Unit 2 Flashcards
2.1-2.3
Managers
Conducts many different types of duties such as setting objectives, analysing data, leading teams of staff and making decisions and reviews.
Authoritarian Management Style
Power, control, and making decisions. Top of the hierarchy and filters control and instructions down the chain. Has little confidence in staff. Quick decision making. The dictatorship aspect can cause frustration and disappointment in employees.
Paternalistic Management Style
Employees seen as family members and are consulted in decision making processes but the final say comes from the manager. Staff are closely supervised and the leader tries gaining respect and cooperation. Staff view leaders as supportive.
Democratic Management Style
Two-way communication where the majority decision goes forward. Encourages better decision quality and improves morale and motivation. Could be an issue as to where the power and leadership lies.
Laissez-Faire Management Style
Group of people that isn’t management makes the decisions. Leader has a ‘hands-off’ approach with little to no input in the decision making. Only effective if employees are skilled and educated. Can make the workers feel insecure due to a lack of feedback.
Blake/Mouton
- Impoverished - Ineffective leader, staff highly demotivated due to lack of direction. Likely to be a high labour turnover rate which increases business costs.
- Country Club - Keeping staff happy as they believe if staff are motivated they will work better. Relaxed working environment but lack of direction. Production is generally low.
- Produce or Perish - Strict work rules. High levels of conflict in the team as punishment is seen as a way to increase motivation. Dissatisfied workers, high labour turnover but performance peaks.
- Middle of the road - Needs of production and people are never met. Workers never satisfied or dissatisfied and average production.
- Team - Understands company’s purpose and is looked after by management. Highly motivated with low labour turnover rates. Highly skilled staff resulting in efficiency and productivity.
Influences on management styles
- Company structure
- Particular situation
- Organisation’s culture and traditions
- Nature of tasks involved
- Employee skills and abilities
- Group size
- Personality and skills of manager
- Time Frame
Leadership
Relationship where one person influences behaviour or actions of other people.
Strategic decisions
Long term, affects business direction and often complex. May result in major change internally or markets. May also involve large financial commitment and a few years to see if it had the intended positive effect.
Tactical decisions
Medium term, less complex and more flexible e.g can be changed if failing to meet objectives.
Operational decisions
Day to day decisions, short term with little risk.
Scientific decision making
Uses facts and data in a systematic way in order to make a logical and evidence based decision.
Intuitive decision making
Uses experience and intuition and often no data or systematic to back up decisions. Decisions can be made quickly, often used for operation decisions because it is risky to use at tactical or strategic level.
Decision trees
Diagram analysis used to help with business decision making where there are several different options. They build probability of success and failure.
Benefits of decision trees
- Clear layout to consider all options
- Allows managers to fully analyse risks and consequences.
- Provides a framework to quantify outcome value and probabilities of achieving them.
Drawbacks of decision trees:
- Probabilities only give estimates and could be inaccurate.
- Oversimplifies a decision by focusing too much on the financial outcome.
- Doesn’t include other factors such as manpower and marketing issues.
- Time consuming to construct and can be interfered by biased views.
Stakeholder
A stakeholder is an individual or a group of people who has an interest or is affected by a business and its actions. Different stakeholders want different things from the business. E.g. shareholders, customers, employees, suppliers.
