Unit 2 Flashcards

1
Q

What is an autocratic management style?

A

Where the leader makes the decision without consultation

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2
Q

What is a democratic style of management?

A

Where leaders make the final decisions but include workers in the process

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3
Q

What is a laissez-faire style of management?

A

WHere lots of freedom is given in decision making and leaders rarely get involved

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4
Q

What’s is the Tannenbaum Schmidt Continuum?

A

A scale showing management styles based upon how decisions are communicated with staff

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5
Q

What is the Blake Mouton Grid?

A

Identifies a managers style based on the concern for staff and their concern for production

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6
Q

What are the 5 styles on the Blake mouton grid?

A

Country club management - high people low production
Impoverished management-low people low production
Team management-high people high production
Task management/produce or perish-high production low people
Middle of the road management

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7
Q

What are the advantages of autocratic management?

A

Decisions made quicker
Uses knowledge and expertise of leader
Everyone knows exactly what they are doing

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8
Q

What are the advantages of democratic management?

A

Uses the skills of staff

Makes staff feel valued

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9
Q

What are the disadvantages of democratic management?

A

Takes longer to make decisions
May be disagreement
May annoy workers that leader listens but still make decision themselves

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10
Q

Disadvantages of autocratic management?

A

Doesn’t use worker skills
Makes workers feel not valuable
May not keep onto most talented workers

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11
Q

What is a decision tree?

A

A maths tool to help managers make the best financial decisions

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12
Q

How do you use a decision tree?

A

1) Predict possible outcomes
2) predict possible outcomes of each
3) probability x value = expected value
4) all expected values for that possible outcome added together - original cost = net gain.

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13
Q

What are some important external influences on business decision making?

A
  • economy (and future outlook)
  • current technology in the world
  • what rivals are doing
  • competition
  • politics, i.e. Regulations and red tape
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14
Q

What is stakeholder mapping?

A

A visual representation of the stakeholders of a business and their interest and importance to the business

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15
Q

What are the advantages of a decision tree?

A
  • give managers financial data to use in decision making

- can be used to justify why decisions have been made

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16
Q

What are the disadvantages of a decision tree?

A
  • purely quantitative
  • based on estimates
  • there’s probably a wider range of outcomes In reality
17
Q

What are the two types of decision making?

A

Scientific and hunch

18
Q

Why is the shareholder and stakeholder approach different?

A

The shareholder approach only considers shareholders whereas the stakeholder approach takes a wider range of stakeholders into account when a business is making decisions

19
Q

Why might a firm who takes a long term approach have to consider ethics?

A

In order to maintain a good image and therefore avoid bad PR