, monitoring performance, and developing people to achieve business goals.
20
Q
How do managers use strategic planning?
A
Managers set SMART objectives and use tools like Ansoff’s Matrix or Porter’s strategies to guide business direction and decision making.
21
Q
How do managers organise business resources?
A
Managers allocate people, finance, and equipment effectively. They may use different structures (tall/flat) to improve efficiency and delegate responsibilities.
22
Q
How do managers motivate and lead employees?
A
Managers apply motivational theories (e.g. Maslow, Herzberg) and adopt leadership styles (autocratic, democratic, laissez-faire) depending on the situation.
23
Q
How do managers monitor performance?
A
They use KPIs, budgets, and performance reviews. They identify underperformance and take corrective action to stay on target.
24
Q
How do managers develop their team?
A
Managers provide training, feedback, and opportunities for growth. This improves employee engagement, productivity, and retention.
25
What external factors affect managerial decisions?
Economic conditions, technology, competition, and laws (PESTLE factors) impact how managers lead and make decisions.
26
How important is a manager’s role to business success?
A manager’s effectiveness depends on their leadership style, adaptability, and the context. Strong managers help align employees with long-term business goals.
27
What is the Tannenbaum-Schmidt Continuum?
It’s a leadership model showing the range of behaviours a manager can adopt, from authoritarian (telling) to democratic (delegating), depending on how much authority the manager uses vs. how much freedom is given to subordinates.
28
When would a manager use the “Tells” or “Sells” style?
In high-pressure situations like a factory crisis, or when dealing with inexperienced staff. The manager needs to act fast and keep tight control
29
When would a manager use the “Consults” or “Joins” style?
In creative industries (e.g. tech or marketing), or when staff are skilled. It boosts morale, uses employee ideas, and encourages teamwork.
30
What are the advantages of using consultative or participative styles?
Higher motivation
Better decision-making (more viewpoints)
Employees feel valued
Good for long-term team development
31
What are the advantages of using autocratic styles?
Fast decisions
Clarity of direction
Useful in emergencies
Effective with unskilled or new workers
32
How does a manager choose where to sit on the continuum?
Depends on:
Urgency of decision
Staff skills and experience
Business culture/structure
Risk level and environment
33
How useful is the Tannenbaum-Schmidt model for managers?
Encourages flexibility in leadership
Helps match style to situation
Disadvantages:
May oversimplify leadership
Doesn’t account for all personality types or hybrid styles
34
How do managers decide their leadership style on the Blake Mouton Grid?
Depends on:
Team competence
Task urgency
Company culture
Manager personality
Example: A Team Leader style may be used in an innovative tech firm; Produce or Perish might suit a high-pressure sales team.
35
What are the strengths and weaknesses of the Blake Mouton Grid?
Useful visual tool
Helps leaders assess and improve their style
Disadvantages:
May oversimplify complex behaviour
Does not consider external pressures (e.g. economic crisis)
36
What factors influence business decision making?
Internal and external influences such as:
Mission & objectives
Ethics
Risk & uncertainty
Stakeholder needs
Resource constraints
Opportunity cost
Market conditions
(AQA spec explicitly includes these)
37
How do a business’s mission and objectives influence decisions?
They provide the strategic direction and long-term purpose.
Decisions must align with:
The overall mission (e.g. "sustainable growth")
The SMART objectives (e.g. "increase market share by 10%")
38
Give an example of a mission influencing a business decision.
If a firm’s mission is to “promote eco-friendly living,” it might choose recyclable packaging even if it's more expensive — because it's consistent with its values.
39
How do ethics influence decision making?
Ethical values may prevent a firm from choosing the cheapest supplier if they exploit workers. Ethics can limit options but build reputation long-term.
40
Which influence is most important in business decision making?
It depends on:
The type of decision (strategic vs operational)
The business context (e.g. crisis = short-term focus)
The leadership style of managers
A strong mission provides consistent guidance
But external pressures (e.g. recession) may override internal goals
41
What are the key influences on decision making in business?
Mission and objectives
Ethics
The external environment (e.g. competition, economy)
Resources
Risk and uncertainty
Stakeholder preferences
→ These influence both strategic and operational decisions.
42
What are the pros and cons of ethical decision making?
✅ Builds long-term customer loyalty
✅ Attracts ethical investors and staff
❌ Can increase costs and reduce short-term profits
❌ May create conflict with profit-driven shareholders
43
What is the external environment in business?
The external environment includes outside factors that affect decision making, like:
Economic conditions
Political/legal factors
Social trends
Technological change
Environmental pressures
→ Often summarised using PESTLE analysis
44
Which has more influence: ethics or the external environment?
Ethics: guides long-term, values-led choices
External environment: often forces short-term responses
✅ Strong ethical culture helps navigate external shocks
❌ Some businesses may ignore ethics when under external pressure (e.g. inflation, new legislation)
45
What happens when ethics clash with the external environment?
A business may face pressure to cut costs (external) but resist doing so unethically (internal ethics). Strong leadership is needed to balance both.
46
What are resource constraints in business decision making?
Resource constraints refer to limitations on the availability of resources like:
Capital (money)
Labour (human resources)
Time
Raw materials
These constraints affect the decisions a business can make and how it allocates resources.
47
What types of resource constraints might a business face?
Financial constraints: Limited capital to invest in new projects
Human resources: Lack of skilled employees
Physical resources: Limited machinery or raw materials
Time constraints: Tight deadlines for projects or decision making
48
How do resource constraints influence business decisions?
Businesses may have to prioritise projects or tasks due to limited resources.
Decisions may focus on short-term survival (e.g. cutting costs) rather than long-term growth.
Firms might need to make trade-offs, choosing between alternatives that require different resources.
49
How might labour constraints affect decision making?
A company may decide to outsource production to a lower-cost region if it cannot hire enough skilled workers locally to meet demand.
50
How do time constraints affect business decisions?
When under tight deadlines, a firm may decide to launch a product earlier than planned, with fewer features, to beat competitors to market.
51
What are the trade-offs businesses face due to resource constraints?
Quality vs. cost: Reducing quality to lower costs
Short-term vs. long-term goals: Focusing on immediate profitability at the expense of long-term investment
Innovation vs. stability: Limiting innovation to maintain stable cash flow
52
How do resource constraints shape the decision-making process?
Managers must evaluate how to use limited resources effectively.
May involve cost-benefit analysis to determine which projects offer the highest return.
Constraints can lead to strategic changes such as focusing on core products or cutting non-essential services.
53
How can resource constraints impact the long-term strategy of a business?
A firm with limited resources may decide to focus on a niche market rather than broad diversification.
Firms may choose cost leadership strategies (minimising costs) rather than differentiation (which requires investment in innovation).
54
How does resource constraint impact the quality of decision making?
Positive: Forces managers to make efficient, focused decisions.
Negative: May limit creativity or long-term growth if firms are overly focused on immediate resource availability.
Risk of missed opportunities: Firms might miss market opportunities by not having enough resources to invest in new products or technologies.
